The first step in improving your inventory management is finding an inventory management software like the one at http://www.getcarta.com – inventory management software. This helps in the automation of your inventory taking and it also makes the computation more efficient. The use of this software brings lots of advantages but there are still some things you can do aside from getting this kind of software.
- Categorise Your Stock Levels
Categorising your stock level will help you determine when it needs to be restocked. You can categorise them into levels such as excess, safety, for replenishment or obsolete. Different items could have different numbers in stock when it comes to the levels because each item gets sold at a different rate. If one of your items gets easily sold or are sold in much larger quantities, then expect that its safety level is different in the number of stocks you have as compared to the one that doesn’t really get sold often.
- Use Formulas That Work
Some only rely on the rule of thumb to calculate for their stocks safety level and this is something that should be improved. There are standard statistical formulas that also include the history of that certain product in your shop that gives out the best results so that you could be more efficient.
- Recalculate Safety Levels Regularly
Once you have calculated the numbers for your levels, it is important that you don’t stop there. You should be able to recalculate them regularly because the sales are not always the same or constant. Changes could occur and you should also be able to adapt to the changes.
- Talk To Your Supplier About Frequency Of Delivery
Although it would be great if your supplier can send you products as soon as you request them, there may be some who do deliveries on a schedule. It is important that you determine the load and the frequency of delivery and tell this to your supplier beforehand so that both of you don’t have any problems in the future.
- Reduce Stocks Or Inventories
It is important that you reduce the stocks that you have because you are paying for the storage of those products. Instead of having a lot of products that are difficult to move, you should find a way to move the products and have less of them in storage. Your business is to be able to move these products to consumers and not to store them.
- Create A Plan To Sell Products In Excess
Products in excess can get damaged over time and you have to plan on how to make sure that these get sold. You also have to determine why you had excess products and once you have determined the reason, you should put a stop to it so that you won’t have any excess products in the future.
You don’t have to do these things alone because you have to create a team that will help you with this. If you plan to do it on your own, you can expect that it would take a lot of time for you to develop your business. Having others to help you is the only way you can improve your business on time especially if you have a very big one.