What effects does a poor inventory management have on a business? A lot! It can decrease employee productivity, sales and warehouse arrangement. It can also create inaccuracies, delays and sometimes, a failure in business. Shocking, isn’t it?
You can only prevent such distressing poor inventory consequences if you are good at managing the field. As everything that comes in and out of the store can give a big impact on the success of a business, E-commerce industries, and online retail brands are giving inventory management of top importance.
Here you will know how to make a good and accurate inventory, for the win!
Inventory management is best defined as a company’s practice to keep track of stocked goods. It involves monitoring their weight, location, dimension and amount. Being able to manage stocks is making good inventory a sense. Because no matter how big a store is, controlling even the smallest products in there is important for the sales.
Inventory management is also considered as an element of a supply chain organization. It includes aspects such as storage and ordering record. To make a winning inventory management, there are certain key principles every business can do. Here are some of them:
Organize Warehouse Flow
Dirty, outdated and unorganized warehouse flow can cost money, or in other words, can lose money. This key principle is does not make any different from any other industries because leading business owners always have 5S in warehousing:
- Setting order
- Systematic cleaning
Following rules like this will ensure everything, and that you will never miss anything during the count.
Apply Cycle Counting
Cycle counting will make your inventory quick and easy while maintaining accuracy. It is an inventory auditing procedure that allows businesses to count a number of items in specific areas without having to count the entire inventory of a warehouse. This is considered a sampling technique where the count of certain items is a conjecture for the whole warehouse. Here are different cycle counting techniques you can use:
- Random Sample – a number of items are counted randomly. It is commonly used in a large warehouse.
- Control Group – a company may use a control group to confirm the accuracy of the method being used.
- ABC Analysis – alternative to random sample counting and uses Pareto principle. Items in the warehouse have to be identified as A, B or C before being counted. It is basically performed with a computer.
Whatever method you use in performing cycle count, anything that works best in your company is what truly counts.
Use Inventory Tracking
Inventory tracking is a product of Windows-based applications such as SooPOS especially intended for businesses using Shopify platforms. It is a complete retail inventory management solution to lighten the load of Shopify stock managers and other personnel involved in the inventory process.
Making a good inventory can only be done by using POS system as it will help you see what items are in-stock, what are those in order, when will the orders arrive and what are the products you have sold.
The Importance of Making a Good Inventory Management
Ensuring a good inventory management will not just improve the efficiency of your brand but will also show how organize is your business. In choosing the best inventory principle mentioned above, we recommend the use of fast, easy and 100% accurate POS system for you to save more time and money.
Should you have any inventory techniques to share? We’d like to hear that in the comments!