10 Must-Dos for Inventory Management

Keeping track of inventory is very vital just as much as maintaining the right things and management in businesses. While it is true that manager could simply hand down such task to their employees, it may still be a practical and wise idea to do it themselves as this would allow one to see things in a very logical, economical and presumable manner.

For that, here are some insightful and cost-efficient means to streamline and manage your inventory system.

Tip 1: Knowing the Basic Elements of a Workable Inventory System

“Workable” is a better term to use when referring to inventory as using “perfect” would be a debatable matter since there are no perfect ways to create such. However, there are pretty bad practices that may be overlooked when maintaining this system. It would only be practical to know these critical elements to look after when keeping an inventory method:

  • Well-organized and standard location names
  • Location labels that are easy to identity and read
  • Unique and unmistakable item numbers
  • Good starting count with units of measures
  • Dependable system that can track all activities related to inventory
  • Good and wise policies and guidelines
  • Reliable employees that are obedient to these policies

Tip 2: Use an Electronic Database

To minimize redundancy and all other hassle, it would be practical to use codes and scanners when tracking deliveries. Such systems would help you as well in avoiding errors while also having the capacity to integrate them with reports and other quick assessments.

Tip 3: Accurate Predictions

Predicting future needs is highly necessary as nothing eats up space and working capital like that of unused materials as well as inventory.

Tip 4: Reviewing Assumptions

Making sure that numbers are still on track, conducting a review on assumptions and buying decisions quarterly would help a lot. This is also a crucial step when keeping a good inventory system.

Tip 5: Stock Rotation

Rotating stock is also an important habit since this would ensure that you retain good and new items. Implementing a first-in first-out policy would assist in keeping the system moving.

Tip 6: Including Staff in Decisions

Gathering thoughts and ideas from your employees, especially those from marketing, would also help you with your merchandise. Most often than not, they are the ones always updated on the big sales that are coming up in the market.

Tip 7: Priorities

Identifying the things most valuable to your customers is also a good thing to do. Keeping track of this would help you in knowing what to handle first.

Tip 8: Quality Control

Added to your layers of inventory responsibility is guaranteeing quality over your services and products. Never let mistakes happen, especially when you can avoid it.

Tip 9: Cycle Accounts

Performing this and analyzing the discrepancies would allow you to go through all locations as much as possible.

Tip 10: Back It Up

Religiously keeping a back up for your inventory programs is a must. Buying a cloud facility would just do the right job for you.

I hope you find these tips useful and help you maintain an efficient inventory. 

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JamesBowen