If you sell products, you have inventory that needs to be managed. In fact, this is a very important part of running a successful business, which is why you should understand the ins and outs of handling your inventory. Here are a few tips to help you effectively manage your inventory for your business:
Use the right type of software
What you should always be doing in any area of your business is making sure things are streamlined. We no longer keep piles of documents and papers as our only means of records and we no longer walk through our storeroom with a notepad in hand to make sure we have everything we need.
Instead, with all of the technology available at our fingertips, we streamline processes so we can easily understand what’s available and what’s not, what needs to be restocked and what’s not selling. Whether you sell on Amazon and use things like FBA inventory reimbursement or you have an in-person store and manage inventory through sites like inFlow, it’s important to use tech to ensure your company’s success.
Manage your restocking
Some businesses leave it up to the supplier to handle inventory reorders. However, it’s best if your business manages it in-house. After all, you know what’s selling best and what you need for the next order—at least, you should know. Analyze sales data regularly so you can keep up with the inventory that has the most demand.
Check out your suppliers
Before you start doing long-term business with a supplier, you should make sure you can trust them to deliver on time. After all, if your business is built around your products and you have a high demand for it, especially in certain seasons, you want to make sure that you’ll always have the inventory you need, when you need it.
Keep in mind that with Covid-19 impacting supply chains around the world, things may be more challenging in the world of suppliers, so take a look at a supplier’s track record to make sure you’re doing business with a reliable provider.
Don’t be afraid to audit your inventory regularly
While you may do an in-depth count of inventory every year, it could be helpful to do so more regularly. Understanding the amount that you really have in stock and calculating what’s needed and what’s not helps you manage the supply and demand well.
Customer satisfaction has a lot to do with meeting their demand and you can only do this if you have what they want in stock.
Consider adding new products
You see how well your products are performing and you have enough inventory to meet the demand. Things are running well and it’s apparent that your customers love what you have to offer. If this is the case, consider adding to your inventory with new products.
In many industries, you don’t just sell one product and that’s it. You’ll want to continue to meet demand to stay on the cutting edge of your industry. Do some market research in your industry so you can understand what’s trending. If you haven’t already, hire a data analyst to help you understand what’s needed.
If you want to be successful in your industry, you’ll need to be organized. You’ll need to make sure to track progress, keep an eye on your stock, and be prepared for any issues in the supply chain.
Running a business isn’t easy, but when you prioritize managing your inventory, at least you can know you’ll always be able to meet customer demand—which is where much of the secret to your success lies.