10 Best stock control software tips for inventory management
Wondering how the big businesses do it? Here are some of the best stock control software tips to help you manage inventory more efficiently.
Various experts have defined inventory stock management as the process of coordinating and supervising the supply, storage, recording, and distribution of stock. The aim of which is to maintain adequate stock levels, enough to satisfy demand without any over-supply or loss. By decreasing the amount spent on inventory, the best stock control software helps companies maximize their profits.
However, all businesses suffer from some degree of inventory stock management problems. The most common cause of this is “shrinkage,” which is caused by theft and administrative errors. Shrinkage accounts for losses that amount to at least 1.4 percent of all sales per annum. While the best stock control software focuses on cutting down human or administrative errors, it is still important to know how stock levels can affect your company.
This is especially true for businesses that are trying to expand their operations. Inventory stock management can affect how much the company makes, as well as customer satisfaction in your products and services.
The best stock control software tips
Here are ten inventory management tips that can help your company improve its inventory stock management:
1. Check all your stock
Every time a supplier delivers new stock, your first step should be confirming that it is exactly what you ordered. This rule applies to both the number and quality of the delivered inventory. This might seem like an obvious point, but at least two percent of deliveries are packed incorrectly.
In such a case, you will get short stocked once the orders start rolling in. In turn, this can make you lose sales and credibility with your clients. Alternatively, you might receive more stock than you need, leading to massive losses in the long run.
2. How do you store your stock?
If you are receiving large shipments of inventory, it may seem easier to store it wherever it fits. However, this approach could make it a lot harder to keep track of the product. This issue is further compounded if you have similar products that have packaging that is nearly identical. As a result, staff could easily make a mistake while in a rush to fulfill orders.
3. Label products clearly
Each product that is in stock must be clearly marked to show important details like its name, quantity, and basic description. This tip is especially important if your stock is made up of products that are available in different sizes. Clear labeling makes it easier to identify items and prepare comprehensive order forms. As a result, errors will be eliminated, and product tracking will be done much easier.
4. Keep track of product expiry dates
If you offer perishable products, then you will be liable if your customers receive any expired goods. Therefore, it is essential that you develop a system that keeps track of the best before dates for each product line. Such a system will help you know when to lower prices or offer sales that will clear such stock before it expires.
You must also check the expiry dates of any outgoing offers before product packaging. As you will often have multiple batches in stock at the same time, it is crucial to ensure all the various products are from an “in-date” batch.
5. Do not magnify problems
If a customer receives the wrong product, then take the time to change the appropriate stock levels. Although it seems like a pretty obvious tip, it can be overlooked quite easily in the pressure of running an ecommerce business.
6. Define the minimum inventory level
Every supplier has different lead times, with some that could run up to 90 days or more. Therefore, you must be well organized to avoid running out of stock. How long does it usually take to restock? How long does it typically take to exhaust your minimum stock? Furthermore, factors like consumer demand and business peak times must also be considered.
Answering these questions will help you place your restocking orders well in advance. Such forecasts will help you keep the business going forward and avoid putting up the dreaded “out-of-stock” sign. Any forecasts done should take factors like market fluctuations and customer demand into consideration. It is also a good idea to keep a buffer amount of inventory to cover any delays during restocking.
7. What are your priorities?
Tracking inventory is a very long and tiring process. Therefore, it helps to keep your priorities straight. For instance, only 20 percent of your whole inventory generates up to 80 percent of your total demand. Therefore, it makes sense to set up inventory stock management strategies that prioritize those products.
8. Improve the returns policy
The most challenging inventory management tips revolve around returns. It is a huge concern, especially for retailers in the electronics and fashion industries. If any stock is returned as defective, make sure that stock levels are not adjusted upwards. You should also account for it with the relevant suppliers.
9. Conduct regular checks
Regular spot checks will help you spot any mistakes fast, whether it is that you notice defective inventory or are running out of stock. You might not be able to check it all at the same time, but you can review your inventory levels on a regular basis.
10. Automate to the best stock control software
The easiest way to manage inventory is by using a fully automated solution. However, how do you choose the best stock control software for your firm? The best stock control software provides certain tools that can help you manage your inventory in a timely and efficient way.
It also reduces the need for manual work which in turn reduces error and increased productivity. Some of the best systems also have cloud-based solutions to make this data available anywhere you go.
The final word on best stock control software tips
These inventory management tips represent small changes you can easily make that will impact your business significantly. Not only will you see a sharp rise in efficiency and productivity, but you will also notice an increase in revenue. These inventory management tips are an excellent way to stimulate your company’s growth and improve your bottom line.
To take action and improve your bottom line, talk to an expert now to help you choose the right software.