Any organization that stores items in its warehouse needs some sort of inventory management. Without a proper strategy in place, your organization will face multiple challenges that could cost you money, waste time, and lead to poor customer service. Since the marketplace is constantly changing, you need to be able to adjust your processes to adapt to unexpected shifts. If you work within the e-commerce realm, you already know how important inventory efficiency is to draw in more customers and meet their demands. If you want to have a positive brand reputation, you will need to provide exceptional service at top speeds—after all, this is what customers expect. Here how to solve common inventory problems to ensure better product availability, customer service, and efficiency across the board
Invest in Workforce
If your business is growing and you are still trying to make it work with a small staff, it may be time to invest in a larger workforce. The more rushed and overworked your employees are, the more likely they are to make mistakes and be less efficient. To meet demand and ensure your employees are working their best, you need to consider hiring more workers. However, hiring employees isn’t cheap. Another option is to partner with a company that provides warehouse staff, as well as the technology and processes to help your business thrive.
Determine the Problem Area
Before you begin to look at possible solutions, you must have a full understanding of what your unique inventory problems are. Begin with the idea that every aspect is a problem, unless there is a financial reason for it. List all the categories of your inventory problems that signify big losses, including obsolete material, overstock, and defective material.
Invest in Software
Another alternative to hiring more employees is to choose a software that can take over some of the manual processes you run. Software can help you save thousands of dollars a year and increase your efficiency. One option is an inventory and accounting system that collects data from sales and inventory counts. As your warehouse staff scan each item into the system, the figures adjust to keep you in the know each step of the way.
Avoid Dead Stock or Get Rid of It
Dead stock includes items that can no longer be sold, items that are out of season and style, and items that are irrelevant. Improving your inventory management will help you avoid dead stock and find solutions for how to get rid of it so you can make the most of your warehouse space.
Save Money on Storage
For many organizations, warehousing is a variable cost that changes based on how many products are in storage. Storing too much product at once or finding out you have multiple products that aren’t selling well means you are paying more for your storage than you need. Avoiding this can help you save money and invest it in other important areas.
Combine Multi-Warehouse Stocks
If you are currently managing stock in multiple warehouses, you would benefit from investing in an inventory optimization software. With multi-location stock management capabilities, you will be able to receive automatic suggestions for how to redistribute excess inventory from one warehouse to another. This feature ensures you use up stock that you already have before you order new items. It also helps you make the most of your warehouse space.
You can gain a better idea of how much you have in stock and how well certain items are selling by doing regular auditing. By relying on your software and reports from your warehouse, you can make accurate predictions to improve your operations day by day. There are a few methods:
- Physical Inventory: You can physically count all your inventory at once at the end of the year or every six months. This helps you with accounting and filing income tax, as well as helps you get a good idea of what you have in your warehouse. It can be extremely tedious, however, if you have large or multiple warehouses.
- Spot Checking: This method is a bit more time-effective—you choose a product, count it, and compare it to what you see on the software or online. Fast-moving or problematic items are usually priority with this option.
- Cycle Counting: Another way to audit is doing a cycle count. Instead of counting all your inventory at the end of the year, you spread it out throughout the year. Each day, week, or month, you check a different product on a rotating schedule.
Improve Item Visibility with Automation
If you haven’t added this to your supply chain, now is the time. You should consider investing in a quality automated inventory system to remove tedious manual processes and boost efficiency in your inventory management processes. There are a few options for you to consider, including an enterprise resource planning solution (ERP) or warehouse management system (WMS). These systems provide visibility of your inventory at every stage as it moves along the supply chain. With barcode technology, you can gain real-time data about every item in your warehouse, to make informed decisions about what you have in stock, when you need to restock, and when to stop ordering an obsolete item.
Pick APS Fulfillment, Inc. as Your 3PL Partner
Your business can be far more successful if you have a sturdy inventory management solution. Even if you are a startup and want to focus on your sales and marketing, your inventory management must be impeccable to ensure you deliver what your customers want. By teaming up with a third-party logistics company, you can gain access to robust warehouse and inventory management software. These companies are equipped with the tools you need to manage your inventory, get your products shipped out on time, and keep your customers happy.
APS Fulfillment, Inc. cares about our clients’ success. Our professionals will bring you solutions to your fulfillment challenges. We provide services such as real-time inventory management, e-commerce fulfillment, fulfillment solutions, and fulfillment markets. There are endless benefits to working with a third-party logistics company that uses the best-quality software systems to manage your warehouse. So if you’re looking for the right company, look no further than APS Fulfillment, Inc. You can contact us by e-mail at [email protected] or by phone at (954) 582-7450.