What is Inventory Management? Tips for Small Business!
07 Jun 2021
In the world of business management, there are a few things that are definitely more challenging than keeping proper track of your small business inventory. While you may be dawning on multiple hats throughout the start of your endeavors, there is a simple way to have stable inventory management on deck without having to waste time. We talk about the inventory management software for small business, and this article will introduce you more details on that.
Not giving your inventory the time of day to make sure it is appropriately tracked and monitored will end up eventually costing you in ways you never knew could happen—from increased labor costs, backorders, and wasted storage space when the wrong items get restocked.
If your small business margins are already tight, employing a solid inventory management system may be all the difference you need to see. With that being said, there is an established method for surmising your products and goods, keeping the proper levels, and not disappointing customers. That is called inventory management software for small businesses.
Whether you are struggling to find the right mix of products, warehouses that are too large or small, or are just looking to make the most out of your eCommerce software, inventory management is the way to go. Read on to learn more about methodology. Also, receive well-maintained advice on making things more affordable and profitable for your small business.
What is Inventory Management?
Inventory management is a software system to help you control all of your goods and products. This system will cover both raw materials and finished products to optimize the use of your inventory fully. With eCommerce platforms such as eSwap, small business owners can rest assured that the entire process is covered. This includes how you source, receive and store these goods.
The mission of inventory management for small businesses is to hold the correct amount of stock at accurate locations to meet order demands and needs. This has to occur while regulating costs to ensure a profit.
In order to meet these goals and business aims, companies now are reverting to online software to help them get a better drip on their inventory. Inventory management software for small businesses is highly crucial, especially during the initial phases of kick-off. Whether you are employing the help of developed software or simply jotting notes down in an Excel spreadsheet, robust inventory management can eventually lead to a productive and profitable business.
Why is Inventory Management Software for Small Businesses Necessary?
Inventory management software for small businesses is a scheme intended to preserve your business operations by guaranteeing your affordability to meet customer orders. Employing the use of a well-managed system will have your supply chain of command working flawlessly. This will also get your products and materials moving faster without having them stay on the shelves for too long.
One notable advantage of inventory management software for small businesses is that they help you learn the proper practices to record and reorder products and supplies. Inventory management systems help bypass stockouts. This not only cost you extra to have them immediately stocked but can also intrude the supply chain. The latter will, in turn, create obstacles for your operations.
Moreover, when you implement the correct use of inventory management, the business is more inclined to be pick up its orders accurately. This is all because the system begs for scanning barcodes as your packaging team picks and packs orders. In turn, order accuracy decreases the expenses linked to refunds, returns, and reshipments. On the other hand, you will also be able to avoid mis-shipments. They cause wasted labor and run-up costs, all due to reshelving returns. Overall, your inventory will cost you in the short term and long term. Mistakes in the stock will be the reason for unforeseen short-term expenses and negative reviews in the long run. Those will eventually harm your operations.
Tips and Tricks to Efficiently Manage Inventory
With each different company comes a different approach to inventory management software for small businesses. However, the fundamental features remain the same across a broad spectrum of operations. Here are a few features to take into account when employing a new inventory management software.
Make Sure To Have Everything in The Right Place
Having all products in their assigned places will offer a well-guided light for a more compliant inventory management plan.
Firstly, every item on your product list must have a defined place. This willl make it easier for the next person to find. Second, organizing your warehouse will also help with the concurrent inventory checks that you will have to conduct.
Conveniently Place Most Ordered Items
Applying a few strict inventory management policies may help your warehouse flow smoother and aid in other operations. One of the most efficient ways to stack your products is by order of most popularity. Having your most ordered items closer to the packing station can actually save you some time. It will also help you in processing your orders quicker. This will also help your team in counting the good as they go. This will have your warehouse members noticing low stock levels even before inspection, therefore pushing managers to reorder the product and save on supply chain time. This method is most efficient for companies working with perishable items as they do come across maint constraints.
Keep on Checking Your Orders with Inventory Management Software
Many of the online inventory management software for small businesses offers plenty of scanning options to help you stay on top of your orders. You can easily use barcode scanners or opt for SKUs, which will help you track, locate and manage inventory.
Constantly checking your orders will help protect your inventory data and numbers. Scanning the order sheet and product as it’s picked and packaged can immediately update counts to match the right product to the right order.
Make sure to scan those products as it goes to packaging. That is important to verify that the order is going out accurately and matching your inventory counts.
Once you have the multiple checking system under wraps, this will open the way for more complicated and advanced inventory processes. Those include just-in-time production with materials or products arriving based on production and order schedules.
Developing an efficient inventory management system is a never-ending process that deserves much thought and energy. The industry is always on the brink of new discoveries and opportunities, pushing your small business to grow. Encompass the versatility needed to stay on top of the game and plan accordingly with eSwap.