The inventory management system is the sum of all the processes that have to do with managing a company’s non-capitalized assets. Its main focus is on the stocks, but it also involves business equipment and other assets. The purpose of this system, is to keep the inventory optimized, to avoid running out of stock, having too much stock, shipping delays, or having equipment problems that could impede the normal business activities. The key elements of this system are storage, ordering and forecasting. Since each business has unique needs, each company will have their own strategies for putting together their inventory system. Nonetheless, there are some key strategies that all businesses can apply to improve their existing inventory systems.
Keep reading to discover how to improve your inventory to cut down your costs and boost your sales.
Invest In Good Inventory Software
Manual inventory should be a thing of the past, but many small businesses still stick to this practice, because they don’t want to spend money on software solutions. Nonetheless, a good software will pay for itself in a couple of months, after which it will continue to generate money. Our advice is to opt for a mobile software, so that your inventory staff can access relevant data at all times, no matter where they are. We recommend the Sortly Business App, as it is very easy to use, and it comes with numerous modern features such as visual representations of the inventory or barcode scanning.
Set Workflow Alerts
The inventory workflow can be subject to numerous unexpected changes such as later orders, delayed or incorrect merchandise and so on. These changes can affect the whole supply chain, from the main supplier, to the manufacturer and the customer. With manual inventory, these errors can only be discovered upon the completion of inventory control and stock reports. However, nowadays retail and distribution companies use modern tools in order to set relevant workflow alerts, so that the warehouse staff can handle these issues as soon as they occur. Such errors usually mean a waste of money and a lower customer service, so it is important to deal with them as soon as possible.
Improve The Accuracy Of Your Forecasts
By using quality forecasting tools, you can better process your historical data, in order to make more accurate forecasts about the future performance of your business. This way, you will be able to better anticipate your stock needs so that you are better prepared to handle the demands of your customers, thus maximizing your sales.
Forecasting tools are usually an integrated part of the inventory management software. Make sure to choose a software solution with comprehensive analytics tools. Aside from algorithms and formulas, the forecasting tools should also come with user friendly features like charts and tables that allow you to visualize relevant data in an easy to understand manner. It also helps if you choose an app with automated purchasing capabilities, so that you can improve the efficiency of your purchase orders.
Improve Your Warehouse Management System
The warehouse management system involves all the processes that allow you to monitor and control the stock found in your warehouse.
Improve Your Warehouse Management System
The warehouse management system involves all the processes that allow you to monitor and control the stock found in your warehouse.
To improve this system, you will need an inventory app with a barcode scanning function. This way, your staff can scan products as soon as they arrive, and send the data immediately to the main inventory system. This will significantly decrease the chances or picking and shipping errors. If you have several warehouses, make sure to choose an app that can handle multiple locations.
Delegate Tasks Responsibly
For an efficient inventory system, you will need a main inventory manager that will have a clear overview of the whole supply chain. Secondly, your business will need and app that can be used by several staff members, and which allows the inventory manager to easily delegate tasks. It helps if the app is easy to use, so that you don’t depend on specific people for certain tasks, as this can create workflow problems when those specific people are unavailable.
I hope you enjoyed this article about how to improve your company's inventory management system and manufacturing production efficiency.
Interested in more articles about manufacturing and shipping?
Read My Blog Posts:
- 5 Ways To Improve Your Business Shipping Efficiency
- Business Launch Logistics To Learn
More Bootstrap Business Blog Below
Delegate Tasks Responsibly
For an efficient inventory system, you will need a main inventory manager that will have a clear overview of the whole supply chain. Secondly, your business will need and app that can be used by several staff members, and which allows the inventory manager to easily delegate tasks. It helps if the app is easy to use, so that you don’t depend on specific people for certain tasks, as this can create workflow problems when those specific people are unavailable.
I hope you enjoyed this article about how to improve your company's inventory management system and manufacturing production efficiency.
Interested in more articles about manufacturing and shipping?
Read My Blog Posts:
- 5 Ways To Improve Your Business Shipping Efficiency
- Business Launch Logistics To Learn
More Bootstrap Business Blog Below
