At this time of the year, business owners are already busy evaluating whether they are successful in their business goals, specifically the targeted revenue and customer satisfaction levels. If you’re one of those who have not reached these goals yet, then consider revisiting your inventory management process.
Why can’t I meet their demands? Poor inventory practices.
We have listed inventory management best practices for your business’ success:
1. Evaluate your current inventory technique/s
There are various inventory techniques that are in practice today — Just-In-Time, ABC Analysis, Minimal Stock Level, and so on. These techniques can optimize the inventory process given that they are the best fit for the type of business your a re running. Take a second look at your current technique/s and evaluate its efficiency in terms of cost, time, and labor.
2. Keep track of your inventory levels
While it is recommended to keep low stock levels in order to avoid overhead expense and space shortage, keeping track of the inventory levels depending on the demand would be best. A good inventory management system will let you know the most beneficial inventory levels for your type of business. NetSuite has a demand based inventory replenishment feature that will ensure that you have enough stock while keeping excess to a minimum.
3. Employ strict quality control
Your product or service gets directly to your customer. One mistake can cost you money and dissatisfied customer. Employing stricter measures to ensure that the product or service that will reach the customer is always at its best quality. Come up with a set of standards for your employees to follow. If you need to double-check the goods you receive from a supplier, so be it. Remember, your product or service is your brand.
4. Include inventory management strategies in planning. Always.
Inventory concerns are usually kept within persons who are managing it, thinking that these ‘petty’ concerns do not need much attention. Most of the time, these concerns are actually the ones holding your business down. The tiniest shipping error can break your business, while a well-planned inventory management process can give you a boost. When making important business plans, always make sure that inventory management is a topic of conversation.
Of all inventory management practices, this is should be your top priority. Manual inventory can expose your business to drastic human errors. If you’re still wondering how an inventory management system works, check out our previous blog.
Inventory management plays a critical part in every business. So before you start planning your next big move, consider these inventory management best practices.
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