Are you looking for a better way to manage your inventory?
Whether you’re new to inventory management or want to know if there’s a better way to optimize your inventory, you’re on the right page. Today's topic is inventory management optimization.
But first, let’s dive into the importance.
Let’s think of your favorite ice cream shop. Your favorite and the shop’s most popular flavor is chocolate. If that flavor is sold out every time you visit the shop, there’s a high chance that you feel unsatisfied regardless of how good it tastes. Your experience of the shop remains in a negative taste.
When your product is out-of-stock, it affects your customer’s satisfaction and this will affect your business’ sales. If a product that the customer is looking for is never there, there’s a big chance that the customer will not visit the store again.
So how can we always have an optimum level of stocks in our warehouse? The key is optimizing your inventory.
What is inventory optimization?
Although the phrase ‘inventory optimization’ may seem like a big process, it’s actually about knowing and doing your inventory better.
It can start from checking your inventory management process. If there's a large number of quantities frequently missing at the end of the month, it may be a sign that your team needs to implement an inventory count regularly.
It can also start by calculating your inventory turnover rate. If the number is too high, it might be due to either your business doing great or ordering too few products at once. If the number is too low, you may want to consider ordering less and conduct clearance sales for items that are stacked in your warehouse.
Let's get a closer look at inventory optimization.
3 Ways to Optimize your Inventory
- Categorize Your Inventory
If your clothes were rambled together in a big pile, it would take a long time to find the piece you want. So in most households, clothes are organized in hangers or drawers by their category. This categorization actually works well when inventorying as well. When registering your products in a list, make sure to insert categories as well. Categories help to sort and filter your products in a group and increase the visibility of your inventory.
- Barcode Your Products
Even if your products don't have a barcode, it doesn't mean you don't need one. Barcode not only acts as a unique number for your product, but it also helps minimize your time searching for the product. With the help of a barcode scanner, not only checking the product status is easier, but also conducting an inventory count becomes available.
- Use a cloud-based, real-time inventory software
With cloud-based, real-time inventory software, not only is your inventory data secured but also all team members are able to check the inventory in a real-time update. Especially with stock control software provided in both desktop web and mobile app, it helps to manage whenever, wherever and help increase the inventory accuracy.
Looking for inventory management software?
BoxHero is the easiest inventory management program for any size or type of business.
Start inventorying your items efficiently than ever.