It is essential to keep an eye on your stock and inventory when you run a business. These two are the engines of any business, and losing sight of them could bring challenges to your operations. According to experienced entrepreneurs, errors in your inventory log may be due to a breakdown in your logistics chain more than one-third of the time. Fortunately, you can avoid the inconveniences of improper stock and inventory management. That said, here are some tips to help you out.
1. Audit your inventory
Some businesses do daily, weekly, and monthly stock counts. Others, however, prefer to do a comprehensive check annually. How often you check will depend on the type and size of business you operate. However, the main point here is not about the frequency of your checks. Instead, it has more to do with how efficient your auditing system is. The thing is, when you run a store, whether online or physically, you can have a fair idea of what is left in your inventory.
Therefore, auditing your goods can give you a clearer picture of the quality of stock left in your inventory after doing your physical counts. Stock auditing involves reconciling what is left with the general ledger. It also includes testing high-value counts and error-prone goods you may have in the inventory. Indeed, stock auditing is a thorough exercise that may require you to get expert help to get it right.
2. Find an alternate place for unsold goods
This is particularly essential if there is a likelihood of dealing with excess stock. Perhaps, your business’s storage system is not ideal for the extra goods you have on your hands. Moreover, when your goods include perishable items or compromised quality, it could be time to reconsider your options. For example, you may want to use a climate-controlled storage facility. This becomes useful if your mini-warehouse is not conditioned to keep your excess stock in good shape for the required period. The last thing you want to happen is to find your goods deteriorating due to the effects of the external weather.
3. Constantly monitor inventory level
Unfortunately, research indicates that store owners often ignore the importance of monitoring inventory levels. This often leads to excess inventory or a shortage, depending on the circumstances. Either way, it is recommended to avoid both if you do not want to experience the inconveniences associated with them. When your inventory is in excess, it increases the perishable rates of goods.
On the other hand, when there is a shortage, you could be dealing with disappointed loyal customers. One thing that cuts across both divides is that whether there is excess or shortage, your business would still lose money. This explains why you need to constantly monitor your inventory levels to update yourself and the staff authorized to keep an eye on stocks.
Last but not least, try to keep track of the product information on all your goods to help you practice better inventory management.