Implementing best practices for inventory stock management is beneficial for almost every company. Streamlining processes and creating efficiency while having up to date data about your inventory stock can be essential for keeping track of your business’ health and it directly impacts on your bottom line. Here we bring you the four best practices of sound inventory stock management.
To lay the foundation of effective inventory management is to properly categorise your company’s assets. Defining variable versus fixed assets is a broad categorisation, but you should also categorise assets based on a system that makes sense for your company, whether that means categorising assets by use, by department, value, or some other metric. Storing all of this information in a central asset database is the key to maintaining precise control over your inventory stock, as it allows you to quickly finding the information needed, and analysing the data collected to further optimise your inventory processes.
Download Inventory Software
Say goodbye to labour intensive inventory management. Every business should strive to remove human error from inventory stock management by taking advantage of downloading inventory software. If you have not automated your inventory management processes, you are inherently asking for a major headache. Asset tracking systems such as inventory stock software help save time by streamlining inventory management processes, simplify documentation, and maintain accuracy beyond what’s achievable through manual inventory control processes.
Set Safety Stock Levels
Inventory stock management is made easier by downloading inventory software. You can set safety stock levels for each of your products. These are inherently the minimum amount of inventory stock that you need on hand at all times, to never miss out on a sale. When your inventory stock falls or gets close to these safety levels you will be alerted to order more. It is important that this is revised, especially with seasonal products. You will need to adjust their safety stock levels so you do not have too much inventory stock on hand especially in markets that are prone to market fluctuations.
Reconciliation in inventory management is extremely important. Although it is efficient to download inventory software, it is vital to make sure that the automated reporting match inventory levels. This can be done by physically counting your entire inventory at once. Many businesses do this yearly, however, if you find discrepancies, it is best to couple this with spot checking.
Inventory management is the life line of any business. It is critical to understand best practices and techniques to overcome the shortfalls of mediocre inventory management. This can be done by taking into consideration these four best practices and especially by downloading inventory software for better management. Streamlining processes now saves negative implications later. Not only will these best practices save you time, they may directly impact your company’s bottom line.
Article by Melanie Chan in collaboration with our team of Unleashed Software inventory and business specialists. Melanie has been writing about inventory management for the past three years. When not writing about inventory management, you can find her eating her way through Auckland.