27 Jun Inventory management guide
According to IRI research quoted in a Veeqo infographic, more than 70% of online and 66% of in-store consumers would search for an item somewhere else if it were unavailable rather than waiting for it to restock. Thus, this is the importance of inventory management, so that you have enough supplies to meet demand and that they are accessible where and when you need them. Continue reading the article to understand more about inventory management.
What is inventory management?
Inventory management involved the process of ordering, storing, using, and selling a business’s inventory. This covers the storage and processing of such commodities as well as the management of raw materials, components, and completed goods. Depending on a company’s demands, there are various forms of inventory management, each with advantages and disadvantages.
Before discussing its importance, we must understand the basics of inventory management. This seems easy, but it’s rarely that way. Here is the key to effective inventory management to comprehend:
- Inventory types
- Inventory forecasting
- Inventory received
- Inventory storage
- Inventory analysis
- Inventory accounting
Effective inventory management is essential to running a retail business. Without inventory, the company has no way to make money because it has no stock to sell.
A flawless client experience can be achieved with the help of effective inventory management, which also enhances cash flow, increases profits, reduces shrinkage and waste, and streamlines the fulfillment process. For serious retailers, it becomes a task that cannot be ignored.
Without an inventory, a retail firm is worthless. Therefore, even if it may not be the most interesting topic, inventory management is really crucial to the success of your company.
Why inventory management is important?
Running a successful supply business depends on precise inventory management. Regular stock tracking can assist prevent stock mistakes and other issues. The advantages are as follows:
- Better Inventory Accuracy: With effective inventory control, you are aware of what is in stock and only order the quantity of inventory required to satisfy demand.
- Reduced Risk of Overselling: Keeping track of what is in stock and what is back-ordered helps you avoid overselling products.
- Avoiding Stockouts and Excess Stock: A company can reduce the number of days an item is out of stock, if any, and prevent carrying too much inventory by better planning and management.
- Save cost: Until it is sold, stock costs money. Carrying expenses include labor wages, storage, handling, and transportation costs. Inventory can also be lost due to theft, disasters, or obsolescence.
- Extra insights: You can simply identify sales patterns, keep track of recalled goods, and monitor expiration dates using inventory tracking and stock control.
- Profits Increase: Increased inventory turnover results in increased profits since availability and demand are better understood.
- An improved warehouse: Labour expenses are reduced and order fulfillment is sped up in an effective warehouse with things arranged based on demand, which items are frequently sold together, and other considerations.
How to manage your inventory better?
Any business that sells physical goods must learn how to manage inventory effectively. As mentioned in the definition, inventory management includes everything that has to do with your items, from prompt ordering to appropriate receipt, tracking, and storage. Yes, it involved a lot of tasks. Thus, let’s watch this video and learn how to manage your business inventory like a pro.
Based on the video above, using a POS makes it simple to manage your store’s inventory. You can keep track of your inventory in actual time and determine how many items you own overall. It’s so easy, all you have to do is scan your items, enter your quantities, and the items will be added to the inventory of your POS software. When compared to manually tracking your inventory, this saves a tonne of time.
Check out our website for more info and try out our free demo and experience better business management at https://didisystems.com.my/get-free-demo/.