Efficient management of business inventory is critical to keeping shop and boosting business productivity. As a company that specializes in providing POS and inventory management software, we conduct client sessions and occasionally send personnel to stores to assess their inventory processes. This helps us identify common inventory challenges and appropriate solutions.
Here are some tips to help improve inventory and achieve better cash flow.
- Utilise minimum and maximum levels on items to render more seamless purchasing and inventory.
Insufficient inventory can lead to less sales (even losing new customers), but excesses mean that your money is held up in items that are not being sold yet. Either way, it results to you losing cash.
The best way you can keep inventory levels in check is to make wise use of your minimum and maximum inventory levels. Establish proper reorder points and make sure you have just enough stocks.
- Properly arrange items in your warehouse.
This is already a given, but you would be surprised at just how many business owners miss out on this basic rule.
How does efficient inventory item arrangement translate to more cash? For one, if items are properly sorted out from the beginning, your employees could save a lot of effort and could spend their time on other company tasks than rummaging through piles and piles of unorganized stocks whenever needed.
Unorganized inventory also sometimes lead to reordering more than what should be ordered. Some merchants would think item stocks are low when in fact, they were just hidden somewhere in the pile. Too, think about how much money you could save when you don’t use equipment like forklifts frequently to find certain items.
Don’t just place items randomly in the warehouse. Hot-selling ones should be kept near the dock. All others should be arranged according to categories.
- Avoid annual inventories. Opt for regular checks in scheduled batches.
An olden practice in businesses is to cease operations for one to seven days in order to check inventory at their warehouse, which is a great loss of time, resources and money. Why not do inventory checking daily or weekly? You can evaluate one category at a time and match the items against what is recorded in your software.
- • Take advantage of new inventory software.
There are tons of newer, less expensive software available nowadays that can help you save up on upgrades and costly Windows reinstallations on traditional systems. Such include cloud-based POS systems, which allow you to access and evaluate your inventory in real-time even when you’re not physically present in-store. These also efficiently store all data in a secure server so that you don’t have to worry in case you run into a software problem.
- Improve functionality by acquainting yourself with your inventory software.
After spending hundreds to thousands of dollars, very few business owners actually take the time to explore their POS software’s features, thus missing out on important features that can help them manage their inventory effectively. Often POS providers get calls from clients asking why a particular feature is not present in the software when it was there all along.
Undergo software training. Take advantage of technical assistance offered by the software company. Seek the help of personnel who has technical know-how. The more you know about your software, the more benefits you get out of it.
For more details, please visit us at www.retailexpress.com.au.