Part of running a successful warehouse means effectively managing your inventory. Not only is your inventory a critical part of your business’s profit, but it can create serious problems if you’re out of touch with what you have versus what you need.
As a customer, it’s incredibly frustrating when a business is out of the product that you want to buy. Chances are, they’ll probably take their business elsewhere. When a customer turns elsewhere for a product, chances are that they won’t come back to you for business.
Therefore, it’s in your best interest to effectively manage your inventory. Here are some of the best tips to help you get started.
Create a SKU System
It’s crucial that every item that you sell has a SKU. A SKU functions as an individual identity for each item that you sell. By looking up a SKU, you’ll be able to find information about the product, and where it’s located in the warehouse.
You may want to consider using barcode software with your SKU numbers. You’ll find you’ll have a much easier time keeping track of your inventory if it’s easily scanned.
Regular Inventory Checks
It’s important that you a thorough inventory audit every now and then. Some businesses are so serious about their inventory being organized that they check their stock as much as once every week.
As a result, there is less confusion and misunderstanding. The idea is to manually go in and ensure that you’re numbers are in fact correct.
Use Inventory Software
Although keeping track of your inventory using only a manual method is cheaper, there’s a lot more room for error. As your business expands, you’ll end up spending more time sorting and counting manually than you can afford.
Consider investing in inventory software to lighten your load. You’ll not only track of your products much faster, but it will provide insightful analytics that are valuable for the growth of your business.
By keeping a close eye on your inventory, you’ll know what your most popular items are. Make sure that you have a generous supply of your hottest selling items at all times. Restock regularly so that you know your customers can always turn to you for what they need. Don’t bother restocking items that aren’t leaving the shelves.
If you don’t keep track of what you’re highest selling items are, then how do you expect to keep your customers happy?
When your inventory is managed correctly, then your profits will be a reflection of that. The more effort that you put into managing your inventory, the more you’ll see an increase in your cash flow and less confusion in the warehouse.