6 Techniques to Improve Inventory Management
Inventory management includes sourcing and storing both raw materials as well as finished goods in a facility. It also incorporates warehousing and processing the finished products as and when required. The process of managing inventory is not as simple as it seems. For an online retailer, it might feel like jumping through hoops to efficiently fulfill inventory in the warehouses. Inventory management is imperative for any business to reduce operational costs, increase customer satisfaction, offer faster delivery options, maintain optimum stock levels, and avoid overstocking. If you don’t know how to manage inventory for your business, then this article is for you.
How to improve inventory management?
Check out these six techniques to make your inventory management better and save huge time, costs, and efforts.
With demand forecasting you can make well-informed decisions to improve your supply chain operations and know how much inventory is needed to fulfill the demand, when to rent storage space for the inventory, or hire professionals for the management of inventory. To facilitate this, you can leverage various forecasting tools or rely on inventory management software that are readily available.
Check safety stock inventory
Also known as buffer inventory, safety stock is the additional products or goods you keep to supply in case of emergency. To determine how much safety stock inventory is required, calculate maximum daily usage, maximum lead time, average daily usage, and average lead time.
Conduct inventory audits
Carrying out timely audits along with warehousing receiving measures can make your business manage inventory efficiently and effortlessly. Monitor holding costs like inventory shrinkage, depreciation cost, and warehouse staffing to avoid any kind of discrepancy.
Keep a record of SKUs
Keeping a tab on all your SKUs will help you to track, update, and manage goods throughout all your sales and distribution channels, from a single place. You can also avoid problems like low inventory levels or overstock inventory.
Proper inventory distribution across different warehouses
Right inventory distribution is imperative to fulfill orders at minimal shipping cost and in minimum time possible. You can achieve this goal by generating various reports that will tell you about the order demand at a particular service region. You can maintain the inventory accordingly.
Rely on inventory management software
Using inventory management software can be really helpful to synchronize SKUs and orders. Besides, you can also have visibility on the inventory, fulfillment centers, sales channels, and other significant processes. The software will digitize various processes to help you save time and cost of inventory management.
Just like inventory management, if you need to streamline logistics management then opt for Shipsy’s logistics management software that includes top-notch features. The software is SaaS-based and can be deployed over the cloud in no time.