Stock control measures, mistakes, and how to fix them

Stock Control Measures Mistakes and How to Fix Them

Small businesses and start-ups face a lot of issues that other larger, and more established companies may not, and one of the biggest is properly managing stock control measures. Many sources quote that small businesses are destined to fail if they are unable to coordinate inventory control measures adequately, some sites even list this as the top reasons businesses tank. Despite this staggering statistic, there’s still a high number of startups or small businesses that don’t establish systems to manage their inventory or warehouses. Like any other aspect of business though, this problem can be avoided – even eliminated – if stock control measures are taken and your company learns how to recognize these issues immediately. Stock control measures and mistakes Some of the most significant mistakes companies make when making stock control measures, are listed here: Measuring performance comprehensively with stock control measures How are you supposed to know how well your business is doing if you do not measure your performance? How can you narrow it down to one way to measure it? The good news: You don’t have to! There are many ways to measure your company’s performance, and it’s important to figure out which way works best for you. SCENARIO: Where are you falling behind? Maybe it’s obvious your company’s performance is lacking – but if you can’t figure out how or where you’ll never be able to adjust or rectify the issue! As an example: One of the most overlooked aspects of businesses is customer satisfaction. Are you listening to what your customers are saying? … Read More

Build your Inventory Management System with asset tracking

Build your Inventory Management System with asset tracking

All businesses want to keep track of their assets and their inventory – often using an inventory management system to do so. What we mean by ‘assets’ is the sort of things that are used within the organization to help the business operate. For example, things like IT systems and computers, office equipment and stationery (photocopiers, staplers, etc.), warehousing equipment, tools (such as forklifts, trucks, ladders), as well as the people who work within the company. Inventory, on the other hand, is made up of the goods and products that the organization holds in stock to sell to customers. This inventory may be housed in a warehouse, or it may be held on your behalf somewhere else (e.g. in a distribution center). How an inventory management system works From the earliest days of commerce, retailers have needed to keep track of their stock. You can probably go back far enough to store owners who would have been using an abacus to count the items they were keeping. Then through the ages to pencil and paper and towards more recent times, when a spreadsheet would have been the most common inventory management system that was used. Since the internet inventory software solutions have become more common, with cloud-based systems being quite standard nowadays compared to a few years ago. Fundamentally, what you need to do is keep an accurate record of each item you hold in stock and how many there are. Many more elements go into how inventory management systems work – such as taking account of geographic location, seasonal predictions, … Read More

3 Reasons why an Inventory Management System is vital to business

3 Reasons why an Inventory Management System is vital to business

Any business that involves the manufacture, distribution, sale or use of products and commodities will likely be using an inventory management system to manage and control its inventory. Manufacturers and producers need to keep track of their raw materials and finished products. Distributors, vendors, and retailers want to know how much inventory they have in their warehouses, physical stores, and other sales channels at any given time. Even organizations that don’t necessarily engage in the sale of goods apply inventory management processes to monitor and regulate the use of company assets. No matter what type of business you run, inventory management systems are essential in helping manage and control inventory so you can increase workplace productivity, control costs, and realize more profit. So much time and money can be wasted when optimum inventory levels are not achieved, which is why business owners and inventory planners put a lot of effort into having an efficient inventory management system in place. Excess inventory means operating capital sitting idly when the money could have been put to better use. On the other hand, insufficient inventory can cause a business to lose customers due to out-of-stock situations. An inventory management system helps businesses make better projections by integrating all supply chain processes to prevent any of these undesirable scenarios. How an inventory management system helps grow your business 1. An inventory management system optimizes cash flow A healthy cash flow ensures seamless business operations. Especially for small businesses that do not have a significant operating capital to work on, having just the right amount … Read More

Inventory health check: How to improve inventory management

Inventory health check- How to improve inventory management

Business executives understand that effectively managing their inventory is important but often are at a loss as to how to improve inventory management. Many base their decisions on assumptions that aren’t necessarily true. Two examples: the belief that the best way to reduce inventory is to improve the accuracy of sales forecasts, and that good customer service requires high levels of inventory. Both of these assumptions can lead to problems. Achieving optimal inventory levels is vital. Not only does it reduce costs, but it can also serve as an indicator of the overall financial health of a company. Attentive analysis of the factors involved can help you to improve inventory levels by 20 to 50 percent. So, how healthy is your company’s inventory management? The following ten questions will help you assess the effectiveness of your organization’s inventory control practices, and discover how to improve inventory management control within your organization. Your inventory health check starts here: 1) Do you set these three inventory levels for each item: Safety, replenishment and maximum? Safety = The minimum amount of stock needed to ensure that you won’t be caught short if you encounter a problem in the supply chain, such as a manufacturing glitch or delivery problem. Replenishment = How much to order at regular intervals (e.g. every two weeks) to replenish stock. Maximum = The maximum amount to keep on hand. Breaking it down this way helps you to make intelligent decisions about what are appropriate inventory levels, and thereby improve inventory management. It ensures you will rarely have out-of-stock problems, … Read More

