A vital part of maintaining the efficiency of any business or warehouse is in coordinating the supply-and-demand of your inventory. To avoid overstocking items that surpass the customer demand, it is important for companies to implement a leaner practice that manages production on an as-need basis. That’s where the just-in-time inventory system comes into play.
Inventory management is the system you use to oversee the movement of products in and out of your business. For an e-commerce company, this mostly relates to the flow of products through your warehouse rather than a physical store, but the same principles apply. Numerous inventory management strategies exist that serve to track stock, manage invoices and orders, govern inventory-related accounting, and other elements. Here are some tips for maximizing the capabilities of your inventory management system.
Approach From a Supply Standpoint
Business owners can usually identify roughly how much inventory they have available. Not all can say how many weeks of supply their stock makes up. By keeping in mind how many sales your current inventory can support before being restocked, you can link inventory levels to sales projections. Generally speaking, the ideal inventory level is just enough to match predicted sales until restock arrives along with a buffer in case of sales spikes, late stock delivery, or other complications.
Slow moving inventory is a situation which almost every retailer has to deal with at some point. The good news is that you can prepare for slow moving inventory if you focus on proper inventory management practices. Managing these circumstances carefully saves capital and keeps your profit margins stable.
As a small or medium-sized business (SMB) owner, thinking about inventory can cause some premature grey hairs. As a fulfillment services company that specializes in inventory management, APS Fulfillment, Inc. understands the stress SMBs go through in trying to properly coordinate and ship product orders.
Once your fulfillment business is underway, you’ll hopefully begin to see how well you’re doing financially. But many retailers forget that success means being busier and having more chances for your business to get disorganized. Not adapting and learning to manage growth can have severe consequences, especially in today’s competitive fulfillment marketplace.
For better inventory and fulfillment management once your company starts to grow, be aware of the following:
Many fulfillment houses place priority on good customer service, but they often don’t know how to also make it more efficient. However, they need only look to their inventory.
If you’re in product fulfillment, you need to successfully manage your inventory; in fact, failing to do so can mean not having any clients. That’s why it’s essential that you have a proper inventory management system in place to make sure your clients get items in pristine condition and on time.
Products come in and out, but you should be in control of that cycle at all times. And if you run a small business or fulfillment company, you have to; your success depends on it.
If you’ve never given much thought to inventory metrics, here are five factors to take note of: