Retail shop owners usually have a hard time managing their inventories. The problem is they only settle for one specific system when checking their stocks. If you’re still stuck in the old-fashioned manual tracking, it’s time to make some improvements. In today’s fast-paced business world, you need to start innovating.
Here are some tips on how to manage your inventory more efficiently:
Take Advantage of Online Tools
There are several online tools and software system you can use to help you monitor your inventory. With today’s technology, you can simplify the manual process of collecting data. This makes it more efficient and accurate with your audits. Some of the popular tools used for inventory management are ABC Inventory, Canvus, Delivrd, inflow, and Odoo.
Set “Par Levels”
Another way to make your inventory management more efficient is to set “par levels” for each product. Par levels refer to the least amount of product you should have in your store. The purpose of this strategy is to find out which products are in demand, and the timeline for restocks. This also allows you to systematize the process of your orders. Take note of the changes in supply and demand. Check the par levels regularly so you can make necessary adjustments.
Use Barcode Labels
Manual tracking of retail products is prone to error, which can cost you a lot of money. With advanced barcode system, you can easily keep track of large inventories more accurately. You can even get the data in a matter of seconds. This means customers no longer have to wait when purchasing several items. Today, you can even find barcode labels suppliers providing customized printed labels. They can specially design the labels with your brand on it.
Implement FIFO (First-in, first out-basis)
The “first-in, first-out” basis is one of the most basic principles when managing inventories. As the term implies, the oldest stock should be sold first. This is important, especially for perishable goods to prevent spoilage. While sometimes it could be difficult to retain the principle, should have an organized warehouse or storage room for your products. Another solution for overstocking is to launch promo events.
Manage your Staff
Most of the time, the problem with inventories is lack of communication. Take some time to talk to your staff. Meet them more often and give clear instructions. If you think your staff can’t handle the workload, consider hiring a project-based or contractual specialist to help you out.
Prepare for Contingency Plans
As a business owner, you should anticipate the possible risks and prepare actions plans for each. Keep in mind that any inaccuracy with your inventories can lead to bigger problems in the long run. This can affect the overall structure of your business including cash-flow, financial discrepancies, and your target sales goals.
Evaluate Audit Reports Regularly
Regular auditing is vital to ensure everything is in order. Even if you’re using updated software tools, it is still advisable to evaluate the reports. You can do spot checking every six months to see if the audit reports make sense. If you notice any slight discrepancy, try reassessing your process.
These are just some ways you can do to improve your inventory management. For better results, consult a professional.