Managing inventory is a vital process for running your company profitably. Being out of stock consistently harms your reputation and can put you out of business. However, you can’t be agile if you tie up too much capital in products. Review key pointers for successful inventory management.
Find Helpful Software
The right apps and programs can help you keep a watchful eye on your inventory without expending excessive effort. For example, operating a craft business requires researching the market demand, understanding who the ideal customers are, choosing a strong brand name, and differentiating your product line within the right niche. The business often involves travel to festivals and shows for promotion among your target audience.
Keeping up with sales and inventory in the midst of such work can be overwhelming. The right craft store POS provides an online service that allows businesses to handle transactions and inventory management in any location. All information is secure on cloud servers that routinely back up the information. That way, if you lose or damage a device, recovering your data is as easy as logging in from another machine.
The subscription allows you to have free customer support to resolve any confusion quickly. Additional services, such as reporting, rentals, repair tracking, and class management, are available with the system as well.
A satisfactory POS system also integrates with your website. This feature allows customers to see what’s in stock and will draw them to your location to boost sales while providing you with vital data about product movement.
Schedule Audits
Don’t leave inventory audits to chance or rely solely on your automation. You’ll need to count your inventory physically and verify that your system is 100% accurate. Comparing both allows you to determine the validity of your processes and projections.
Designate a time to do inventory audits annually, semiannually, or quarterly. Get into the habit, even when your business is small. The routine ensures you don’t get behind or have issues when sudden expansive growth happens. You also demonstrate responsibility to any potential investors or partners because you know your numbers and can back them up.
Regular audits help you to account for and fight shrinkage. All companies with physical products have to combat issues of inventory seemingly getting up and walking away. While damage, loss, and theft are inevitable to some degree, regular monitoring through audits can identify and minimize losses.
Cooperate With Your Vendors
You rely on your vendors for excellent service, and it can be easy to become demanding as their customer. However, the day will come when you need their help or assistance beyond the dictates of your contract. That might involve an extension on a payment or networking opportunities.
Treat your vendors as valued partners and not servants to do your bidding. Avoid taking advantage of them. Your mutual success leads to long-term gains and a strong brand.
Communicate clearly and often with vendors about your inventory needs. Pay bills early or on time. Understand how they operate and their challenges in meeting requests. With a collaborative spirit, your suppliers will gladly offer you consideration or assistance when you need it.
Prepare for Unexpected Events
Despite your best projections and constant monitoring, consumer demand can change in a moment, leaving you out of stock on popular products or overstocked on items that are no longer in vogue. Recognize things will never go perfectly and create contingencies.
Start building your credit so that cash flow problems do not interfere with your ability to load up on popular high-margin items. With a line of credit and the right business credit cards, you can keep your sales moving.
Create a strategy for dealing with overstock. You will have to overbuy on occasion to ensure you have the right items available. Devise a system of moving excess products to cut losses so that you can move on to the next thing. This doesn’t always involve selling at a deep discount. You may be able to rebrand or market items in a new way to still get a decent return.
The preceding steps can help inventory management become less of a pain. Making intelligent decisions can ensure managing your inventory generates more income and fewer headaches.