Inventory management is a fundamental task of your business. To be a successful entrepreneur, your ability to control inventories is paramount. To do this, you need to have the right stock quantity levels always. Otherwise, frustrations of overstocking and stock-outs will become the common trends in your business.
To avoid such instances, you must ensure that you have better ways of controlling your inventory levels. Here are the three proven ways to improve your inventory control:
- a) Develop inventory management policies
As an entrepreneur, you need to develop inventory policies to help you control your stock levels. This means that you have a policy on the stock level at which you need to re-order. Also, the policy should stipulate the safety levels and avoid overstocking. With a POS system that incorporates an inventory management feature, accessing this information becomes easier. Having these policies will help you to minimize costs due to lost sales and overstocking.
- b) Analyze and classify your products according to how they are moving
Apparently, all products do not sell at the same speed in your business. There are those that move faster than others. Products such as foodstuffs will require frequent re-ordering than furniture or luxury ones. In this regard, as a business person, you need to classify your products according to how they are moving.
Also, you must be at per with the current trends. For instance, some products demand is high during a particular season. Woolen and warm clothes will be in demand during the winter season. Hence, you need to know which product inventory to increase or reduce at a certain moment. Without this approach, you are assured of making more loses each time a season changes and you are unaware of it.
- c) Establish optimized purchase procedures
For you to effectively control your inventory levels, you must put in place purchasing procedures that match your sales history with demand patterns. Your POS system is vital in the development of this policy as it helps you to generate the inventory analysis reports. Once you obtain the report, you need to have a way of dealing with obsolete stock and the product whose demand is showing a downward trend. This way, your stock levels will remain intact which will save your inventory management costs.
In whole, inventory control is vital in your business. Given that inventory is the heart of any business, you must ensure there is a steady flow of sales and purchases, and none exceeds the other.
Other topics that you can check in: Why Point of Sale (POS) is the Right Choice for Thriving in the Retail Industry
— Dan Harley (@MojaveDan) 19 de junio de 2017