Five Tips to Improve Your Inventory
According to IHL group, a global research firm that specializes in software and technologies in hospitality and retail industry, both retail and hospitality companies lose as much as 1.75 trillion dollars. These figures are due to overstocking and out of stock products. Below we will give you five Tips for Managing Inventory in Metrc.
Maintain a Well-Organized Warehouse
Maintaining a well-organized warehouse can help you solve a leak that will significantly improve your finances. It is noteworthy too that an organized warehouse will enhance safety while reducing injuries involved by poorly kept products. You will also want to have your fastest moving products near the dock. Additionally, if your company is involved in shipping products, accessing them will be easy, and it will save you time.
Regular Inventory Check
Impulse checking of all your inventories will help you make appropriate decisions. It is paramount though to always categorize your inventory into three levels – excess/ depleted stock, safety and replenished stock. This will help you identify the minimum stock needed so that you can provide an insurance policy against supply related problems. Also, one thing you would want to avoid is a backlog of excess or obsolete products; categorizing your products and checking them frequently will help you avoid this problem.
If you wish to improve your inventory and possibly increase your finances, then you need to avoid the thumb rule. The thumb rule is where you suggest 15 days to have your products stocked safely. The problem with using this rule is that it only accounts for products which are uncertain with regards to deliveries. Therefore, you need a statistical software where a formula is created based on the product’s history of deliveries.
Learn to Differentiate Your Stock Keeping Unit
Avoid using the same formula for all your products. This is because not every product has the same demand as another product. An articulate manager would want to have a fast-moving products refill at a quicker rate than the slow-moving products. This will help you amplify your sales and profits. Modern Materials Handling, argues that profit should be your priority; so how do you maximize it? The idea is to reduce the resources being used on less profitable products.
Your workforce should perform all tasks as a perfect engine. Your workforce includes your employees and your suppliers. Your employees should have extensive knowledge of what software you are using for stock keeping. Lastly, keep a close eye on your suppliers. Not only should you pay attention to their schedule for deliveries also, having a look at their fill rate is important. For instance, if you ordered 500 books and only 450 showed up; that is a problem.
Solving issues that arise in stock keeping can help you increase your finances. The primary ways that companies lose money is by having a poor workforce and using outdated formula. Additionally, managing your warehouse poorly and failing to differentiate your products concerning demand and supply will hurt your profits.