Keeping an inventory can be a daunting task for any business. It can be both tedious and confusing, especially if you don’t know how to do it properly. But a proper inventory not only ensures that you keep track of all of your stock, it also provides a way for you to maximize your total income by guaranteeing that all of you stock is sold. While there are a many inventory management techniques out there that can be applied, all with varying levels of efficacy, there are eight basic, fool-proof guidelines on how to manage your inventory well. Here’s what you should know:
Eight Fool-Proof Ways to Manage Your Inventory Like a Pro
Inventory management promises two things: long-term savings and added cash-flow. This applies to all business, regardless of size. But not everyone employs proper inventory management techniques that guarantee visible and efficient results. If you’re a new business who wants to keep up with the competition and ensure a steady flow of profits, or an established business with a stagnant or ineffective inventory management style, here’s eight ways you can do it right, and why:
1. Apply the FIFO Principle
FIFO (first in, first out) is one the cornerstones of a proper inventory. Commonly applied in the food business and in any other setting that deals with perishable products or stock that may expire, it is one of the foolproof ways to ensure that you do not unnecessarily collect stocks that are unsalable. Simply put, the oldest products should be at the forefront of circulation, so they are replenished constantly by newer stock.
2. Be Finicky About Categorization
A business will have to deal with more than just one type of salable item and will have a roster of different stocks of varying demand. Categorizing them in terms of importance (the most sellable being the most plentiful, the least in demand being slated as ‘backorder-only’ or as ‘sold-on-demand’) ensures that you don’t invest in things that will not guarantee you a sure profit.
3. Always Check (and double-check) Your Inventory
It pays to always know what you have on hand, so checking your inventory on a regular basis is a must. Small businesses can usually get away with a yearly or annual assessment of their stocks, although larger businesses can benefit more from a bi-monthly or weekly assessment to ensure that stocks are always moving and you aren’t left with unsellable goods.
4. Set Limitations to Pre-Existing and Incoming Stocks
Set a minimum amount for on-hand and incoming products so you don’t needlessly collect unsalable products. It will require a little work to figure out which products sell fastest, which products sell at a slower rate but still have fast turn-over, and which products aren’t worth stocking up on at all.
5. Always Have a Contingency Plan
Sometimes, no matter how much you configure your inventory, there will be unexpected twists due to the unpredictable nature of the market at large. Always be ready for things like unexpected sales spikes, sudden product discontinuation, or product unavailability due to supplier limitations. Backup plans for these scenarios will ensure that a popular and highly scalable product will always remain on the shelf no matter the circumstances.
6. Consider Contract Packaging
If you have a flagship or trademark brand that you produce, consider contract packaging services. Contract packaging services involve outsourcing the production, packaging, and distribution of trademark products so that it appears as though it is produced on-site. This helps avoid stockpiling perishable goods or products with a slow turn-over, while simultaneously maintaining your own brand presence.
7. Digitize Your Inventory
Keeping track of, and updating a manual inventory is a very daunting task. Thankfully, the digital world comes to the rescue. If you want to streamline your inventory to make it easier to update, manage, and check, you might want to go digital. Make use of Cloud-based inventory systems that help to make keeping track of things more efficient. There are a large number of free and paid apps available online that can help you manage your inventory in real-time.
8. Consider Outsourcing
If you find that doing your own inventory is far too bothersome to deal with even with the help of apps, you can always consider outsourcing the task to professionals who will take care of everything for you.
Here at BUILD Industries, we understand the need for reliable, efficient, and versatile contract packaging services. Understanding that our workers are the backbone of the industry, we offer supported employment programs. These make contract packing by disabled Americans in Los Angeles a possibility.
We believe that each individual deserves the right to earn a living to empower their life. Our contract packing by disabled Americans in Los Angeles delivers a higher standard of quality and reliability than conventional services and provides them with a stable and dependable livelihood. For more information on how your inventory and contract packaging requirements can help better lives as we help your business flourish, visit our website.