The phrase ‘flushing money down the drain’ can feel like a reality if your inventory isn’t managed properly. Managing inventory can be daunting, but the feeling of losing money because of inventory can be even worse. Mistakes from a stock take can be costly: dead stock lying around the warehouse can take up storage costs and lose money, and items that expire or spoil will also send your accounts in the wrong direction.
It’s time to pay attention to what’s going on in your warehouse and make your inventory save money for you. Let’s see what inventory management techniques can help put a few more dollars back into your accounts.
Use a dropshipping service
Dropshipping is a cost-saving service that can alleviate inventory management problems, overhead costs, and a substantial portion of the supply chain management. Dropshipping is essentially a retail fulfilment method. It lets customers purchase products on their online platform, but it doesn’t actually house the product in a warehouse. Rather, once the order is placed, the store purchases it directly from a third party vendor and it gets shipped directly to the customer. The means the store who sold the product never sees, handles, houses or ships the item.
Dropshipping is a strategic way to reduce costs and save money in the inventory management space. Dropshipping is a popular business model if you want to run a business but don’t want to just spend time and money on operational costs. It allows you to reduce these components and invest money into other aspects of your business, including customer acquisition.
Organise your inventory into categories
By dividing your inventory into distinct categories, you can help prioritise your stock’s place in the warehouse. When you’re doing your next stock take, look at items in a different light. Use inventory categorisation methods such as ABC, FSN or SDE to group your stock.
Adopy cloud-based inventory management software
The scope of online inventory management software has grown exponentially in the last decade. Because it tracks inventory levels in real time, you will always know the exact amount of stock you have at any given time. This means there is more readily available knowledge on the health of your warehouse at all times. You’ll save money by only reordering stocks when it’s absolutely necessary . It’s a small initial investment, for huge amounts of savings in the long run.