Effective inventory management remains a dream in the minds of many retailers. Errors and inaccurate inventory records are frequent pains in a retail business. Even with the current advancement in POS system technology, achieving efficiency in managing inventories is still a mind-boggling issue.
In this regard, as an investor entering in the business field, it is essential to have strategies on how to manage your inventories. As you know, like in a war field, strategies are the key to winning. Regardless of the might and potential of your weaponry, without an effective strategy, overcoming your enemies can only happen in a dream.
With this in mind, effective inventory management calls for effective strategies. Here are the top three strategies:
- a) Always use vendors that suit your business
Your stock levels depend on the reliability of your vendors. They determine whether you will have stock-outs or overstock to avoid delay in delivery time. For this reason, you need to assess and keep analytical data of your vendors. With time, you should drop suppliers that always deliver your order late and retain those with consistency deliveries. Importantly, you should only retain vendors who suit your business operation and kick out those with a negative impact on your inventory management.
- b) Adopt mobile and cloud-based inventory management software
If you are a merchant in this era and you have not accepted current inventory management technologies, then effective management of your stocks will remain a dream. The inventory management systems encompassed on the mobile and cloud POS systems help you to monitor your stocks at any time of the day or night. Hence, you always have information at the fingertips concerning your inventory so you can know the right time to re-order. Also, you can customize the system to place orders whenever your inventory hits the re-order level automatically.
- c) Develop a comprehensive demand and supply plans
No doubt that inventory management goes hand in hand with demand and supply. To effectively manage your inventory, you must match it with the current levels of demands of a particular product. In this regard, you have to develop an overall demand and supply plan. This will help you to know when a product is upon request, how long it takes to receive and deliver orders from the supplier, and the frequency of re-ordering.
In a word, effective inventory management lies on having reliable vendors, using the right technology, and developing comprehensive demand and supply plans.
— Square Canada (@SquareCanada) 16 de junio de 2017