When you’re the owner of a company and you’re having trouble keeping track of your inventory, it might seem like you’re up against a hurdle that’s impossible to overcome. However, you are not the only one in this situation, and the start of a new year is the ideal opportunity to regain control of your stock.
All challenges related to inventory control may be reduced to the following core issues:
- There is a significant surplus of some types of items. Both turnover and profitability suffered as a result of the excess inventory as well as the dead stock.
- Some goods are now unavailable, which has led to consumer dissatisfaction, lost revenue, and backorders for the unavailable items.
- The warehouse is a mess, and it seems as if the inventory is trying to exert its authority over the whole operation.
- You are not using custom fitting solutions and right inventory shelving systems.
What exactly is meant by “Inventory Control”?
Controlling your inventory means keeping track of what you already have stored in your warehouse or stockroom. To name a few control measures:
- A complete understanding of the location, specifications, and amount of each product.
- Ensuring that all of the inventory is in a useable state and is packed and ready to ship
- Using custom fitting solutions and inventory shelving systems that are both effective and efficient to reduce order fulfilment costs.
- Acquiring an expert level of control over your inventory is the first step in developing an efficient inventory management system for your warehouse and your company.
Learn How to Regain Command of Your Stock:
- Create a stock list that has been authorised.
The answer to these three fundamental questions will determine what not to stock in your warehouse. A lot of the time, goods that belong to one of these three categories do not drive income, and the sales of other products are what allow the company to keep these products in stock.
- Is it a replacement component that’s essential to the functioning of other, more lucrative units or products?
- Is it an item that you really must have on hand in the event that a high-stakes client requires it right away?
- Is this what’s known as “show stock,” which is a product that does not sell very often but that you keep around because you believe it exemplifies the variety and quality of your offerings?
- Liquidate your stock
After you have decided what is genuinely stock and what has simply been taking up space, you may next get rid of the inventory that is no longer needed. Because the majority of these items are doing nothing more than taking up room and costing you money, any additional money collected above the cost of liquidation is considered a bonus. When conducting a liquidation, take into consideration the following options:
- Transfer inventory to a new location where there is a higher probability that buyers will buy the things in question.
- You should give the products back to the merchant. Whether or not this is possible depends on the seller as well as any costs that are linked with the return; nonetheless, looking into it is never a bad idea.
- Provide an incentive, either to your consumers or to your sales staff, for purchasing these particular things.
- Reduce the amount you spend on order fulfilment by giving your warehouse a thorough cleaning and reorganising it.
Your facility’s general architecture might have a considerable influence on the shipping efficiency and, as a result, your bottom line. The majority of individuals arrange their warehouse in accordance with the product categories; for example, all of the trousers are grouped together, as are all of the shirts. When it comes to in-store consumers shopping, this technique works well. When fulfilling orders, it is possible to considerably improve productivity by categorising items according to their popularity and level of need.
Make use of storage bins to keep things that are regularly bought next to the packing station in order to reduce the amount of time spent between selection and packaging. Items that are part of more than one unit may be stored close to the shipping station to make it simpler to recall their whereabouts and cut down on the amount of time spent searching for them. Use proper custom fitting solutions and inventory shelving systems for your storage needs.
- Determine the optimal dimensions of your principal storage place for every product
If you sell a variety of different sized goods, you may not know that the larger ones are taking up precious real estate since you stock them alongside the smaller ones. The majority of individuals store their belongings that move quickly in an area that is convenient for them to obtain. On the other hand, if they are huge objects, it’s possible that they’re taking up an excessive amount of room in your most preferred storage spaces.
Think about how big a major storage facility has to be so that it can hold adequate supplies for a certain length of time. For instance, if you anticipate selling ten things that need heavy duty each week, you should have enough of those items in your high-traffic locations to last the whole week. Once a week, bring supplies from another site to restock that region.