8 ways to make sure your inventory management is on track
Every company, no matter the size, has to get inventory management right to minimize costs, maximize profits, and deliver superior service. It can be tricky to find the right balance between having enough inventory on had to meet customer demand and overstocking. Want to make sure your inventory management is on track? Here are 8 things you can do.
- Find the right stock level – enough to avoid stockouts, but not so much that you’re overstocked with expensive or slow-moving inventory.
- Focus on your high-volume, high-profit items. Remember that 80% of your profits tend to come from only 20% of your inventory, and make those items your main focus. An integrated, cloud-based solution gives you real-time access to data that lets you know which products are moving and which are not.
- An automated inventory tracking system streamlines your inventory management processes and frees you up for more strategic tasks.
- Make sure you have accurate and consistent data. Establish and communicate consistent business practices for recording stock information.
- Break the inventory spreadsheet habit. Using a manual process to manage your inventory opens you up to a host of challenges, including time-consuming data entry and outdated information.
- Learn from the big guys. You might think that you’re too small to invest in an inventory management system, but today’s cloud-based technologies make it easier and more cost-effective for small companies to take advantage of the same strategies larger companies use.
- Make sure your critical systems talk to each other. A robust inventory management solution can integrate with marketing, sales, legal, and other areas of your organization, so that everyone has a consistent, real-time view of important information.
- Create a backup plan to protect your inventory data. Make sure you have an off-site backup, or invest in a cloud-based option.
Keeping the right quantity and mix of products on hand is a challenge for any company. MicroAccounting offers a range of solutions, including Sage 100, that can make your inventory management more efficient. To find out more, call us today at 855-876-3773.