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Four Best Practices in Inventory Management

Four Best Practices in Inventory Management

January 4, 2014InventoryManagement1177Views

When it comes to running a successful business, nothing is quite as important as managing your stock in an efficient, accurate manner. In order to do this, you’ll need to implement a series of best practices that ensure everything is handled in the right way. If you’re new to the commercial field, you may be unaware of what these are. Luckily, creating an effective inventory management program is merely a matter of creating a few workplace initiatives and purchasing a relevant software platform.

 

1) Analyse Your Supply Chain

Woman taking care of Inventory Management
Image courtesy of [stockimages] / FreeDigitalPhotos.net
From the source to the consumer, a lot has to happen before your product or service is actually useful. At each step of the way, there may be a chance for improvement when it comes to optimising your stock handling processes. For this reason, you should take the time to analyse your supply chain in the following ways:

  • Take your shipment and transaction data and manipulate it into information that highlights your demand. Some commercial software may be required.
  • Create a detailed inventory profile including stock data, packaging locations, warehouse & storage settings, etc.
  • Make a forecast of future demand, form a plan to hit this target and create some metrics to help you analyse the results.

As you can see, there is plenty involved when it comes to handling your supply chain. Analysing each step is essential for inventory management however. From the raw materials to the finished product, take a look at each stage and then figure out how to optimise and create some realistic targets to aim for in the future.

 

2) Conduct Regular Reviews

Keeping on top of what’s happening in your business is also essential for its survival. When it comes to the stock within your company, examine the following:

  • What stock levels do you currently have?
  • Which items are selling exceedingly well?
  • Are there any products performing poorly?
  • What trends do you need to be aware of?

While this can be done by hand, it may be a lot more efficient to just install some sort of commercial programs on your workplace computers. If your business is complex, this stock management software offers power and flexibility to stay on top of your internal operations. From handling multiple warehouse locations to categorising your inventory, this digital solution will be much more efficient and accurate than recording everything by hand. The best software will also update automatically so you can immediately see what’s happening within your organisation.

 

3) Optimise Quality Control

When it comes to sending your goods to the public, they have to be durable, safe and without damage once they hit the stores. Thus, you’ll need to manage quality control at each stage of the production process. From sourcing your raw materials to assembling each item in the manufacturing plant, you should be there ensuring everything is done to your high standards.

With the right methods, you can even cut costs while still ensuring the same level of quality that your customers expect. This is one of the primary aims after all! From supply chain processes to maintenance, repair and operations (MRO), it is easy to see that proper inventory management can help keep a business competitive. On the other hand if it is done poorly, it can detract from the overall productivity and create products that are substandard and needlessly expensive.

 

4) Safely Store Your Goods

The last best practice that you will need to consider is storing your stock. This will ensure that it remains undamaged by pests, water or any other dangers so it gets to the store intact and looking great! Transportation is also a crucial matter here as you’re effectively storing your stock from the warehouse to the retailers. Thus, you should examine your storage facilities as well as your company fleet to make sure that all products are looked after in the best manner possible. By accomplishing this, you will have implemented the right setup at all stages along the supply chain.

 

By following these steps, you can see to it that your business remains competitive without spending needless amounts of your allocated budget. The right sort of best practices can give any business an excellent chance of success with streamlined processes and top quality products.

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