When it comes to a ‘perfect inventory management’ for wholesalers and distributors, it can be simply defined as a process implemented to maximize a company’s use of inventory. The goal of inventory optimization is to generate maximum revenue and spend least on inventory management processes without compromising on customer satisfaction levels or business workflow.
There are a number of ways to ensure that your inventory management system is well-optimized for maximizing efficiency and profitability. Below are five smart ways to optimize your inventory-
- Ensure Real-time Data Accessibility
As a business owner, you know how important it is to track the accurate overview of inventory data in real-time at all stages of the supply chain. Therefore, you should invest in an inventory management application, which stores all its data on a centralized cloud-based server. With inventory data and stock information in a central database, your sales and marketing team can easily collaborate and get aligned on any important changes to stock and inventory.
2: Implement First-In First-Out (FIFO)
First-In First-Out or FIFO is a very important principle of inventory management, which you should know about. It basically means that your oldest stock (first-in) gets sold first (first-out), not your newest stock, which came later. This is especially important for businesses that deal in perishable products. You need to have an organized warehouse, which should be synced to an efficient inventory management software, so that your business can nurture the benefits of FIFO implementation.
3: Accurate Demand Forecasting
Any inventory management process is not considered effective if it fails to forecast the future demands. A well optimized inventory management comes down to a situation, where you can accurately predict the future demand. However, it must be noted that this is incredibly hard to do. There are countless variables involved in the process and you’ll never know for sure exactly what’s coming. An advanced inventory management software can help you here.
4: Stock Segmentation
This is very important if your business deals in more than in one product or category. Most of the times, a single product has multiple variants, which makes it difficult for the business owners to maintain stock/inventory for every product. An inventory database with multiple product categories and stock segmentation can eliminate the challenges of inventory management for multiple products and categories, and optimize your inventory with an ease.
5: Inventory Management On-the-go
Lastly, in the era of smartphones, tablets and iPads, you cannot rely upon a computer system or even a laptop to track your inventory data and stocks. Even when you are travelling or not present in your warehouse, you want your businesses’ real-time stock reports, sales & purchase reports, dispatch status and other crucial data to be accessed easily. Invest in an inventory management software, which can be accessed as an inventory management application on your smartphone, tablet or iPad on-the-go. It is one of the most important aspects to consider if you want to optimize your inventory to its best level.
Find out more benefits of cloud-based inventory management software.
Contact us for a detailed DEMO of the Inventory Management Software.