How to Improve Your Inventory Management
Inventory management is a crucial aspect of attaining success in a small business. Knowing what stock is on hand and where it is streamlines your purchasing and selling process. Here are some of the basics to help you get started.
Organize Your Stockroom
Map out every inch of your stockroom, either on paper or on a digital model. Note the placement of all shelf and storage space. If the shelving is not at optimum efficiency, replace or add more shelves. Designate a location for each one of your products, with similar products placed close to each other. Plan the layout of your stockroom in whatever way works best for the inventory management of the items you need to have on hand.
Track Your Inventory
After you have figured out where to place your inventory in the stockroom, be sure you have a system in place to keep track of precisely what you have on hand and what you are running out of and need to reorder. A software program combined with SKUs, or stock keeping units, facilitates your inventory management by allowing you to log the data and quickly obtain a comprehensive picture of your inventory at all times.
Put labels on both your stockroom space and the items you store. Use an alphabetical or numerical code to label your stockroom by sections, rows, racks, and shelves. Label your inventory items with the product name, price, and SKU number or whatever data system numbers you use. You may also want to add further details such as weight, size, color and description.
Consolidate Vendor Data
Just as you need an app or program to keep all your inventory data in one place, you need to consolidate all the information about the vendors you reorder from. It may be the same program or it may be unique, but be sure that at a glance you can match needed items with the vendors or representatives that sell them. For more advice on inventory management and other financial issues, contact Davis Commercial Finance.