How to manage stock inventory: Top tricks to boost efficiency
Many factors go into running an efficient business, but one of the most important considerations is the way you choose how to manage stock inventory.
To maintain a smoothly-run, efficient inventory system, it’s important to track how often the inventory turns, that is, how many times you sell through your entire inventory (or whatever is financially equal to that). Many companies track this differently – some calculate it monthly, others choose to do so weekly or quarterly.
Whichever you choose, calculating how often your stock turns and managing your inventory will help you keep your budget in line, learn how often to reorder, and teach you which products work best for your company.
Check out this list below for tips and trick on how to manage stock inventory:
How to manage stock inventory: Know your market & know yourself:
- No one knows your products or needs better than you, but make sure you’re considering everything when determining your inventory. One of the best ways to manage inventory is by meticulously acknowledging the types of stock you have. Do you only have finished products? Do you need to have raw materials on hand to create your products? Make sure you always have the right amount of product on hand.
- Keep a sharp eye on the market. You know what works for your store and what doesn’t, but make sure you’re also tracking inventory trends happening around you. If you notice some items flying off the shelves while others are sitting dormant, adjust your inventory.
- Make sure you’re always staying true to your business – If a supplier is pushing a trendy product at a great price, but you know that product won’t work well for you, just say no. The last thing you want is a product that won’t sell sitting in your inventory.
How to manage stock inventory: Shelved-goods is your friend:
- When determining how to manage stock inventory, it’s important to consider all factors. How much storage space do you have in your warehouse? How quickly do your suppliers restock your inventory?
- Keep smaller amounts of product on hand if you know supplies are quickly available. Similarly, leave room in your stock room for larger quantities of products if you know turn around time for re-order is slow.
- Keep a tight grip on what your minimum stock level should be and reorder as soon as you hit that number. Keep detailed descriptions on each item you stock so you know reorder times for each particular product.
- Practice First-in-First-out inventory management, that is keep shelved goods on hand – especially if you have perishable inventory. Take note, though: the more inventory you keep in your stock room, the more you’re likely to pay for insurance.
How to manage stock inventory: Keep it meticulous & secure:
- One of the best ways to manage stock inventory is to stay meticulous in the way you track your products. Start an optimized process as soon as you can. Whether you choose to manually track your inventory or invest in software that does it for you electronically, establish a standard for tracking immediately.
- Use either physical cards (for manual tracking) or Radio Frequency Identification (RFID) scanners to keep a detailed track of each items’ description, location, value, and supplier. This can help you keep an organized stock room, but also can let you know when and how to reorder each item in your inventory.
- Your inventory is vital to your company, so protecting it should be a top priority. Keep a watchful eye for thieves and shoplifters. Consider installing security measures or set your RFID scanners to sound an alarm if someone without clearance moves inventory. Don’t be afraid to put your inventory in a secure area and grant access only to trusted employees.
Talk to an expert now for advice on the best stock inventory management software.