Are you looking for a comprehensive way to keep track of your company’s inventory? You’re in luck because a wide assortment of options exists for this. Different businesses do things in very different ways, so not all of these will likely fit your needs. However, we’re sure that of the following five options, you’ll find one that fits your unique requirements.
First In First Out
‘First in, first out’, also known as FIFO, is an excellent way to organize and track inventory. This is especially true if your products include items that are perishable and may go bad after a certain amount of time. This system involves making sure your oldest products are sold first, rather than your newest. This will require an organized warehouse and plan to keep the product in the proper place to be sold at the right time.
Contingency Planning
Another inventory management option is contingency planning. This is a type of management where you have the means to handle problem situations that come up. This could be because a product is discontinued or your sales go up and you oversell or many other reasons. Having a contingency plan makes sure you are prepared for whatever happens in terms of your inventory.
Par Levels
Our third inventory management system involves the implantation of par levels of your items. A par level is how many of a product you need to be available at any time. At the point where inventory breaks below that number, a new order is brought in. This is a great way to ensure everyone on the team has a standard and can make decisions according to need.
Regular Auditing
Often, businesses rely on reports and software to determine the amount of inventory available. However, there also needs to be regular physical inventory done, which is counting all inventory at one time. This might be done only once a month and can be tedious. Spot checking is another system that you can do through the year. If you have clearly marked inventory, this can be much easier.
Prioritization
One of the most common prioritization systems for inventory is the ABC method. This involves separating products that need extra attention from other products. For instance, A products will be your high-value items that don’t sell often, B would be the products of moderate value and sales, and C are low-value items that sell often. A require lots of attention, B requires somewhat less, and C requires the least attention of all. By keeping these in separate areas, it can lead to less time spent on things that don’t matter as much, which leaves more time for those that do matter to a larger degree.
If you are looking for the right inventory system for your own business, one or more of these might be the solution. Often, you can choose a primary system and then incorporate extra levels of management as required. Keep track of your inventory by knowing your warehouse is organized and taken care of on a regular basis.
Sources:
DesignsnPrint.com
https://www.shopify.com/blog/70603013-warning-youre-losing-money-by-not-using-these-8-inventory-management-techniques
DesignsnPrint.com
