It can be difficult to keep track of inventory when you have a small business. Continue reading to learn some tips that will help you keep your inventory control stock under control in your small business.
Create an inventory system
Do you know that a good inventory management system can make a significant contribution to your business’ profits?
Small businesses can save time and money by using real-time inventory tracking, warehouse management, which leads to smooth supply chain management. It is common for small businesses to be very casual about inventory management. This can have a negative impact on their long-term business health.
Small business owners can have better inventory control by using an inventory management program. It encourages inventory managers to use best practices in order to keep minimum stock levels and calculate the required order quantity.
Here are some things to keep in mind when setting up an inventory system.
1. Inventory should only be handled by one or two people. It will be easier to keep records and hold accountable.
2. For real-time tracking, get inventory management software.
3. Auto-track sales can be made easier by using a point of sale (pos) system.
4. Always keep a backup. In the event of a glitch, you don’t want to lose any important data.
5. In the inventory management software, set low stock alerts. This will allow you to avoid out-of-stock situations.
Track stock levels in real time
Track Any Changes
You can track inventory at every stage of your supply chain, from ordering raw materials to receiving them and then fulfilling orders.
Inventory Management software provides features that allow for the in-depth tracking and management of goods.
1. It can take time to manually track goods using spreadsheets. Managers would also have difficulty recording customer returns or damaged goods manually.
2. Integrating an inventory management system with your accounting system will give you a daily overview of stock levels.
3. The inventory levels can be automatically updated if the system is perpetual. It can track inventory turnover, returns, and many other things.
You can track everything, from new arrivals to old inventory
- Any inventory management software should have real-time inventory tracking. Managers can track stock levels to see how many goods are remaining. Managers can then place orders for goods well in advance. This helps to keep safety stock.
- Barcode scanners can be linked to aPOS systems to help keep track of the goods at all times, from the time they arrive until their departure. It integrates with inventory management software to automatically update stock levels.
- The integrated inventory management system keeps track of sales and which items are selling most frequently. This allows inventory managers to prepare purchase orders according to the trend. This ensures effective order management and warehouse management.
Track when items are ordered and shipped
- Inventory management involves ordering raw materials as well as finished products, and their sale and storage.
- Order management is crucial for e-commerce firms. An order management system can be used to help businesses track the shipment and keep customers informed.
- Drop Shipment and Back Ordering allow you to place purchase orders directly from the sales department. This feature allows manufacturers to ship goods directly to customers, ensuring timely fulfillment of orders.
- An order management system is the best because it can be integrated with any third-party app. All orders can be placed on one platform.
Track your shipment and orders
Keep track of when items are received and sold
These days, most products and packages come with barcodes. These barcodes contain details about the goods, such as manufacturing date and product dimensions. These barcodes are scannable upon arrival. The details are then saved in the inventory management program. The pos software automatically reduces inventory control system quantity when these products are sold. Managers can see stock turnover through real-time inventory tracking.
Keep track of your working capital
- Working capital is essential to maintain safety stock. It’s also important to manage customers, vendors, and the supply chain. To see how much you spend on which goods, integrate your inventory management system and accounting software.
- Reduce the time it takes for customers to pay you by shortening the outstanding window. This will increase your cash flow.
- To forecast demand and invest in products, use inventory control software
Optimize Inventory Traceability
- You need to consider current inventory levels, demand trends, and storage capacity in order to ensure you have enough stock.
- Pos system, inventory management software, generates sales analytics report. These reports help to determine the most popular products. These allow inventory managers to plan ahead for the holiday season. Managers can log in to the inventory system and review sales reports from previous Christmases while placing Christmas purchase orders.
- The ability to track variance allows you to spot the differences between actual and planned numbers.
- Create a variance report showing actual financial and inventory results. This report helps Small Business prepare inventory budgets and decide how much money to spend on which goods.
- Software for inventory management can speed up and eliminate errors in variance analysis.
Keep track of inventory in your hand
- Stock called safety stock is stock that businesses keep in reserve to avoid stock-outs. Inventory management software allows for real-time tracking. When integrated with the point-of-sale system, it allows managers to see the stock levels at any given time. Managers can thus ensure that safety stock is maintained.
- You can also set low stock alerts. If stock levels fall below the specified level, the alert can be sent to managers so that they can take the necessary steps.
Track Expected Inventory
A purchase order usually pays for expected inventory. Order management systems, such as order management software, can be used to track inventory and inventory received. The ability to track expected inventory allows businesses to accept orders from customers and provide estimated delivery dates.
If a small business expects a large order of ceramic cups by next week, it can easily be updated on their website. The customers now know that the ceramic mugs are only available after seven days, and they might need to wait a little longer for delivery. They can then place informed orders.