How to Keep Track of Inventory For a Small Business.
Inventory is the products that your company buys but does not sell immediately. One of the most important parts of any business big or small is inventory, it shows you whether you are making progress. Keeping track of inventory gives a clear insight of how business is going, it tells you what product is moving, what is not, when to buy more. In a perfect world business wouldn’t even have inventory because you would just have products that you sell immediately but that is not practical business need to have extra inventory to meet special needs such as sudden high demand, late shipments or stock up on products that are going out of production Keeping track is absolutely necessary especially for small businesses. Here are a few tips on how to keep track of your inventory.
Table of Contents
● Establish a Clear Business Forecast.
A reasonable business forecast is very important for tracking your inventory.fthe forecast should indicate the goals of the business in the future. The forecast should be based on your business history,previous sales,market structure and also availability of certain products.stock up on what is fast moving and products that are going out of production.
● Apply a First in First out(FIFO) System.
Goods should be sold in same order they came in.This especially applies to perishables things such as food,flowers make up and skincare products that can expire.even with the non perishable things its also a good idea to apply this rule since the longer the product stay in stock for too long may end up being damaged or outdated.the best way to apply this rule is my organising your store/warehouse in such a way that when the new stock come in its put in the furthest end of the store and the older stock is near the exit.
● Identify The Non Moving Stock.
This is stock that has not sold in more than six months.once you have identified the low turn stock come up with strategy to sell the stock quickly,you can discounts of that specific item,you can sell at buy one get one free just come up with a good strategy to get rid of the stock first and then do not restock that item.
● Get a Pouch Coding Machine.
thanks to technology now you don’t have to take stock manually.you can get a pouch coding machine that you can use to take inventory as it come in.you can connect a barcode reader directly to you point of sale and you can keep track of what is moving more and what is not.this is a much more accurate way to keep up with your inventory.
● Hire Stock Controller Professionals.
stock control is the activity of checking the available stock of a business.this activity ensure has the correct amount of stock a business needs is available.if you have a huge inventory you will need to hire a professional who will handle all the inventory.a stock controller keeps record of inventory as it comes,sales and makes sure there is available stock for the company all the time.
● Adopt a Drop Shipping system.
this a method where a company doesn’t necessarily have products in stock.a company purchases product from the manufacturer or wholesalers when a customer purchases them.the seller does not even need to handle the inventory the products can be shipped from the manufacturer directly to the customer.this a good way to manage inventory since you don’t have to worry about storage the only thing you require is a reliable shipping company.Most online business adopt this system of business due to lack physical store.
● Use Cloud Based Inventory.
use a software that offers reeltime update on inventory.square software can be connected directly to you point of sale so it automatically update the inventory status.this will help you identify the first moving products and help you know when is time to restock and what should restocked what should be upsold and what should be discontinued.this is the most important information any business can have.it will even help idefit your weakness and strengths as a company
● Conduct Inventory Audit Regularly.
even when using the latest software to track inventory is always key to keep count of your inventory so you can really know what kind of inventory you are working with.most business conduct this inventory weekly monthly and others annually.regardless of how many machines to have to keep track of inventory make it a point to count your stock physically just to be sure.
● Order Inventory Personally.
it might seem easier to just hire someone to do all things inventory,but doing inventory oder yourself is one sure to make sure you inventory is in check.it prevent theft,and you can inspect the quality of products being delivered.through this you be able to identify unreliable suppliers and will also save you money you would have paid someone else to do it for you.
Conclusion
proper management of inventory can make or break a business.proper management of inventory helps reduce general cost of the business and it also improve cash flow.keeping track on your inventory in real time help you make prediction of future demand and stock up accordingly and therefore meet the demand of your customers.keep track of inventory can save you a lot of money in excess stock which eventually is damaged or goes bad especially perishable goods such as flowers foods or beauty products.proper management of inventory may help you maximize on you storage.in short inventory management should be taken very seriously.
