5 Ways To Make Inventory Management Painless

Posted Date : 13-September-2017

Inventory management can be a source of sustainable competitive advantage if you know how to play your cards right. Using the right kind of software for inventory management can help you immensely to analyse information and undertake smart decisions for your business. Keeping the pareto principle in mind and applying it to your business is a good strategy to follow. Here we have listed out a few ways by which you can make the entire inventory management process a whole lot easier:

Cut excess inventory: You will feel a whole lot better when you do this!

Inability to fulfil an order for your regular items, will be really depressing for your team and might reduce their morale. Overstocking and under-stocking of best-selling items is a widespread problem that can be solved through technology.

  1. Keeping inventory levels balanced is important for any business especially those trading in perishable goods. Use a sophisticated inventory management software that can remove all the guesswork out of inventory management
  2. When you bring in good technology to manage your supply needs, you can monitor seasonal changes in demand, maintain optimum inventory levels and in short take the guesswork out of the inventory management process.
  3. Overstocking is best avoided by proper projections made by an experienced manager, who has seen the changes in demand on a year on year basis. He or she can do it precisely by accessing data on product and sales history.
Say goodbye to data entry errors

Bar coding each item and tracking them through bar coded software is one sure shot way to keep leakages in check.

  1. With barcoded software now being linked to ERP software through electronic data interchange, business owners can get updated information in real time about the quantity of goods sold and the replenishment needed in warehouses.
  2. Something that can be critical during the carnival season when demand pull for best selling items is high owing to ‘lightning deals’ being offered coupled with flash sales offering steep discounts that last only for a few minutes.
  3. Now all you need is a bar code reader and a sophisticated inventory management software at the purchase station and things get sorted from the word: GO.
  4. You can examine things on first-in-first-out basis, record items coming into the warehouse, place more orders and cycle count inventory.
  5. Data entry errors are eliminated as bar code reader attached to the system records data in real time. So costly errors creeping in your purchase bill is a prospect you need not worry about at all.

Most CXO’s make the mistake of concentrating more on business development but having a strong back-end inventory management system is as important as a good front-line team. Both need to be in sync for the business to move in clockwork fashion and record high sales. As per the Pareto principle: 20% of your items will generate 80% of the business. So, these 20% items command 80% of your profits and therefore 80% of your time should go in managing these items so that you can fulfil orders better. Sometimes, an easier way to do things turns out to be more productive.
Over to you. How do you make inventory management painless? Let us know in the comments.

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