Avoid these inventory management failures

Knowing what’s in your inventory and where it’s at is an essential component of a well-run business.

By Henry Brown

Your inventory management is the heart and soul of your business. If you cannot find your items, or simply don’t order stock on time, you will end up losing money, and your business productivity will suffer. Many small start-up businesses have failed because they didn’t have an effective inventory management system in place. Read these examples of how the lack of good inventory control can ruin your business.

Making inventory management too complicated

When you start up your business, you might be looking for long-term professional IT solutions. Companies will try to sell you their software claiming that it will save you time and money. The truth is that if you only have a small operation and a limited number of items for sale, you will not benefit from a professional inventory management system. Instead, get a free solution on the Cloud that is easy to manage and update. This will save you both time and money.

Lack of clarity

You might have all your stock recorded on the computer, but no idea where to find each item. Try adding codes, letters, or colors for each type of item, or mark your boxes. If you run a small online store, you might have to think about getting a storage facility close to home. Look out for offers from Armstrong Steel Corporation to get a steel warehouse set up in your backyard tailored to your needs.

Using and losing paper records

Using paper in the 21st century is not a good idea. Paper records can be destroyed easily, and if you don’t find them right away, you will not be able to update your stock. If you have an online inventory management system that comes with a downloadable app, you will find it easy to update your stock real time and check your inventory on the go. You are less likely to lose your phone than a piece of paper.

Pricing errors

If you don’t track the purchase and sale price of each type of item you have for sale, you will easily make pricing mistakes. Use a system that automatically calculates the minimum shipping cost, as well as the minimum profits, so you avoid taking a loss.

Overspending

If you don’t keep an eye on your stock, you might end up ordering too many of items that don’t sell or are not needed. To get your supply chain in order, you might want to use methods such as demand prediction to avoid having to store unsold stock in your warehouse and having your money invested in goods that don’t sell.

To ensure that you have all the aspects of inventory management covered, you must tailor your orders, storage facilities, and stock-keeping methods to the needs of the industry, your customers, and your business. Keep an eye on market trends, bestsellers, and deadlines for ordering, and you can become a successful retailer. This advice also applies to manufacturers, who also have to know what supplies they have in stock and what they need to order.

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Henry Brown is an online marketing executive. When he isn’t talking shop he’s roaming the streets of London, uncovering the extra-ordinary in the ordinary.

 

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