10 Tips For Effective Inventory Management

For each of the products you sell, do you exactly know how many stocks you have on hand?

What about the raw materials and other supplies? 

At a glance, the concept of inventory management might seem pretty simple – just knowing the number of stocks, but you know it is actually much more complicated than that!

For the business to run smoothly, you have to know the whole system of inventory from stocks, raw materials to supplies as well as the number of these stocks to be ordered for future demand. 

What is Inventory management?

It  is more than just the accounting of what you have stored in the warehouse but it involves controlling, storing and tracking the stocks from the supplier to the point of sale.

It is necessary for the business to be on top of everything, especially the management of the supply chain from start to finish.

Why is Inventory management important?

Gone are the days when manual inventory is king.

It brought a whole lot of problems.

Time was the enemy while errors were its ally.

The process had to be monitored from having to prepare for orders, doing the actual purchase to regular manual stock monitoring and replenishing stocks – a very time consuming exercise!

All these tasks take a lot of significant company time and sadly, it could have been spent in strategizing and making things work for the business. 

Not to mention the reconciliation of real time stock levels as against the point of sale, continuous lags in repurchasing when stock levels are low, resulting in inconvenience, missed  sales and unhappy customers.

Theft and pilferage is also a growing concern.

Overselling, too, can be an unrelenting problem when there is poor inventory management.

That is why it is critical to have an effective inventory management system to avoid all these.

Effective inventory management systems help businesses save time and money as well as maximize their sales potential. 

What does it take for inventory management to be effective?

The answer is POS and Inventory Management software.

Nothing more.  Nothing less.

Having this software is a turn-key solution. 

The right and effective inventory management system automates inventory processes, accurately and meticulously  tracks incoming and outgoing products and services.

It also provides the real-time data needed to make purchasing seamless and helps make important decisions. 

Hence it is crucial for businesses to reliably and cost-effectively manage their inventory by adapting to an inventory management software.

Here are some tips to consider for effective business inventory management: 

Tips For Effective Business Inventory Management

1. Choose an Inventory Valuation Method

There are different kinds of inventory methods and it is up to you to choose the best one suitable for your business.

There are three types namely: FIFO (First In First Out) , LIFO (Last In First Out) and WAC (Weighted Average Cost).

Although FIFO is the most common method there are other companies who adopt one that best serves their products.

2. Track and Audit Stock Levels

  Your stock should be well tracked and monitored.

Stock availability and assessing orders is critical.

Tracking stock levels also helps manage and monitor product demand.

At the same time make sure to audit stock levels.

An inventory management software can greatly make a difference. 

3. Know and Identify Slow-moving Stocks

If and when your inventory management software system can determine a certain stock that languishes in the warehouse for a period of time, chances are the products are not saleable anymore or perhaps there is a need to do extra effort in promoting the product to create awareness and demand.

By identifying slow-moving stocks earlier, you get to save some costs in not reordering and making sure that these stocks sell for good through promos and bundles. 

4. Understand and Forecast Demand Correctly

To be able to have an effective inventory management, understanding and forecasting demand correctly is key.

This can be done through data and insights provided for by the POS and inventory management software that would show market trends, historical sales and predictive analytics.  

BIR-accredited easyPOS is your all-in-one solution to manage your sales, inventory, and customer data in real time!

Click to Learn More.

BIR-accredited easyPOS is your all-in-one solution to manage your sales, inventory, and customer data in real time!

Click to Learn More.

5. Zoom-in On Quality Control

A strong focus on quality control is needed.

Inculcating quality control into every aspect of inventory management, and accurate  recording of the important elements of quality control, such as accurate ordering and invoice matching, is vital.

It’s also helpful to ensure that every inventory management personnel understands and adheres to the processes in place.

6. Set-up Point-of-Sale (POS) technology

POS Inventory and management software can help your business track inventory in real-time.

When products are sold, your inventory management software automatically updates to show inventory levels and the cost of goods on hand. 

As the name suggests, POS technology is utilized at the point a sale is made.

This can further be used in the manufacturing process to be able to help monitor and  track supplies and raw materials as they are utilized.

The retail POS system should integrate seamlessly with your inventory management software to help you easily track incoming and outgoing inventory. 

7. Make Use of a Barcode System

Those black bars and characters help in inventory management by encoding information that makes it faster and accurate for any business to master their inventory management.

These barcodes identify information like color, size, branch location, production and expiration dates.

They are also useful to show more visibility of the products and know about the expiring products, so it can be released ahead.

8. Be Mindful of Data and Insights

  Good decisions are derived from analysis of data and interpretation of insights.

A robust inventory management system supplies pertinent data that is relevant, helping you come up with data-driven decisions.

9. Analyze Supplier Performance

An effective inventory management software can also help you evaluate and analyze the performance of your supplier.

Are they consistent and on-time?

Do they have the best rate? 

10. Invest in POS and Inventory Management Software

Automating inventory management by using a POS and inventory management software is the only way to curb inventory issues.

It helps businesses to have sufficient inventory on hand at designated branch locations to meet the demands of customers.  

The perfect and most effective way to manage inventory is through having a POS and inventory management software.

Investing in the most suitable one can help you with the following:

• Provide accurate and up-to-date information

• Give real-time data

• Manage limited resources

• Ensure seamless processes in the supply chain

• Help in making data-driven decisions

• Save time and money

• Track accurate incoming and outgoing goods and services

• Maximize sales 

Is your inventory system a thing of the past?

Manual counting 123, does not apply anymore.

Let EasyPOS do the counting, tracking and monitoring for you! 

An effective inventory management system is just within your reach with the following benefits:

• Fast and Accurate Sales recording and monitoring

• Maintain Price Consistency

• Ease of Use

• Avoid Pilferage and theft

• Enhance Internal Control

EasyPOS lets you and your organization function seamlessly with real-time monitoring and customizable features.

Contact us now for a free assessment! https://human-incubator.com/easy-pos/

BIR-accredited easyPOS is your all-in-one solution to manage your sales, inventory, and customer data in real time!

Click to Learn More.

BIR-accredited easyPOS is your all-in-one solution to manage your sales, inventory, and customer data in real time!

Click to Learn More.