Effective inventory management is vital for growing a company, it can make or break your business. If you want to remain profitable and competitive in your business, then you need to know cost-saving and profit-boosting inventory management techniques. Poor management might lead you to revenue losses and potentially lose customers.
Here are some critical steps to handle all operations relating to inventory management.
Use A Cloud-Based Inventory Management System
With multiple warehouses and worldwide shipping, managing inventory manually is quite impossible. Modern inventory management software can transform entire operations, and prevent problems of overstock/overselling by automating huge chunks of your inventory management process.
Keep Stock Records Accurate
Always maintain your stock records accurately, as you will have ideas of how many items you have on hand and when you need to re-order. This will help you in the accounting and marketing of your business.
Hence, it’s important to manage inventory and stock records accurately which will save you from major headaches in future. This information should include SKUs, barcode data, the supplier’s country, the number of stocks, etc.
Track your sales
If you have inventory that isn’t moving at all or sell ever again, you have to liquidate those items. A good inventory system shows your inventory levels, sell rates as this can save you money in the long run.
You should create plans to handle each part of the chain because problems in one place will perpetually affect other parts of your process.
Goods Received Note
It is an internal document that authenticates goods are received in perfect physical condition, as per terms and conditions in the purchase order. Goods Received Note (GNR) maintains correct inventory information and plan purchases to save procurement costs.
Periodically you have to actually manage inventory to make sure to co-relate what you have in stock and what you think you have, even though you have good inventory management software. This way of auditing your stock varies from different companies, some count annually, monthly, weekly or every day. This way of spot-checking is useful for products that are selling-out fast or have some stocking issues.
Manage Sales Orders
The sales order is the backbone of your sales workflow. Businesses that stock, manage and move inventory for the sake of sales, have common requirements to manage sales orders and uphold customers expectations in a positive light. It’s more than just organizing goods, which requires the right alignment of network strategy and technology systems.
A sales quote is used when a potential buyer wants to know the cost of a certain amount of goods and services. Inventory management with automated tools will help you improve quoting speed to give base quotes.
Delivery & Distribution
Dividing inventory into many shipments will definitely allow import and export goods to places where inventory needs to be delivered, thereby reducing transit time to a great extent along with less shipping costs.
To sum up,
Inventory is your company’s biggest asset, it helps you to cut your costs, examine sales for future forecasts and maximize your profits.
To help retailer manage inventory better, ConnectPOS has developed features specializing in warehouse management, including:
- Multi-warehouse management right in the POS system
- Multi-source inventory system for the complete management process
These features cover all the essential steps in the inventory management process as well as connect with the POS system and eCommerce platform. With ConnectPOS, retailers can create a seamless omnichannel journey cross-platform.