Inventory management for small business tips
How can one successfully manage inventory if you have a small business?
If your firm requires you to keep an inventory, it can be quite tricky to balance and control your stocks. While you can count and track products and raw materials by hand, you need an accurate program to streamline your inventory management for small business and ultimately improve your efficiency and productivity.
Software solutions, bar coding, and mobile technology cut down the costs, effort, and time it takes to get the most realistic inventory size for your business.
An inventory control system involves various processes like tracking, recording, restocking, purchasing, and delivery. Knowing where your stocks go and how much you have in real-time is a critical part of your business.
Why have inventory management for small business?
Keeping stock costs money and you must maintain your products and raw materials to a certain level to prevent high warehouse costs and spoilage. If you’re into manufacturing you also need to keep just enough stock to satisfy customer demand and to continue production.
Optimizing your stock-keeping by employing an inventory tracking for small business system, can free up capital that you can use to pay for operating costs. Moreover, having just the right amount of stock means it is much easier to track items and prevent unnecessary losses.
How to improve inventory management for small business?
Try any of these inventory tracking for small business tips if you want to improve your stock levels and control:
TIP #1: Get a scalable and automated solution
If you are a small business owner or start-up, you can opt for an efficient and scalable software solution to manage your stock from early on. By using this solution on top of regular manual inventory counts and inspections, you’ll see a big difference in your warehousing savings and inventory turnover. In addition, an adviser or consultant can help you set up the inventory system and determine the most cost-efficient stock level for you.
TIP #2: Invest in a system with integration abilities
Be wise by investing in good inventory for small business software that can be integrated with your Accounting system, point-of-sale (POS), as well as allow you to communicate with your trading partners via electronic data interchange (EDI). This way, you won’t have to worry about not being able to fulfill fast-moving and highly-perishable stock. You can simply notify your supplier for additional orders once items fall to levels that are low.
TIP #3: Perform regular inspections and tally
Regular counts can ensure that accounting and inventory tracking for small business are consistent. You’ll get an idea how much of your inventory goes to waste, how much you lose, and how much you sell in a given period. Also, employ a good stock control system. You can choose to sell based on “best before” dates to prevent spoilage for perishable items.
TIP #4: Organize inventory and train employees
Inventory management for small business will be more successful if you can implement a standard way of bar coding, arrangement, and control early on, and communicate this process to the individuals who handle stock the most.
Because of this, it is important to adapt a system that is simple to learn and carry out. Assign dedicated people who will check stock levels, manage returns, and update inventory. Make sure that everyone has a thorough understanding of how the inventory tracking for small business works and how to reconcile it with other systems every time.
TIP #5: Pick the right suppliers
With efficient inventory control in place, you must be confident that your suppliers and trading partners will be able to fulfill your orders for fast-moving inventory immediately. You don’t want to end up short of stock when customers are ready to pay for your goods. Choosing multiple suppliers ensures that you can restock immediately.
Small companies and start-ups can streamline their inventories to improve efficiency and production by setting up an inventory management for small business system.
Talk to an expert to improve your efficiency and production.