When you’re in a business that keeps inventory, having an efficient inventory management strategy is critical to growing your company. Effective inventory management strategies allow your business to track your stock levels efficiently, saving you time and money. Your goal is to minimize the cost of holding inventory without losing the ability to provide customers with what they need when they need it.
Inventory Management Strategies Matter
Not paying attention to your inventory levels can cripple your business. Even big companies like Walmart have had inventory management problems. They have since recognized these issues and used various inventory management techniques to overcome their obstacles. Here’s how you can do the same:
1. Automate your inventory management
It may work for a while to manually track your inventory, but it will become cumbersome at some point. You’ll eventually need to move to something more efficient. Inventory management systems take the guesswork and human error out of the equation and allow everyone to be on the same page.
2. Be aware of transit time
Knowing how long it takes you to get a new product in hand will help you plan better and avoid out of stock or backorder issues. If you’re ordering from overseas, that means that by the time you realize you’re out of a product, you’ve now got to wait upwards of four or more weeks to get it in hand again.
3. Pay attention to the data
Data drives your business in many ways, and inventory management is no different. Knowing the numbers and the history behind your ordering can help you plan.
4. Be consistent
However you decide to manage your inventory, it’s important to be consistent in how you receive, track, and purchase it. This includes your auditing processes.
Getting Your Inventory Under Control
Utilizing these strategies are just some of the ways you can make managing your inventory and supply chain easier. Bossard Inventory Management is ready to help you incorporate these and many other strategies so your business can succeed.