In today’s cutthroat eCommerce marketplace, maintaining and optimizing good inventory management has become an important aspect for the seller. Inventory management procedures must be cost-effective, accurate, and efficient. Suppose you don’t have these components in the proper place you might run a higher risk of not meeting your customer demand as well as losing out on money. So, it is the right time you consider investing in the best inventory optimization software.
Though it sounds very simple, inventory management is a little more occupied. This means ensuring that you have required and necessary items in your stock as well as having the contingency plan when things do not go as per your plan. Good inventory optimization helps you to avoid losing much money by overstocking and inaccurate accounting. Let us look at the top 7 inventory management techniques that will save you time and money.
- Set Par Levels
Also called Minimum Stock Level or MSL is a minimum stock you must have at all times in your hand. So, whenever inventory goes below the number, you can order more. And this number can vary as per the expected demand or how quickly the product sells. But, when you have determined the MSLs, this can help you to systematize the product orders. You just need to ensure that you re-assess your par levels periodically since market conditions will change with time and in peak season.
- Digitalize Your Inventory
We now know that not having a centralized inventory system will be one big issue for eCommerce businesses. If you are still relying on paper, pen, and cabinet for managing your inventory then it is important to know it will not cut in the digital marketplace today. Suppose you wish to stay on the top of the game, it is important to invest in cloud-based inventory optimization software. It can allow you to analyze, forecast, track, calculate, as well as manage your stock from time to time, from anywhere across the world.
- Predict the Future
Right inventory management will help with the inventory forecasting. When you are managing and tracking the inventory stock levels & output, you can plan for the current demand. Suppose you monitor the inventory trends on a monthly or unit-per-unit basis then you can stay up with the sales all time.
- Think of Dropshipping
In the present years, dropshipping has got its reputation of being the best backup system for eCommerce businesses. In dropshipping rather than carrying your inventory everywhere, the manufacturer holds & delivers the required inventory for you. Thus, dropshipping will eliminate any costs linked with storing and holding the inventory for a long time. Suppose you are not very sure if the manufacturer provides dropshipping, you can inquire with them first. It will save you lots of money and effort since it will remove an important task of inventory management out from the business operations
- Add Reorder Points
The reorder points means they are minimum quantity, considered by you, of your products, which have to be there on hand that will prevent having the stock out. Suppose your inventory goes below this quantity, then it means you have to order a few more products. This will need a little work on a front end where you can calculate the reorder point, however having this can help go short of the inventory that will cause many after-effect issues for the business.
- Regular tracking and auditing
Timely reconciliation is very important. In many cases, you will have to rely on the software or reports from the warehouse just to know the number of the product that you are left with. But, it is very important to ensure these facts match up. There’re many methods to do it.
- FIFO (First in & First Out)
FIFO means the first products that come in your warehouse must be the first one to go out or sell out. It is one of the oldest forms but highly effective management rule. Thus, make sure you consider the newest orders first. The older stock is susceptible to destruction.
It is the right time that you take complete control of the inventory management & stop losing out on money. Make sure you select the best techniques for your inventory management and business and begin implementing it now.