You may ask why you need to keep the inventory for your business, as this doesn’t give you any visual advantage in terms of cash. Rather than this, it requires you a certain amount of money to manage and maintain it. However, the inventory certainly gives you an extra advantage when it’s about buying in bulk, as the economy of scale depicts that you are to pay much less for each item in this case, while you are not in a position to take the same advantage in case of small bulk. Moreover, not having an adequate storage space pushes you to the uncertainty about the supply of your products in time. This being said, an inventory not only lessens your work, but also keeps you out of tension about your goods.
Managing inventory is something you need to emphasize on to avoid further hassle. Let’s talk about that.
Cut Your Coat According To Your Cloth
The first thing to take into consideration when you are keeping an inventory is to think about the present and future growth of your business, and according to this, to fix the dimension of the room you chose to deposit your good / stock. Then you have to match the stock with the inventory list. When you do this, also keep in mind the possibility of an emergency situation when you need to stock more. The security should be a concern and also the proximity from the suppliers and vendors’ place of business.
Labeling Is a Must
Lack of proper labeling may end up with a mess. Label and sort the goods correctly and accurately after your receive them, and you will always know what you have and in what quantity.
Shape the Shelving
Shelving is probably the most important thing in stock management. Proper shelving means a proper management. Keep in mind that your shelving should fit the space and it should be adjustable.
Match the Invoice
While receiving the inventory, the first thing you have to do is counting the goods you get and matching them with the invoice you get from the supplier. If any mismatching is found, sort it out and immediately contact to the supplier. Make sure that they are not getting paid before you fix it.
Distinct Item Number
Keep distinct Item numbers for each package or bulk. Don’t make the number too complex. Use the combination of letters and words to label them, but remember not to mix up with the letters like ‘O’ with the number 0 (zero).
Same Unit of Measure Every Time
Try to keep the unit of measure constant while keeping the inventory. This will keep you out of further hassle.
This is the hardest part of the inventory management story. You will need to know exactly why and how you have to do it. Let’s get down some points.
- Your total asset is something which needs to be assessed and tracked regularly – so is the need of counting the inventory, because the taxes and other formalities have to be managed.
- Counting the inventory gives you the advantage to supply the goods according to the demand of vendors and customers.
- Counting helps you to forecast about the sales volume. You can clearly track when the stock is packed and when it is vacant. You can calculate the rate according to the season or occasion, and you can easily plan how much bulk you need to buy in a certain period of the year.
- Theft and natural disaster is something you have to consider as possible. In that case, the insurance is your only hope. This means that if you don’t have a counting system, you cannot claim the insurance. Apart from this, you will need to have a proper document for that.
After counting the stock, you always need to match it with the main stock list. There are available today plenty of apps or software that can help you if you want a proper inventory management system. For your business, the best thing that you can do is to let the technology take care of your inventory management.