As a small business owner, managing your inventory is one of the most important tasks you have. Your inventory is the lifeblood of your company and assuming you only sell inventory as opposed to services, whether or not you can effectively manage your inventory will determine if you have real success or not.
Managing inventory might sound as simple as supplying products that your customers demand, but it actually entails a bit more than that. In case you’re a small business owner and you want to manage your inventory in a way that helps maximize the profit of your business, let’s take a look at a few wise tips you can use to do so.
- Last Mile Delivery
Utilizing a last mile delivery service is probably the number one tip you can use to help effectively manage inventory. Last mile delivery services have a number of advantages over companies who try to manage their deliveries without them.
Firstly, last mile delivery services drastically cut down on the costs for overall delivery. Oftentimes, the last leg of your delivery where products are going from a local retailer directly to your job site is the most costly.
This is because many deliveries are split up into multiple batches coming from a variety of different areas. This not only leads to the increased possibility for error on the part of the delivery company, but it also costs more than having all your materials transferred at the same time, in one load.
Not only will last mile delivery services keep your deliveries bunched together, they can use their professional capabilities to avoid traffic, delays, and other last mile problems that commonly pop up.
- Prioritize Your Popular Items
One of the most important things you can do as an inventory manager is to prioritize your best-selling items. You want to have your best-selling items in stock at all times.
More expensive items that don’t sell quite as well should be placed lower down on your priority list. The goal is not to have all items stocked at all times, but to have each item stocked as often as possible according to customer demand.
We recommend an ABC structure. A-labeled items are in high demand and should be stocked as often as possible without ever running out. B-labeled items are slightly less in demand but should still be stocker on the regular.
C-labeled items are less popular and do not need to be constantly stocked to the brim. Mastering this strategy will allow you to cut costs on unnecessary inventory and increase the value of your ecommerce business as well.
- Track your Data
Data is everything in business. Make sure you’re keeping track of what gets bought, and how often it sells. Tracking your inventory to see exactly how well each item is selling is crucial to harvesting more data about what your customers do and don’t like. Keep track of barcode data, SKU’s, lot numbers, countries of origin, and suppliers as well.
- Perform a Regular Audit
Regularly auditing your inventory will allow you to keep tabs on it and make sure no discrepancies are present. Perform a weekly, monthly, quarterly, or even daily audit on your inventory to make sure your numbers are matching up and no product is going missing.
- Analyze Your Sales
Keeping track of what you sell and how much of it you sell is only the bare minimum. If you really want to effectively track your inventory, analyze your sales to see if things like seasonal change, trends, and or add-on purchases have a big effect on your sales.
Use these Tips to Manage Your Inventory Like a Pro
Managing your inventory is vital to effectively operating a business. Every penny you make will come from selling what’s in your inventory, so making sure yours is well-stocked and looked after is crucial if you want to turn a profit. Use the tips listed here to avoid inventory issues and maximize the potential of your business in a way that allows you to reap the most profit possible.