When your customers looking for items they want to buy from your store, but they find the item is out of stock in your store, then this is a sign that the stock control in your store is not well managed. If this often happens, then surely you will lose that customer forever. Therefore, you need the most suitable inventory management to fulfil demands with optimal inventory levels and monitor your stock management. This solution will raise your sales opportunity and also increase your customer retention so that they will not move to other competitors. You also need to download the best inventory management pricing scheme calculation to help you choose the suitable system.
To facilitate inventory control, you can use the full-featured inventory software. The software will manage your inventory automatically and in real-time. In addition, the best inventory software will certainly help you to get all information you need regarding the features, the costs, and the vendor.
Table of Content
- Make priorities
- Record your product information
- Periodic stock-taking
- Review your supplier performance
- Apply the 80/20 formula
- Review how your warehouse staff receives stock
- Sales reports analysis
- Restock your goods yourself
- Investing in inventory management software
- Use software that can integrate with other software
In managing your business and inventory, you need to consider several factors. These factors play important parts in your daily business activities. Implementing the right inventory software is one of the solutions, but you also need to look at the other factors. Read the 10 tips below to improve the effectiveness of your stock control:
Making priority for your stock will make you understand which items need to order more and more frequently, and which ones are more costly and move more slowly.
Generally, this priority scale is divided into three types, namely A, B, and C. Type A is items that don’t order more but the price is more expensive than the others. Type C for items that are cheap and sell well. Finally, type B, whose price range and movement are between types A and C.
Record your product information
It is important for you as an owner to find product information in your warehouse. The information in question includes SKU, barcode data, which one is the supplier and where the item is coming from, etc.
Another product information that you should know is the price. By knowing the price, you can make adjustments if there are changes that affect the price. For example, the item suddenly gets scarce so that the price rises, so on and so forth.
Some run it once a year, once a month, once every two weeks, or once a week. Each company has its own rules regarding the timing of stock-taking.
The purpose of this stock-taking is to know exactly how many items you have in the warehouse. If you have thousands of items, then you need the most refined inventory management system to help the stock-taking process.
Review your supplier performance
In addition to internal factors, you also need to review the external factors. For example the performance of your supplier. Are the deliveries done on time? When you return the products because some of it damaged does the supplier responds quickly? These points can be used as an assessment for your supplier.
Discuss with your staff whether your supplier’s performance is satisfactory. If not, then don’t hesitate to look for alternatives. Because bad supplier performance will certainly affect the availability of your items.
Apply the 80/20 formula
As the rules of thumb, 80% of your profits come from 20% of your stock. By identifying which items brought 80% of the company’s profits, you can give high priority to these items so that their availability will always be maintained.
Notice how many items you sell in a week or a month. Monitor the items flow carefully because 80% of your company’s income comes from these items.
Review how your warehouse staff receives stock
Maybe this looks trivial. But how your warehouse staff receives stock influences the stock condition in the warehouse. If your employee does not treat the items well when receiving them from the courier, then do not be surprised if the number of returns will be high by the end of the month.
Therefore, standardize the process of stock receiving. Train your employees as well as possible so that the item quality will be better maintained and the returns can be reduced to a minimum.
Sales reports analysis
Maybe what you have been doing all this time is analyzing whether today’s sales are better than yesterday. Then you develop a strategy on how to maintain the sales figure or increase it.
But what we mean by this point is a much deeper analysis. You need to find out why some items sell faster at certain times or otherwise. Are there trends that affect sales? Are there items that always sell together?
Those data will be very useful if you want to hold a promotion. For example, special payday promos, or buy one get one for items that are always sold together.
You can use the fully-integrated CRM-Leads to Generate real-time sales reports, covering sales activities, team performance, profits and losses, and many more.
Restock your goods yourself
There are several companies that use vendor services to order goods. However, we recommend that you do not do this. Why? More often than not, these vendors do not understand which items are of high priority and which are not.
As a result, you are going to overwhelm when the demand from consumers suddenly rises. Therefore we encourage you to do this job yourself. You can use the outstanding inventory management software to help you make the purchasing process easier.
Investing in inventory management software
If at this time you have just started your business, maybe managing your stock control items is not really time-consuming. You can control your inventory manually because it only has a small number of items.
As your company grows, your inventory will eventually grow. At this time, it is certain that managing your stock control manually is not possible anymore. It is time for you to invest in inventory management software.
However, before you decide what software you want to use, make sure the software meets the following criteria; equipped with comprehensive analysis, and it is easy to use.
Use software that can be integrated with other software
Using software that can manage your stock control is definitely helpful for your company. However, it would be better if your software can integrate with other software, such as accounting and POS.
Management of stock control is something that companies often ignore because it is not crucial. However, excessive control of stock can cause the company to experience heavy losses and stockpiling of goods in the warehouse. This is what allows companies to use HashMicro’s comprehensive inventory software as a solution to solve this problem. By integrating your software, your entire business process from upstream to downstream will run better. Starting from the purchasing process that automatically runs when items availability is running low, then recorded in the inventory system so you can carefully control it, recorded sales using POS, and the company’s financial statements are made in detail using accounting software.
One important remark is that you also need to get the HashMicro software pricing scheme calculation so that you can get the price description. It is also important because you can try the software demo and consult your company’s needs.
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