If you’re running a growing small business, you need to pay extra attention to your inventory. If you’re here because you were browsing “stock management tips”, your business is already in the safe zone because you care about it!
You can perfectly see the importance of working on how to manage inventory effectively. It’s the essential structure of your business. It keeps the business run and informs you whether it’s been running well or poorly.
The operation might sound simple for you. However, if you don’t take it seriously, your business will face a problem especially if there is a growing number of customers. But, worry not, we have provided you 7 stock management tips to help you manage your inventory smartly.
Invest in advanced inventory management software
Inventory management software is the most recent strategy in managing your stock. This technology allows you to digitize inventory recording, forecast future needs, generate various reports in a few seconds. You can do these activities (and more) from various devices such as laptops, phones, or tabs from everywhere.
ClickWork offers you a cloud-based inventory management software that fits perfectly for SMEs. Firstly, ClickWork is ready-to-use. All that you have to do is signing-up and you can use the system. Secondly, it’s free! You can utilize all features without having to upgrade.
The inventory management software from ClickWork is complete. You can manage products, tracking serial numbers, barcodes, quantities, and more from different locations. Therefore, you can manage it all in one platform. Learn more about the software here.
Monitor the sales performance of each product
The second tip that you can apply is organizing a strategy based on the sales performance of the inventory. It is really important because you can maintain the right products available with the right amount.
Remember, every product has its own age. If certain products are not selling well and stacked on the shelf for a long time, its value will decrease over time. Moreover, it will take up valuable spaces in your warehouse. To avoid such a problem, you can get rid of them with strategic selling promotions.
So, make sure that you have adequate stocks for the best-selling items so that you can always fulfill customers’ demands. However, keep it strategic and accurately forecasted.
If you have the inventory management software, you will have an automated notification that instructs you to restock or not to restock based on the products’ selling performance.
Keep your storage organized
You should make sure that the products in your warehouse are neatly organized. It might sound like laborious work but it will make your business operates seamlessly in the future. After all, a chaotic, messy, unorganized storeroom can lead to missing inventory. It will cause you to lose revenue and customers.
Here are some strategies that you can use
- Utilize the room vertically
- Store best-selling products in clear sight
- Invest in effective storages
- Use labeling/barcode system
- Keep it clean and safety
- Provide enough lighting
- Don’t let customers enter the storage room
- Provide an empty space for you to pack and unpack goods
Using inventory management software also enables you to look for certain goods. If you type a code or scan the barcode, the system can display in which shelf it is stocked and its amount available in the warehouse.
Use FIFO method
FIFO is the abbreviation of “first in first out”. In business, products should be sold chronologically based on its purchase date or production date. What comes in first, must go out first. That’s the basic rule.
This rule applies to every product, especially perishable items such as plants, food, and other organic products. The best way to implement FIFO is by setting your store and warehouse to this model: place the older products on the front side of the shelves, the newer on the back.
It’s practical, isn’t it?
Do the stocktake
To make sure that everything is up to date, you can’t just rely on one software only. No matter how good your software is, you need to make sure that the data match the real number in the physical storage room. This is the definition of the stocktake. If you find the data different from the real one, make sure that you’ve made the change.
When should one do the stocktake? There’s no firm rule to this. You can do it once a year, at the end of the year, of every month if it’s necessary. You can do whenever you feel you need it.
Build relationships with multiple suppliers
Many companies are depending only on one supplier only or suppliers in the same region. For the sake of a good partnership, they said. However, the COVID-19 pandemic has taught us that the strategy is not effective. Why?
If one supplier can’t operate for certain conditions, you can’t have raw materials or goods to sell. You put your business in danger. However, if you have multiple suppliers at a time, you won’t have to worry if your main vendors are troubled.
Maintain quality control
Lastly, remember to always check the quality of your product. Whatever you sell, you should make sure that the customers will have the products in good condition, function well, and safe to be used.
It’s really important to do quality control to make your customers think that you care about them. Moreover, it also helps your stock management. It prevents you from wasting your valuable spaces in the store or warehouse with damaged items.
In several companies, there are employees who are responsible for checking the quality of the products and proceed it with proper next actions. Maybe you can consider distributing this task to one of your employees.
Those are the 7 smart stock management tips to manage your inventory. We hope that these tips help your management and contribute to its growth!