43% of retailers ranked inventory management as their daily challenge. In fact, this can be a problem if the business owner doesn't use inventory management software. Inventory management is a long-term foundation for survival. Without it, you might make mistakes like sending the wrong stock, running out of stock, stockpiling too much, etc.

Out of stock and oversupply occurs when a company uses manual methods to manage its inventory status. These mistakes not only cost you money and credibility but also pay the price by correcting these mistakes. So how to manage your inventory well. Read now 10 essential tips for effective inventory management. 

If you are looking for a list of the best Magento Inventory Management Extensions, check out Top 7 Inventory Management Extension for Magento

10 Essential Tips for Effective Inventory Management

inventory management

1. Track all product information

Make sure to store correct product information for the items in your inventory. This information includes the SKU, barcode data, supplier, origin and batch number. In addition, you also need to enter your product information on the stock inventory management software to know the exact amount of products available for each store as well as the whole business.

2. Audit your inventory

Some businesses do an inventory check once a year. However, many businesses also check inventory monthly, weekly or even daily. No matter how often you do it, make sure it matches what you think you have. A good inventory of goods helps to avoid unnecessary commodity losses. In addition, the larger the quantity of goods in stock, the greater the cost of storage. Therefore, it is necessary to soon detect products with excess inventories and to take measures to promptly release and circulate inventories. In addition, regular inventory control helps to avoid an out-of-stock situation at your store and takes measures to move goods in time.

3. Analyze supplier performance

An unreliable supplier can cause problems with your inventory. If you have a supplier who is late to deliveries or often cuts orders short, it's time to take action. Discuss the issues with your provider and find out what the problem is. Be prepared to switch partners or deal with uncertain inventories and potentially out of stock.

4. Utilize the 80/20 inventory rule

As a general rule, the 80/20 rule is often used in departmental inventory management to determine that 20% of inventory makes 80% of profits. You should have a deep understanding of the lifecycle of these products, including their sales within a week or month, and keep a close watch on them. These are the items that will help you make the most money so don't neglect to control them.

5. Be consistent in the way you receive your goods

Usually, to make sure inventory is handled, you need to have a standard procedure that everyone needs to follow, regardless of employee training. Because, the slight difference in how the new stock is stocked can be a headache at the end of the month or the year. You wonder why the quantity does not match the order, the order is at a loss. Make sure all consignees follow the same way, and that all boxes are verified, received and packed together, counted correctly, and checked for accuracy.

6. Track sales

Sales tracking is not simply statistics about how many products you sell per day. You should understand which products you have sold every day, which products are the most sold, as well as keep an update on your total inventory. Not only understanding total sales but also having a good picture of how your items are sold is important for having good control of your inventory.

7. Order restocks yourself

Some vendors suggest rearranging inventory for you. On the surface, this sounds like a good thing - you save staff and time by letting others manage the process for at least a few of your items. But remember that your providers don't have the same priorities as you. They are looking to move their items, while you're looking to stock up on the items that are most beneficial to your business. Take the time to check inventory and order restocks for all of your items.

8. Invest in inventory management tool

If you're a small business, managing your inventory with spreadsheets and notebooks can be done. However, as your business grows. You will have to spend more time managing inventory. Having an advanced inventory management tool makes this job even easier. When choosing, make sure it also offers the solutions you need most and is easy to use.

If you own an e-commerce store that uses the Magento platform and are looking for Magento inventory management, you can refer to the product Advanced Inventory Extension For Magento.

This is one of the most powerful extensions which is not only helps you manage multiple stocks of each store on your website but also allow you manage location, statistics and evaluation information of products of each store.

An extremely interesting features about this extension is it’s integrated with Store Locator Extension that allow customer find their nearest store easily.

inventory management

Main features about this Advance Inventory Management Extension

  • Integrated with locator extension
  • Store list in product detail page
  • Locator store
  • Store locator map
  • A powerful admin panel for configuring advanced inventory
  • Export your stores to CSV file
  • Manage stock
  • Manage stock of store:
  • Assign order
  • Manage report store system
  • Manage report stock of store

Other features:

Backend

  • Managed stores information: store name, description, address, working time, store locator on Google Map
  • Add, edit, delete information of stores
  • Add, edit stocks quantity of each store when creating or editing a product
  • Add, edit stocks quantity per product on grid
  • Manually assign orders into store, used drop-down to choose store
  • Polls statistics to check sales overview of all stores and per store

System configuration

  • Activate: On/ Off extension
  • Customize the display of stores list
  • Configure stores display on product page: unavailable/ available all stores list, displayed stores via customer’s location
  • Customize displaying information of stores

Front-end

  • Show stocks quantity of each store on product page
  • Warning message for out of stock products
  • Built with Magento Store Locator that helps customer to define nearest shops fast
  • Displaying many stores on Google Map

Do not skip to try many powerful features about this extension by exploring the DEMO.

Conclusion

Hopefully, this article of 10 Essential Tips for Effective Inventory Management has brought to you much essential information. Are you wondering What is must-have features for Inventory management? Let's access 6 Must Have Features For Advanced Inventory Management Extension

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