10 Inventory Management Tips for Small Business


inventory management tips for small business

For any business, inventory management is a highly important aspect for growth. If it’s a small business, inventory management must be given much more importance as it can impact the sales heavily. With a properly maintained inventory management system in place, you can easily have the right type of products in appropriate quantities, available at the right time for sales. Proper inventory management not only helps you minimize the costs, but it can also assist you in maximizing sales of your business. Since reducing the costs and growing sales are the primary factors that contribute to the success of a business, inventory management must be implemented properly.

Here are the 10 best Inventory Management Tips for Small Business

In order to take care of your business’ inventory management, you must educate yourself with proper knowledge and information. Continue reading to find out the top 10 inventory management tips for small businesses:

 

Be accurate with your forecasting

Business forecasting is very important for planning and executing your business strategy and eventually grow your business. Build your forecast on real-world indicators such as historical sales, market trends, predicted growth and marketing efforts.

 

Take care of low-turn goods

If you have amassed stock of certain product that hasn’t been sold at all in the last few months, it’s better to stop stocking it up and focus on getting rid of the stocked up goods. Try to run a promo event for such
products and get rid of them.

 

Check your stock regularly

The main part of proper inventory management is none other than stock auditing. You must definitely focus on counting your stock and see if they match the count that you’re expecting through your inventory management
tool.

 

Track your stock

Make sure that you track your stock goods time to time, so that you can update your inventory accordingly. While doing so, track your expensive products with high priority.

 

Manage equipment repair efficiently

Important machinery of your business may not always be in a perfect condition. Sometimes, their sudden malfunction can impact your business negatively. In order to avoid any such hassles, better check your equipment regularly to find out the working condition and its life cycle.

 

Focus on quality control

Each and every business must focus on the quality control aspect with high regards. Quality control involves testing the condition of your stock and investigating any types of damages and proper product labeling.

 

Hire a professional

If you feel that inventory management is too much of work to be handled, better try to hire a stock controller who can help you by leaps and bounds. A stock controller primarily processes all the purchase orders, receives deliverables and ensure that both are in-sync.

 

Categorize your inventory

Organizing your inventory goods into major categories can really help you in your business inventory management. You can simply do it by categorizing your inventory items into main types such as A, B, and C categories. A for big-ticket items, C for least expensive ones and B for the items in between.

 

Try Drop Shipping

Now, you don’t have to possess any inventory to sell something, thanks to Drop shipping. Through this business model, you can easily open an online store and sell products without holding any inventory. Wholesale2b, Doba, Inventory Source are some of the popular dropshipping services available.

 

Implement FIFO

First In and First Out is one of the best inventory management tips one could get. You can do this by simply ensuring that items are being sold in the chronological order, same as they were bought.

 

Conclusion

Inventory management can simply make it or break it for your business, when it comes to growth and profitability. In order to stay on the right path, follow the above-mentioned inventory management tips and conduct your business efficiently.

About Sreeram Sreenivasan

Sreeram Sreenivasan is the Founder of Ubiq, a business dashboard & reporting platform for small & medium businesses. Ubiq makes it easy to build business dashboards & reports for your business. Try it for free today!