Inventory management is an important thing that you must do well if you want to develop your store. Without it, you will lose both your chances and your money. All entrepreneurs have their own way to manage their stock to match their customers’ needs.
Good inventory management not only prevents you from ordering slow-selling products and avoiding damage with perishable items, it also allows you to keep up with the trends of both the market and customer individually. You can reduce warehouse costs, even reinvest in quick sale or new stock if you manage your inventory well.
Miscalculation can lead to problems such as cash flow, improper investment. Excessive sales, unable to deliver on the required date are also a disaster. Supplier needs time to produce products or deliver goods to your warehouse.
Set par levels:
With par levels, you will need to set the minimum amount of product. When you reach that, it will trigger an automatic order. You should do research and use data to set that level. Please remember that in pick seasons such as Christmas, New Year Eve or sale time, your par level should be increased to meet the customer’s demand.
Prioritise your products:
By accurately classifying your company’s assets, you can completely control of our warehouse. Try to figure out a system that suits your company, if it is a product type, value, best-selling product, or any other sorting device. You will be able to find information quickly, which allows quick inspection and help you closely monitor trends in your own store.
Use old stock first:
For perishable goods, packaging like normal boxes can make products quickly damaged or deteriorated over time. Good management and careful training for any warehouse staff is an essential issue.
Make friends with your suppliers:
For e-commerce, establishing relationships is an extremely important aspect. However, you should not forget the relationship between the supplier and the warehouse staff. If you have a good relationship with suppliers, you will easily negotiate with them on lower minimum order quantities, and during peak times when stock is being sold quickly, suppliers have the ability to give opportunities to partners they know and trust. Communication is an important issue, if you organize an event let suppliers know it so they can meet your needs.
Count your stock:
No one likes the audit work, however, it is an essential element to operate a store successfully. There are companies that only audit once a year. But if the stock is missing, it is possible to lock the error determination with the annual stock check. It is better if you take a monthly inventory check with all products in your warehouse.
Know your market:
By accurately predicting the peaks and declines in your market, you can ensure there are stocks when your products take off. Easy as pie. If the market is predicted to be an easy billionaire will be popular and the currency will become redundant. But you can give an educated guess about when products will become popular, for example, seasonally worn. Look at last year’s sales figures if they are available and combined with this year’s expected growth.
Your inventory will be managed by Shopify, not just e-commerce stores but also in traditional stores. This system helps you categorize products by type, season, quantity sold and more. Your store will grow even more if you can manage your inventory well.