7 Mistakes You Are Making With Your Inventory And How To Fix Them
As you maintain your business, you have to do what you can to properly track and manage your inventory. Since you will sell a variety of products to people, you need to know how much you have and when to replace them. Plenty of people make mistakes when it comes to inventory management, so we wanted to point out seven of them and give you some advice.
Keep the Inventory Stocked
Above all else, you need to do your best to keep your inventory stocked. If you don’t have items you can sell to your customers, you will lose money and waste their time. On top of that, some customers may become annoyed if you don’t have specific items in stock, which could affect their perception of your business.
Make sure you purchase inventory whenever it starts to run low. You also need to understand how long your inventory takes to come in, so you can time your purchases with their arrival. That way, you can minimize on downtime for your inventory, lowering any risks of you running out of supplies before the new ones arrive.
Get the Right Amount of Inventory
On the other hand, the opposite can happen when it comes to your inventory, so you could end up ordering too much of it. This means you need to order a good amount of inventory without ordering more than you need, leading to waste. However, you may find it difficult to figure out that proper balance when it comes to inventory.
However, you can look into inventory optimization software to help you maintain this balance. Inventory optimization software will help you purchase the right amount by identifying how often you sell supplies along with how often customers buy them. That way, you can use it to order the right amount of supplies.
Consider the Holidays
While your inventory and how much you purchase matters, you also need to think about the holiday season. For example, if you sell candy throughout the year, you will need to buy more of it during Easter and Halloween. Keep track of the holidays and see how they impact your sales during those months to figure out how much you should prepare.
Going off the previous example, you will need to buy more candy during those months, but you can cut down again once you get through those holidays. Make sure you consider any holidays people commonly celebrate in your area to plan your inventory accordingly. Otherwise, you may run out during those busy seasons.
Get the Right Employees for Inventory
While you will do some inventory tracking of your own, you will also need to hire the right employees for the job. Otherwise, you run the risk of them doing it incorrectly, causing you to get more or less inventory than you need, which can impact your sales and cause you to lose business.
Make sure you create prerequisites for inventory management. You need to spend some time training those employees, but you will have an easier time if you hire ones with previous experience. Otherwise, you run the risk of having your inventory mismanaged, so you must pick effective workers for the position or properly train them.
Track Inventory Sales
As you have workers manage your inventory, they will need to track the sales. Luckily, many businesses can get programs that will automatically track when your business sells various products, allowing you to see the data. From there, you can make important business decisions based on the data you have available.
When people make purchases, you can use programs that will record and save that information when they ring it into the register. That way, you won’t end up losing track of your sales since the system will track the information for you. Otherwise, you run the risk of missing some of your sales, which can impact how you look at data when you need to use it.
Focus on Products
This may seem strange, but having too many products can lead to problems for your inventory. This happens when you have too much product variation in your store. For example, if you notice people only buy a few shoes from a brand, you shouldn’t get multiple variations of those shoes.
Of course, you do need variation in your store, but you shouldn’t go overboard with it. On top of that, you should track those products and see how the variations perform. From there, you can determine which ones are the best to keep in your store while getting rid of the ones that people don’t buy that often.
Look Into Trends
Once you have all this information and track your inventory, you need to start looking into the trends. For example, you may notice some of your products perform better during specific months compared to others. That way, you can purchase more inventory for those products during the times when the trends show they will do the best.
While trends don’t give you a perfect idea of how your products will sell, it does help you figure out what you should get. Otherwise, you have to see when your products run out or guess when you should make purchases. Either way, trends will guide you during the process, helping you figure out when you should buy products.
Since your business needs to track its inventory, you need to avoid mistakes to maximize on profits. After all, if you make mistakes with your inventory, you can end up losing money, causing problems for your business. Make sure to remember these seven mistakes, so your business can avoid them in the future.