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Balancing Your Inventory with Efficiency

Finding the right balance for your inventory can be a tricky task.

If you don’t have enough of a high demand item, you’ll lose out on sales. It is also expensive and time consuming to constantly restock your inventory. In addition, it’s usually more cost effective to buy items in bulk—if you only buy a few high demand items at a time, you could be spending extra money.

Overstocking causes problems too—if you have too many of one item, you will waste storage space (which isn’t free) and you will lose money on the cost of unsold items. So how do you find balance between being efficient and keeping costs down? Follow these tips:


Keep Accurate Records

You can’t manage what you have if you don’t know what you have. It is easy to miscount items—there is always a risk of human error. Eliminate this problem by using electronic tracking tools like bar code scanning. Another good way to make sure your records are accurate is to double-check your inventory from time to time. You don’t have to go through everything in your warehouse. Just pick an item, and make sure your records accurately reflect the amount in storage.


Collect Useful Data

Tracking your sales will make it much easier to decide how much of each item to stock.  Does one specific item sell very well at a certain time of year? Are you running out of something all the time? Have other items been sitting in the warehouse for years untouched? Track your sales so you can plan for the future, and stock up accordingly.


Use Professional Tools

If you are tracking all your sales and keeping your records in an Excel spreadsheet—you’re bound to run into trouble. Make sure you are using professional software to manage your records—it will be easier to use and provide more accurate results. Many professional programs also give useful analysis of data.

You may also want to consider having your inventory professionally managed. This leaves you time to focus on other aspects of your business like improving sales, creating new products, training staff, or launching a new marketing campaign.

For even more advice about managing your inventory, visit this website.

Managing your inventory is a substantial task, but keeping accurate records, collecting data, and using professional tools will bring you success.

 

Posted: 1/21/2015 12:54:06 PM by Global Administrator | with 0 comments
Filed under: chain, inventory, logistics, manufacturing, supply, 3PL


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