Inventory stock management is the life line of many businesses. A better understanding of how to manage inventory stock is critical to any successful business but many are putting their businesses in shortfalls. Are you guilty of making these five inventory stock management mistakes? If so, here’s how to avoid them.
Inventory stock management can be arduous if you are currently using Excel or other manual processes to track your stock. Not only are you being inefficient, your business is wasting precious resources like money and time, by sifting through paper. This way of working is also prone to human error. Research shows that even a very good data entry operator will make an error for every 300 characters entered and that level of inaccuracy can cause monumental problems for hundreds or thousands of products. Download inventory software that lets your business get automated to better manage your inventory stock management systems. Furthermore, Excel and other manual processes do not operate in real time nor do they allow for multiple users to access them at the same time. Download inventory software where an automated system avoids this situation and allows for full efficiencies.
Not investing in training
It’s all well and good to invest and download inventory software for better management, however if you are not managing change effectively or investing in training your staff in how to use this software for maximum efficiency it can be somewhat of a waste of money.
Inefficient stock taking
Inventory stock counts can be hugely expensive in terms of time and resources. If you need to stop warehouse operations for days to physically count items and make sure the count matches data stored in your processes you are wasting valuable time and effort. Businesses are much better off spot checking inventory levels in one section on an ad hoc basis. With the use of technology and barcoded inventory stock management systems, accurate data is just a scan away.
Not using reordering points
Reorder points, otherwise known as minimum and maximum levels of inventory stock, are the best methods for ensuring you have the right amount of stock in your warehouse at all times. Too little inventory stock means losing out on sales where as too much stock can see your business cashflow tied up in inventory that will not be sold, which can be very costly. Many businesses struggle with their cashflow. A great way to solve this from an inventory perspective is by ensuring you have set the right reorder points for all your inventory stock.
Not having your warehouse in order
Placing inventory stock in the warehouse in an organised manner can create greater efficiencies. Too many businesses have unorganised warehouses and this is costly. The items that you sell the most or send out the most should be right next to where orders are shipped out. This keeps your employees from having to manoeuvre all the way across the warehouse to pick inventory stock every time that stock is going to be sent out. Especially in growing businesses, we see them just putting things in where there is space. This works for the short-term but the long-term implications are that it can be a logistical nightmare. Initial thought and planning in the beginning can save you huge efficiencies in the long run.