Great Inventory Control Methods & Management Techniques – Inventory management is not just another type of record keeping. Being an online seller, inventory management can make or breaks the bottom line, so you need to be very careful and invest in inventory optimization solutions. Solid inventory management optimization is a key to a healthy eCommerce flow. With good inventory management, the sellers can know how much stock that they want to order and make a profit. Without this clarity, the sellers risk reducing the profits by under and overstocking.
To help the merchants to get solid control over the inventory, DEAR System’s inventory management software provides you an integrated, effective, and easy way of bringing a solid management process to your business. We are going to highlight 6 important inventory management solutions and techniques.
we are going to highlight 6 important inventory management solutions and techniques. With the given practices, you will be able to optimize the inventory for higher profits rather than letting this tie up the cash flow.
1. Use Cloud Inventory Management Solution
Earlier, managing inventory was one big challenge. Before the advent of computers & inventory management solutions, companies need to track the inventory manually that meant a higher potential for human error. In the world today, where companies operate worldwide, an idea to manually track down the inventory is not just quaint but borderline impossible. With many warehouses, global shipping, and supply chains, this task of managing the inventory has now become highly complicated than this was some years before.
Here is where technology will prove very useful.
The current inventory management solution will automate a vast amount of the inventory management process. The barcode & RFID scanning gets rid of human error as machines read down codes on the items rather than manually typing in the numbers.
2. Identify the responsible person
Identify the dedicated individual who will take up this role of the inventory manager. This can ensure you somebody has a clear overview of the inventory and will give fast answers about your management system. You may end up with a big mess, in case there is nobody responsible & many people are doing the separate tasks. The inventory control specialists will manage all the merchandise products that are in transit and on hand. They perform certain adjustments, manage the returns, validate merchandise & implement the inventory reporting methods.
3. Create Cost-Efficient Buying Methods
Another significant feature of getting inventory management software is ensuring that you have the best stock levels in the inventory relative to the level of demand every product generates.
Due to this, you must establish the procedures to determine how much inventory that you want to carry on with every item. For doing this, you will have to consider the current historical data. The product that is not selling and has a downward trend in the needs of the sales you to get it less. Getting armed with such knowledge, you will be able to adjust the stocking guidelines to you’re your demand.
4. Prioritize the valuable products
Prioritizing your product line is the free fall way in the inventory management methods. Make use of the 80 to 20 principle as well as focus on items that will matter a lot. Normally, 80% of the demand is generated by around 20% of the items. Spend your effort on the top items, reviewing your stock position, forecasting, maintaining safety stock & reordering frequently. So, the next biggest selling 30 percent of the items typically will generate around 10% of the sales. Any slowest items will account for half these items you stock, however generate just 10% of the sales.
5. Schedule the inventory auditing
Even with systematized and good inventory management that decreases human error, checking the inventory manually is still one important practice. Relying on the reports or software is quite wonderful for monitoring the stock on daily basis, but you have to check the stock physically to ensure the inventory matches with the current records.