Sure, retailers have to manage their inventory effectively, but have you ever thought about the way your own business manages what it keeps on hand? Today we want to discuss five ways your business can more effectively manage inventory—and it turns out technology plays a pretty significant part in improving any inventory control system.
Implement Your Own Inventory Management System
With an inventory management system in place, you can get real-time visibility into what your inventory levels look like at any given time. This system can help you manage stock levels, sales, and order history to ensure that you don’t order too much or order too little.
Identify and Set Reorder Points and Par Levels
If you determine the minimum and maximum stock levels for each item in your inventory, you can set these levels up in your inventory management system to automatically create purchase or production orders to keep your stock in a healthy range. Again, this helps you ensure that you don’t run out or stock too much.
Use Stock Keeping Unit Rationalization to Great Effect
When you analyze your catalog and find slow-moving or unneeded or outdated items, you can easily discontinue them or put them on discount to try to empty inventory of these items and free up space for items that will make your business more money. This is the process of stock keeping unit rationalization, or SKU, and it can help you keep better track of your inventory.
Audit Your Processes and Cycle Counts
Keeping track of your physical inventory through cycles and counts can help you verify the accuracy of your records, thus helping you avoid discrepancies which could impact your ability to effectively manage inventory.
Make the Most of Your Supplier Relationships
Through establishing strong and lasting relationships with your suppliers, you can negotiate more favorable terms, lead times, and pricing, all of which can contribute to a more consistent and reliable supply chain. There is also the opportunity to collaborate with them on demand forecasting and inventory planning, all of which can help you get more of a handle on your inventory needs in the long term.
Your business’ inventory management will be crucial to the success of your organization, but it depends on continuous monitoring and adjustment. If you implement these tips, you’ll see more success than your average small business—and we can help you implement the technology to make it happen. To learn more, call us today at (646) 741-1166.