No one wants to lose money or any materials on potential roles that can’t be filled or by stocking too much inventory. An inventory management system can help you prevent a variety of mistakes such as spoilage, dead stock, and storage costs. There are 6 tips to improve stock control.
- Accurate Forecasting
An important feature of good inventory management is the ability to accurately predict demand. This is difficult to do without implementing software and technology. Many variables are involved, especially with a growing company, and it is challenging to know exactly what’s ahead.
- Educate Your Staff
Educate your staff on how to improve stock control to be more effective with time management. Use their best skills and the most appropriate area to achieve productive results. You should also hold regular training sessions and workshops to make sure that the people on your payroll are doing their best work.
- Regularly Inspect Stock
You shouldn’t wait for the entire year to end to do a physical inventory count. By this time, there may be too many errors and it may seem overwhelming to resolve them. You should perform cycle counts on a more regular basis (ex. every quarter) to identify and resolve discrepancies.
- Maintain a Relationship with Your Suppliers
Your suppliers are one of your business partners and having an open line of communication will help you provide goods to your clients at the price they want and within a reasonable timeframe. When you have a good relationship with your supplier, they may proactively notify you of potential shortages and help you find solutions to meet customer demands. You should not only focus on getting the lowest price from your suppliers, but aim to build a long-term relationship with them.
- Make Smart Decisions about Slow Moving and Obsolete Items
Although it is sensible to focus on your more profitable fast-moving inventory, you should never ignore your slow-moving merchandise. The longer these items are unused and sitting on your shelves, the more they take up space, utilize labor and resources, and pose the risk of becoming obsolete. This inventory can begin to get in the way of your more popular items. You can put these items on sale or make them add-ons to related products to increase their appeal to your customers.
- Resolve Issues on Time
When you regularly monitor inventory, you will be able to identify any issues before they get out of hand. Resolve any problems as soon as you find them to improve your stock control system. You must always know how much you have, how much you need to pay, how much you will receive, and if you need to place more orders. Staying on top of these aspects will help you maximize business profits.
By: Sopheap Kheom