Every company which grows and establishes its brand in the market start small. With the futuristic business plan, efficient execution and smart management of resources any entrepreneurial venture can succeed. Time management and customer satisfaction is the key to build up the trust and market share. Therefore, by emphasizing on efficient inventory management can ease out the business processes and also enhance the supply chain of the company.
Few inventory management tips which can ensure smooth functioning of the company, as well as retention of the customer base, are as follows:
1. Maintain a balanced inventory: It is vital to determine the inventory requirement based on the market demand. Inadequate stock can lead you to lose a customer to your competitor, on the other hand, excess inventory can block your cash flow unnecessarily. By efficiently maintaining the volumes you would be able to cater to your trusted customers which is utmost essential to increase company’s profitability.
2. Warehouse management: stocking of the goods is done in the vast facilities known as warehouses. By following inventory management techniques like ‘first in first out,’ ‘last in first out’ etc. you can ensure proper management of inventory in the warehouses. By smart space planning and records being maintained, you can do optimum utilization of the space available and also make the retrieval process easier.
3. Automation: Introduction of the automation system in inventory management can speed up the process. Low stock notifications, warehouse transfer notification and other alerts generated on time can save your business from more significant losses and time wastage.
4. Tracking facility: Offering transparency to the customer in regards to the movement of their goods can help you gain their trust. Also, automatic stock adjustment of the inventory after the order is placed and dispatched helps you to keep track of the inventory levels and plan for replenishment if required.
5. Adopting centralized inventory management: You may be operating through multiple locations; therefore, it becomes imperative to have a centralized view of all the movement happening to get a grip over the demand and supply in the market. The new age online inventory management software offers the real-time update and excellent management of the inventory of the company.
6. Identify the fast selling and slow-moving inventory: It is essential to identify the fast-moving products timely and plan a separate plan for the space management, stock levels and smooth retrieval procedure for such stockpiles. Detecting slow moving products can help ramp up the warehouse space efficiently.
7. Doing random and planned audits: Since inventory management involves various processes and contribution of multiple human resources, it becomes necessary to keep a check that they are performing their jobs efficiently. To attain 100% accuracy, plan random audits to ensure quality and efficiency. Through these checks, you can track down the misplaced, stolen or unusable inventory and can take necessary steps to make adjustments accordingly.
8. Get feedback from the clients: Improvement is the key to success. With various technological advancements as well as frequently changing market scenarios, it becomes essentials to take inputs and feedbacks from your suppliers and customer on your working style and scope of improvement to maintain optimum satisfaction levels.