Running a business is not a joke. You need to constantly evaluate your business on a regular basis to check if everything is running smoothly. One of the most important parts of any product business is the inventory control system. It is the basis of a well-functioning business.
Inventory management softwares tracks the lifecycle of stocks as they come and go out of your business. Problems can start when businesses do not have control over their inventory and stocks. When you aren’t aware of your stocks, you cannot make informed reorder decisions. You will also have to refrain from listing the orders online as you don’t know how much you have to dedicate to each channel.
Hence, you need to have a solid inventory control system to succeed in any kind of e-commerce, brick, and mortar, multi-channel and omnichannel.
Importance of Inventory Control System
Many businesses fail to update their inventory control methods because setting up a new tracking management system can take a lot of time and energy. Also, it is very tempting to just focus on other things like marketing. Although, there are some benefits of taking your inventory management into control.
Some research suggests that 70% of shoppers choose a competitor rather than waiting for back-ordered items. Thus, better inventory management can help you not miss out on such sales.
A survey says that 65% of buyers have shifted from a brand because of one bad experience. However, good inventory control can help to add more value while retaining loyal customers.
It is important to have the right amount of stock at a given time so that you are not overpaying for storage.
Inventory that stays stuck and doesn’t move can eventually be dead or spoilt which means that it is a total wastage of all kinds of resources.
What are the different ways to control inventory?
Inventory forecasting is one of the most important ways to control inventory. It keeps your stocks at an optimized level. This will help you to maintain a level between having too much or too little at any given time. Setting up a barcode traceability system can help you with this.
It is known as the backup stock that you keep on hand for each of your products. It is all about being prepared for unexpected scenarios and this stock should not be used for the general daily orders.
A reorder point is the exact point at which you need to reorder your stock. It might sound simple but if you order it early and you are overstocked. If you order it late and your safety level is eaten in too. Always calculate the lead time with the help of a tracking management system to ensure that you have buffer days.
Safety stock and reorder points help in controlling the inventory by determining when to order new stock. However, figuring out how much to order is a completely different conundrum. For that, you can take the help of economic order quantity with barcode stock management to ensure that you are carrying costs to a minimum.
These were some of the forecast inventory control methods. You can even use organizational inventory control methods by categorizing barcode stock management and tracking management systems.
It is a very simple principle that business owners need to incorporate, especially if they are dealing with perishable items. You have to stop using new stock to fulfill your orders when you already have old stock sitting in your warehouse. Make a rule to store the new inventory from the back of the shelf.
It is a type of barcode stock management system that prioritizes certain items over other items. Divide them into three parts:
Once you do this, you can take informed decisions.
It is important to have a good inventory control system in place. Also, have a barcode traceability system in place so that you can update stock discrepancies immediately.