6 Reasons why inventory management will help your business grow

6 Reasons Why Inventory Management will Help your Business Grow

Find out why more ecommerce start-ups are turning to inventory management to grow their businesses into multi-million dollar enterprises. Starting your own ecommerce website in today’s market might seem like a very daunting task. Going up against the already established businesses is not easy. Furthermore, matching the low prices offered by these veteran online merchants is a difficult prospect for startups that might not have enough financing to ride the wave until they start breaking even. Ecommerce startups must find a viable way to exist and thrive in this competitive market. That is why it is imperative for ecommerce startups to integrate multichannel selling in their business models. Not only will this help counter the competition, but it will also help them reach potential customers faster. Where does Inventory Management come in? Using multiple platforms to sell your products has many advantages for ecommerce start-ups. It allows you to increase revenues while giving your business opportunity to grow. However, it is not exactly an easy process for small businesses. Different platforms offer different levels of competitiveness, and you might have to tailor your prices to reflect that. Related fees may also vary across the platforms. So, how do you know how much profit you are actually making? Keeping track of inventory will further compound the problem. Let us say you have 20 items in stock, and you put them up for sale. You sell 15 of these on your site but then receive seven orders of the same from your listings on eBay and Amazon, for example. However, you have not yet … Read More

4 Best practices for efficient inventory management

4 Best practices for efficient Inventory Management

Maintaining proper inventory levels is never something we think about when we start out in the business world. We’re too worried about the sales funnel, repeat customers, and where to spend our profits. But we quickly find that inventory management is very important. If your company’s inventory management system is constantly letting you down, there’s no time like the present to upgrade. You can turn this area of weakness into a strength. Inventory management can also help reduce costs which will contribute towards improving profitability. Here are four best practices to install in your business to improve your inventory management: #1 –  Invest in inventory management software immediately Digital technology is not a passing fad. It is a necessity for any business. This extends to your inventory management system. If you are still using paper bookkeeping methods and order forms, an upgrade is necessary. Too many businesses are moving too fast to keep up without digital intervention. You’ll thank yourself in the long run. You will cut down on manual processes and can then use those vital staff-hours for more profitable endeavors. When you choose inventory management software, you can: Eliminate paper record keeping Enable more corporate social responsibility through helping the environment Provide accurate inventory counts Follow a product along the supply chain. #2 – Make better forecasts with inventory management system data When you use digital technology, data becomes your ally. The trick is to determine what data is important. Big data is a term people often throw around in regards to inventory management. But just because it’s listed on … Read More

Can inventory management software really help distribution?

Can Inventory Management Software Really Help Distribution

Why is inventory management important? Inventory software makes managing and tracking stock simpler and more efficient. It can also reduce carrying costs. It is vital for distributors to track goods throughout the supply chain. However, accurate inventory management software can offer even greater value. The advantages of inventory management software: 1. Supply chain information: By using inventory management software, you can gain a lot more valuable information about your business. Inventory management software provides you with ‘supply chain visibility.’ In simple terms, it allows you to track inventory at each stage of the supply chain. For example, when it is fully optimized, the software can provide you with information regarding your inbound and outbound product flows. This information can enable you to plan, organize, or take action if necessary. It can also allow you to analyze all of the details, which helps in making strategic decisions, not to mention forecasting future demand. 2. Quality management: With both durable and nondurable goods, there can be problems. In both cases, there can be delays. For perishable goods, this can have a severe impact on their shelf life, giving you a limited amount of time to sell the products before they expire. On the other hand, even with durable goods, delays can cause problems especially if the products are seasonal. For example, if your shipment of Christmas ornaments arrives in January rather than December, you will have missed peak demand and most likely will be forced to sell at considerably reduced prices. Equally, perishable and durable goods can arrive broken, and this can be … Read More