Managing inventory might not necessarily sound like the most interesting or important of tasks: until you have to do it! Then you’ll know that managing inventory is important for businesses of all sizes.
Many a business has run aground because of inventory issues: not having good systems in place and ensuring you stick to them.
If you don’t have the correct stock, and enough of it, you’ll miss out on sales. Too much inventory and you’re paying for overhead costs that you don’t need.
Start By Creating A System
A system is the most important thing. What are the components of the system? Well, first you’ve got to plan how to physically store and organise items in a logical manner that will make it easy to keep track and count stock.
Then, once you’ve got this basic system of organisation mastered, you need to carry on and keep the stock room organised, know where items are kept and have a good record-keeping system.
You could also enlist a bit of help. Some organisations manage inventory by using software or an app to keep track of stock levels. The right software could also facilitate getting the right items in your inventory to your clients, according to their needs.
Stick to your Inventory Management Plan
It really is important to stick to your inventory management plan. You should regularly do a formal stocktake to measure variances to recorded stock levels. If you have too little stock, it will lead to missed sales and lost customers. But having too much stock can lead to cashflow problems.
A little help from your friends
Inventory is no easy business. Some companies work with your suppliers to manage inventory and improve the timing of purchase orders. Other companies hire staff to be directly in charge of inventory control. A dedicated specialist means building expertise and efficiency in this area. Still, other enterprises hire consultants to help them develop and manage their inventory, including by implementing plans and strategies and keeping an eye on shipping and receiving, accuracy, and accounts.
Getting on the data train
How are you going to keep track of not only the inventory that you have, but how it gets out to your customers. To track inventory, some organisations use spreadsheets; others use apps and computer programs. It’s all about figuring out turnaround times, and allowing you to organise the right level of stock. Other important data to track relates to how often you’re selling to clients, and how fast you’re delivering to them. There factors will also influence your turnover.
If you need more stock you might consider a cashflow loan from Merchant Cash. And if you’re thinking about a commercial loan more generally, you can apply here, or just contact us for a chat and more information.