Inventory management is one of the most important aspects of a successful business. Understanding the need for effective stock control is only part of the solution. You should also know how to implement it and make the most of it. There are various reliable strategies for improving inventory control, such as characterization, integrated mobile technology, warehouse management systems, and supplier relationship management. These strategies and more provide a foundation to improve your inventory management. If you’re wondering how to improve stock control, here are some tips to consider.
What Is Stock Control?
Stock control allows you to track how much inventory you have at any given time, as well as track where it is located in your warehouse. Efficient stock control ensures that you always have the right number of products for customer orders. When you have a quality inventory management system in place, you can reduce the risk of capital getting tied up and it helps you prepare and meet customer demand. Here are some tips on how to control stock.
How to Improve Stock Control
No one wants to lose money on potential sales that can’t be filled or by stocking too much inventory. An inventory management system can help you prevent a variety of mistakes such as spoilage, dead stock, and storage costs.
An important feature of good inventory management is the ability to accurately predict demand. This is difficult to do without implementing software and technology. Many variables are involved, especially with a growing company, and it is challenging to know exactly what’s ahead. When projecting your future sales, you should consider the following:
- Trends in the market
- The previous year’s sales during the same week
- This year’s growth rate
- Guaranteed sales from subscriptions and contracts
- Seasonality/the overall economy
- Upcoming promotions
- Planned spending on advertising
Highlight High Sellers
An important tip for inventory management is placing items that sell in high volumes near the shipping area. Your warehouse staff will easily be able to access the items and it will save a lot of time and effort.
Educate Your Staff
Educate your staff on how to improve stock control to be more effective with time management. Use their best skills and the most appropriate area to achieve productive results. You should also hold regular training sessions and workshops to make sure that the people on your payroll are doing their best work.
Regularly Inspect Stock
You shouldn’t wait for the entire year to end to do a physical inventory count. By this time, there may be too many errors and it may seem overwhelming to resolve them. You should perform cycle counts on a more regular basis (ex. every quarter) to identify and resolve discrepancies.
Maintain a Relationship with Your Suppliers
Your suppliers are one of your business partners and having an open line of communication will help you provide goods to your clients at the price they want and within a reasonable timeframe. When you have a good relationship with your supplier, they may proactively notify you of potential shortages and help you find solutions to meet customer demands. You should not only focus on getting the lowest price from your suppliers, but aim to build a long-term relationship with them.
Consider Inventory Optimization Tools
Inventory optimization tools are essential for better stock control, especially as companies seek better ways to evaluate their entire network and find the best methods for each product at each step of their supply chain. These tools are usually a stand-alone software that uses data from WMS and ERP systems. These tools consider supply variability, demand variability, and replenishment parameters to find out how much inventory should be held to protect against that variability. These tools have become increasingly popular as more companies realize the value of cutting-edge optimization capabilities.
Make Smart Decisions about Slow Moving and Obsolete Items
Although it is sensible to focus on your more profitable fast-moving inventory, you should never ignore your slow-moving merchandise. The longer these items are unused and sitting on your shelves, the more they take up space, utilize labour and resources, and pose the risk of becoming obsolete. This inventory can begin to get in the way of your more popular items. You can put these items on sale or make them add-ons to related products to increase their appeal to your customers.
Resolve Issues on Time
When you regularly monitor inventory, you will be able to identify any issues before they get out of hand. Resolve any problems as soon as you find them to improve your stock control system. You must always know how much you have, how much you need to pay, how much you will receive, and if you need to place more orders. Staying on top of these aspects will help you maximize business profits.
Hire APS Fulfillment, Inc. for Stock Control Services
Effectively managing your stock includes identifying which products are a hit with your customers and which ones aren’t. As your business starts to grow, tracking your inventory will be extremely important, as well as analyzing any data related to the products you sell and those you don’t. An inventory management software will help you achieve this goal. It will help you prevent risks from hindering your ability to run smooth operations and meet your customers’ needs. It will help you track your inventory in real time and record metrics to help you make the right decisions. By partnering with a third-party logistics provider, you can gain access to inventory management software and so much more.
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, fulfilment 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.