10 Essential Tips for Effective Inventory Management
Out of stock and oversupply not only cost you money and credibility but also pay the price by correcting these mistakes. Read now 10 essential tips for effective inventory management.
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Rose Helen
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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.
10 Essential Tips for Effective 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.
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
And if you have any questions about our article or Magento extension and Magento themes, leave comments in the section below, we are willing to answer all of your questions ASAP.
If you are looking for Magento Custom Services, share your project with our support team. We will try our best to please you.
Thank you and best regards.
Rose Helen
Shop Owner
Rose Helen is a highly accomplished Ecommerce Project Consultant with a strong background in managing and guiding successful e-commerce projects. With her exceptional expertise and strategic mindset, she helps businesses achieve their goals in the digital marketplace.
With years of experience, Rose Helen possesses an in-depth understanding of e-commerce platforms, technologies, and best practices. She works closely with clients to analyze their needs, develop tailored strategies, and execute effective project plans that drive growth and success.
As an Ecommerce Project Consultant, Rose Helen excels at overseeing project lifecycles, from inception to completion. She ensures projects are delivered on time, within budget, and with the highest level of quality. Her exceptional project management skills enable her to effectively communicate with stakeholders, manage resources, and mitigate risks throughout the project journey.
Rose Helen is a strategic thinker who leverages her extensive knowledge to identify opportunities for improvement and innovation. She provides valuable insights and recommendations to optimize e-commerce processes, enhance user experiences, and increase online sales.
With her strong communication and collaboration skills, Rose Helen builds strong relationships with clients and key stakeholders. She fosters a collaborative environment, working closely with cross-functional teams to ensure seamless project execution and alignment with business objectives.
Beyond her technical expertise, Rose Helen is dedicated to delivering exceptional client service. She goes above and beyond to understand her clients' unique requirements and provide them with personalized solutions that drive tangible results. Her commitment to client success is evident in her approach and the long-term relationships she builds.
Rose Helen's passion for e-commerce, coupled with her extensive experience and project management skills, makes her a valuable asset for organizations looking to thrive in the digital landscape. With her guidance, businesses can navigate the complexities of e-commerce projects and achieve their objectives with confidence and success.
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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
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.
Main features about this Advance Inventory Management Extension
Other features:
Backend
System configuration
Front-end
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
And if you have any questions about our article or Magento extension and Magento themes, leave comments in the section below, we are willing to answer all of your questions ASAP.
If you are looking for Magento Custom Services, share your project with our support team. We will try our best to please you.
Thank you and best regards.
Rose Helen
With years of experience, Rose Helen possesses an in-depth understanding of e-commerce platforms, technologies, and best practices. She works closely with clients to analyze their needs, develop tailored strategies, and execute effective project plans that drive growth and success.
As an Ecommerce Project Consultant, Rose Helen excels at overseeing project lifecycles, from inception to completion. She ensures projects are delivered on time, within budget, and with the highest level of quality. Her exceptional project management skills enable her to effectively communicate with stakeholders, manage resources, and mitigate risks throughout the project journey.
Rose Helen is a strategic thinker who leverages her extensive knowledge to identify opportunities for improvement and innovation. She provides valuable insights and recommendations to optimize e-commerce processes, enhance user experiences, and increase online sales.
With her strong communication and collaboration skills, Rose Helen builds strong relationships with clients and key stakeholders. She fosters a collaborative environment, working closely with cross-functional teams to ensure seamless project execution and alignment with business objectives.
Beyond her technical expertise, Rose Helen is dedicated to delivering exceptional client service. She goes above and beyond to understand her clients' unique requirements and provide them with personalized solutions that drive tangible results. Her commitment to client success is evident in her approach and the long-term relationships she builds.
Rose Helen's passion for e-commerce, coupled with her extensive experience and project management skills, makes her a valuable asset for organizations looking to thrive in the digital landscape. With her guidance, businesses can navigate the complexities of e-commerce projects and achieve their objectives with confidence and success.