If you are the manager or leader of your own business, you will know how important it is to stay updated and make sure everything is on track. One of the essential things about managing a business is to take care of your inventory.
How has the inventory system been? Does it need any improvements? Did you lose out on sales when items were out of stock? All the questions can be answered quickly if your inventory records are efficient.
Did you know that 1/3rd of businesses can miss out on their deadlines because their products were out of stock? I’m sure you don’t want to contribute to that number and that is why I’ve listed six tips for you to take care of your stock efficiently.
1. Audit your stock
The first step towards inventory management is to conduct an audit of your stock. Even if you have excellent software or technologies, it will help to actually count the number of items that you have.
This will let you know beforehand whether to produce more such items or not. It also helps you to understand if the actual number of the stocks matches the number you have in your mind.
Most businesses use the conventional year-end or annual physical inventory, which includes counting every single item.
2. Identify items properly
The next step is to identify the things that you have in stock. Many companies use simple methods like Excel or Spreadsheets to keep accurate data on their products, but you can use other tools too if you wish.
When your business expands, you will have to figure out more complex methods of identifying and keeping track. For example, you will need to add the serial number or barcode number of each product. In this case, you should install a special inventory management application.
3. Reduce repair times
Essential machinery or equipment might not always be in working order. So you need to manage these assets intelligently. For example, a broken piece of machine or tool can cost a lot of money for repairs.
Moreover, your production can be halted indefinitely. In order to prevent such problems, keep checking and inspecting all your machines and tools to make sure all of them are working properly. The moment you see a particular machine malfunctioning, take immediate steps to resolve the issue.
4. Post transactions timely
The biggest key to inventory management is timing. This is especially important for transactions that deal with FIFO (first-in-first-out) or LIFO (last-in-first-out). If you have a habit of closing your account books on a regular basis, you also have to post your transactions within the correct time.
When you sell your items to the customers, you should make sure that the numbers are accurate. If you feel that time management is an issue, you can contact an expert like the Fishbowl Inventory to guide you.
5. Ensure quality control
Keeping track of inventory is important but so is maintaining the quality of your products. Stocking up on items but compromising on their quality is a big mistake.
Ensure that all your products look great and serve their purpose well. This not only increases customer satisfaction but also cuts down your costs of repairing or remaking your products.
You can take simple steps, such as asking a few employees to conduct a thorough inspection during stock audits. This can be accompanied by a checklist for signs of damage or the correct labeling of items.
6. Map out the process
Managing inventory isn’t an easy task, It requires quite a bit of planning and strategizing. So it’s important for you to map out the process and make sure everyone in your team has a proper idea of what their duties are.
Things can get out of hand quickly so planning accurately will help you in the long run. When each process is laid out clearly, there won’t be any miscommunication and confusion. Ask your subordinates to help you out and outline each step of the entire program.
Over to you…
If you wish to take some help from a specialized inventory-management website, Fishbowl Inventory should be your first choice. It is the number one software for taking care of all your inventory needs, including Quickbooks, Xero, and much more.
You can easily automate the entire process and scale up your business. With key manufacturing and warehouse features, this website offers you a wide range of services for any kind of inventory needs.