Best Practices for Effective Inventory Management
If you want to succeed in inventory management, there are certain methods that you need to apply to it. You need to begin by categorizing your inventory. That means you have to know which of your items are more valuable than others. One of the ways that can help you in doing this by using the ABC sorting formula. Using this method you sort your items three categories. The the strategy is used to ensure that the warehouse space is fully utilized. It also makes sure those items that are so important can be accessed easily. If you have some items that are not very essential, you allocate them the least space and spare the largest space for the ones that are on demand.
There are several ways that you can use to manage your inventory as there is no strict law on what you must do. When you have a vendor managed inventory; the supplier can access your data and use that information to ensure that you have what you need most.
You also need to make sure that you have a plan in place. Once already you have listed what is in your warehouse. The next thing is to plan for what to do. You inventory plan needs to out in place your marketing catalog, e-commerce as well as merchandising departments. When you have some items that you are thinking of disposing of; it is important to let all the departments participate in making the process quite fast.
One of the important things to do when you have limited stock s to get a handle on demand. Many factors may determine the amount of stock that you have at any one time.
The other thing is to automate all your processes. You should ensure you have a clean account of your inventory but every time using lesser tike to count what you have. That is why it is important to ensure that you use automated systems. Things like smartphones are very handy in scanning all the items that you have and barcode them when you want them to leave the inventory.
The purpose of the inventory management is to make sure you meet the customer demands while you are minimizing the costs of transporting items. You will end up spending less amount of money and time when you have an effective inventory management. When you have an effective inventory management, you will be able to know what each department needs in term of stock an what quantities are needed. You need to work closely with the supplier so that you can ensure that you have everything that is in demand. At the same time the marketing department is supposed to help you assess the demand.