How Much Do You Know About Your Inventory?

Inventory is one of the most important assets of any company, yet many business owners are in the dark about their stock. Without a clear understanding of inventory, it’s easy to run out of stock or unnecessarily overextend your business. How much do you know about your own inventory?

What Inventory is Most Popular?

Every business should know which items in their inventory are the most popular and which items move more slowly. This is easily determined by monitoring sales figures or by adopting more advanced inventory management software.

You may find the most popular items vary according to the time of year. For example, an office supply store might shift very few pencil cases during the year, but sell massive volumes in August, as parents stock up before their children go back to school.

Identifying an item’s popularity or unpopularity at any time of year can help you predict demand. This way you can order the right amount of stock at any given time. This makes you less likely to generate excessive surpluses or sell out of popular lines.

If you want to eliminate doing more work on your end, choose a 3PL partner like The Apparel Logistics Group. You can rely on them cycling count throughout the building to maintain accuracy, so you’re never guessing at your numbers.

What Inventory is Sold Out?

Despite careful planning, sometimes inventory sells out. Perhaps your supplier runs out or your company fails to manufacture enough goods to meet demand. It’s important to keep track of the situation and take action.

Most customers will not mind small delays if they have a reasonable expectation of their delivery time. Label out-of-stock items, in your online store and on the shelf, as backordered. If possible, tell customers when the item will be in stock again. These measures help build anticipation and urge your customers to buy with you and not look for a similar item elsewhere.

Because popular goods can sell out quickly, pad expected delivery times for these items. Customers will not mind getting their goods earlier than anticipated, but late deliveries will cloud their opinions of your customer service.

Are Your Suppliers Delivering?

Simply ordering new inventory is no guarantee you’ll receive it. It’s not uncommon for suppliers to fail to fulfil orders, send less than required, or send goods in an unsaleable condition. Make sure you follow through on your orders and watch your suppliers’ performance. Many inventory management systems make this process easy. When you encounter unreliable suppliers, take steps to resolve the issue, either by discussing the problem with them or finding new providers.

Are You Organized?

Organization is the key to staying on top of your inventory. Organization methods vary depending on the type and size of a business, but it’s important to have them in place. Small firms may find simply alphabetizing inventory collections works well, while larger firms may look to inventory management software and partner with TALG; we use RF guns during the receiving to ensure the organizational process begins properly. Experiment with a few organizational approaches to find one that works for you.

If you don’t have a handle on your inventory, you may find empty spaces on your shelves or accumulate a surplus of stock. A clear understanding of inventory is essential for good business management.

Posted: 8/3/2015 1:23:28 PM by Global Administrator | with 0 comments

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