A system to control inventory is a useful tool to keep our internal processes optimized. It is also important to be clear that our merchandise in stock is money that does not move, its correct rotation and flow will directly impact our profits and profits.
Having an adequate sales system, which also controls our stock, will give us many advantages, but we suggest you some things so that you can have a good inventory management in your business. These are as follows:
Safe supply
If there is uncertainty in the supply of a limited number of products, you should be in constant contact with your supplier. What products are on the road and how long can you wait? To form the basis of your mutual agreement, you need to reach an agreement with your supplier on lead times.
In addition, after checking whether the transport can continue during this process, keep an alternative, if possible. This alternative may be more expensive, but keep in mind that for Group A products you may need to use it in an emergency.
If suppliers have insufficient production capacity or are unable to supply for some other reason, contact alternative suppliers as well.
Prevent overstock
Another problem you may encounter at such times is an excessive buildup of inventory due to a decrease in demand. Here, you must first ask the following question: For which products is this an important problem?
Temporarily keeping long-life products in stock may not be good for your KPIs, but getting rid of them may not be a priority in the current situation.
At the very least, you can keep these items in the warehouse as long as they do not occupy a limited warehouse space or block the space of the products sold, with the help of inventory management companies, you can do this work easily.
It is very important to focus on seasonal or short-lived products with a short shelf life. To remove some products from the warehouse, you can apply to an additional sales channel and request from suppliers to stop the supply of these products.
Also, don’t forget to change your order parameters when trying to cancel your existing orders. If you can quickly make the decision to keep/take out of stock in your strategy, you can avoid many future problems.
It is essential to manage and control the entry of merchandise, as well as its exit, to know at all times the level of existing stock. For this control to be optimal and in real time, it is necessary to rely on automated tools, but it is best to consult the team of inventory management companies in India.
There are companies, such as those of the retail or retail type, in which this real-time control is essential. There may be other cases, such as those that sell to order and wholesale, in which it is not a strictly necessary condition.
On the other hand, the control must take into account the capacity of the warehouse. This is an important parameter, because if it is saturated it can lead to losses, unnecessary costs, delays, etc.
The company has to keep the products in a structured location. All products must be identified to enable their recognition, handling and transport, in an agile way.
This is key when the inventory involves hundreds or thousands of products. An example is the case of a company that sells all kinds of hardware.
In this sense, maintaining efficient inventory management makes it easier to respond quickly to customer requests.