Inventory management is one of the most difficult operational aspects for retailers, manufacturers, distributers, suppliers…etc. Keeping your inventory stocked at the optimal levels is vital and could not negatively impact your business otherwise. For instance, if you overstock, then not only will you drive up your costs, but may also end up taking valuable space that you could have used to house your best-selling products instead. Similarly, if you don’t stock enough products you may lose customers and drive them to your competitor’s stores instead.

A good inventory management process can not only help a business grow by making things faster and more efficient, but also by prevent things like fraud. Therefore, here are 3 important tips to help you manage your inventory better:

Have Alerts Set Up

Things like late purchases can really put a dent in your sales, especially if it’s in regards to a best-selling item. A good way to counter this is by having alerts set up so that you’ll receive push notifications on your computer or phone, letting you know the instant a certain product drops below the threshold quantity.  This right POS software will allow you to set up alerts with ease.

Improve Your Forecasting Skills

Being a good inventory manager isn’t just up re-filling your warehouse’s shelves to the same amount all year-round. It’s also about predicting increments and decrements in demands for each and every product. You’ll need to be able to analyse recent market trends and seasonal trends, in order to determine the quantities of products that you’ll have to keep in stock.

Additionally, when managing your inventory, you should think beyond the products that you already have in stock. You should also keep an eye out for alternate products in the market which your customers may want to buy.  For instance, if you notice that healthy snack bars are very popular among your customers, you may think about stocking up on other types of healthy snacks or even just other brands of snack bars. By losing products that don’t sell and replacing them with ones that fly of the shelves, you could definitely maximize your business’s profits.

Invest In Great Software

The days of paper ledges and manual inventory control are way past us. Nowadays, we have a whole host of different software to make every aspect of inventory management fast, convenient, error-free and efficient. Here are some examples of such software:

  • Cargo tracking – importing supplies or products from another country is a huge hassle. Cargo tracking software allows you to maintain different databases and easily keep track of date of departure, current location of items and the date of arrival.
  • Analytics – analytics software help you to understand sales trends, guide your forecasts, allow you to see which aspects of the inventory control process require improvement…etc.
  • Materials Requirement Planning – if you’re a manufacturer this type of software is a must. It helps you make quick assessments of material needs for each manufacturing process, track purchase orders, manage materials inventory and even make forecasts about changes in customer needs.

Inventory management is a very complex and demanding task. We guarantee that you’ll make it much easier on yourself and your employees by following these 3 tips.

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