Inventory management starts with a defined process, but inventory management software tools can also help. This guide will help you improve your inventory management. What does inventory management include?
- There can be numerous types of categories like raw materials, cycle inventory, and MRO goods
- Inventory management includes ordering, stocking, and using business products
- Managing your inventory helps you understand and plan which stock needs restocking and which are the most sold products
Nowadays, most businesses strive to manage their inventory (items they sell) – for repair stores, cell phone repair shop software provides inventory management. That is why inventory management has become a crucial factor in making your business profitable. However, when the inventory is poorly managed, customers are left unsatisfied. This mismanagement drives customers to move towards other companies.
At the same time, the lack of inventory management from businesses leads them to overstock. Excess inventory not only ties up valuable cash flow, but also costs more to store and track. Overall, work and planning are required to achieve efficiency in your inventory management. Once you do that, your business will be brimming with profit.
Before we discuss how you can efficiently manage your inventory, let’s have a look at what inventory comprises typically of:
Types of Inventory
- Unfinished products
- Finished products
- In-transit goods
- Raw materials
- Anticipation inventory
- Buffer inventory
- Cycle inventory
It helps to sort your inventory, so you know which items fall into the same category, and then you can manage accordingly.
Tips to Manage Your Inventory Efficiently
Track all product information
Keep track of your inventory by making a list with every product detail. This includes SKUs, barcode data, suppliers, and countries or origins in case there are any fluctuations due to changing factors like scarcity or seasonality you might want on hand when pricing items at sale prices later down the line!
Prioritize your inventory
When you have a lot of inventory, it can be hard to know which items are most important for your business. By putting them into categories like A or B depending on how often they’ll need replacing and the cost-of-reorderable Physical Inventory per item (PIQU), experts say that this helps prioritize what needs ordering more frequently while still ensuring all necessary supplies get covered! They say cell phone repair shop software does exactly this for cell phone repair store owners.
Analyze supplier performance
You can’t afford to have an unreliable supplier. If you’ve been dealing with problems such as being late on deliveries or shorting orders, it’s time for a change in partners! Contact the company and find out what their issue might be. Try to sort these problems as soon as possible. But if you feel it is not working out, be prepared to switch partners or deal with uncertain stock levels and the possibility of running out of inventory as a result.
Audit your inventory
The methodology is key when it comes to inventory management. Some businesses choose to do a comprehensive count once per year, while others might check on their hottest items daily or even weekly; whatever frequency works best for you, make sure that your physical counts match up with what’s actually in stock! Cell Phone Repair Shop Software does this job efficiently for cell phone repair stores.
Consistency in how you receive stock
Making sure your incoming inventory is processed properly and consistently will help you sleep at night. A standard process for each employee receiving stock, as well as checking that all boxes have been received correctly, can make the difference between revenue loss or gain! Remember, discrepancies in how new stock is taken in could leave you confused at the end of the month or year. Ensure all your employees who receive stock do it the same way and that all boxes are verified, received, and unpacked together, accurately counted, and checked for accuracy.
Practice 80/20 inventory rule
The most important thing to do when you’re running a business is manage your inventory. You need 20% of the items in stock for sure, but 80% comes from just 1/5th! So make sure that these high-profit products get top priority and don’t fall short on attention during sale cycles, or else it’ll cost ya money–literally!!
Understanding your sales totals and the broader picture of how items sell is important to keeping inventory under control. You should analyze this data on a daily basis and update it when necessary so that you can stay ahead in what’s going around! You should analyze what items you sold and how many, and which product sells the most and faster.
Get yourself an inventory management software
If you are a cell phone repair store owner, getting yourself a Cell Phone Repair Shop Software is ideal for managing your inventory. It will tell you before time which items need restocking and alert you if you are running low on stocks.
Such repair shop software will do all the labor for you, and you just need to overlook the wonders it will do for you.