Proper inventory management can be the difference between a smooth operating supply chain and a disastrous mess of miscalculations.
Most companies have some form of inventory management but still feel that their current systems lack critical features. They may still find themselves running into issues such as shrinkage, overstock, and loss of profits.
If that sounds like your company or you are starting a company soon, you need to know about these inventory management techniques!
Know Your Supply Chain
Your supply chain is the system through which your inventory moves to get it from production to the consumer. It’s what keeps your business in motion. Without it, you would never sell any product. It’s the beginning and end of inventory management.
If you don’t have a firm understanding of each part of your supply chain, successfully managing inventory is impossible.
You need to know how each part of the chain works, from production to warehousing, transport, and delivery. Each part intricately connects and will give you the information you need to manage your inventory.
Set a Standard
When we say “set a standard,” we aren’t simply talking about your standards for managing inventory. We are referring to the minimum number of a product that you must have in your inventory at any given time.
By setting a bare minimum amount, it can give you an estimation of when you need to restock a product and how quickly said product is moving.
You can base this minimum on the data you collect from your sales. It should fit the most recent rate of movement. The minimum you set should ensure that you never run out because the new stock should be arriving just in time.
Update in Real-Time
Keeping track of your inventory is the primary goal of inventory management. But there is no possible way to do that successfully unless your numbers are accurate.
That is why you need an inventory tracking system that updates in real-time. The right system is your key to achieving great inventory management.
The system you use should engage with several steps within the supply chain. It should be able to track everything that enters, leaves, and returns to your stock. If you sell your products on multiple channels, it should be able to keep an accurate number no matter where the item is purchased from.
A system that doesn’t account for multiple selling channels can lead to inventory mishaps with detrimental consequences.
Outsource to a 3PL
Enlisting the help of industry-leading professionals when you’re unsure how to improve your business is always advisable. That’s why you may want to consider outsourcing to a 3PL.
The term 3PL stands for third-party logistics.
These companies provide services that can help you successfully warehouse and distribute your products, and subsequently improve your inventory management. They also have access to systems and equipment that may be too costly for you to instill in-house.
Outsourcing to a 3PL is a quick way to remedy years of poor inventory control!
Overflo Is The 3PL For You!
Are you located in the Mid-Atlantic Area? If so, you need to contact Overflo today!
We are a 3PL with the tools you need for better inventory management.
Contact us today for a free rate quote!