As your business continues to expand you might have noticed that there is a lot of work required to continuously improve inventory management. Effectively managing real-time inventory is a critical component of an efficient fulfillment process.
When you can master inventory management your inventory levels will be accurate, providing on-demand order solutions that are hassle-free and worry-free. Here are 3 ways you can improve inventory management for measurable results.
- Analyze your past order history to determine an optimal reorder point. Use statistical formulas that provide accuracy of sales forecasts and adhere to service-level data (for example, SKU). You will never have to question when it’s time to reorder again and you’ll always have the time needed before going out of stock.
- Auto-schedule inventory reorders. The modern inventory management systems have the capability of sending reorder notifications as well as place orders with external vendors or internal manufactures. By taking advantage of this feature you will save valuable time and maintain sufficient inventory at all times.
- Take advantage of cycle count programs. “Why?” You might ask. Cycle counts are built for lean inventory practices (i.e., periodic counting of just some of your inventory. These practices take inventory management to the next level. You not only have the visibility into fast moving inventory, but highlights with slow-moving inventory as well. This allows retailers to maximize sales opportunities on current inventory.
Regardless of if you have auto-scheduling or not, you will want to monitor stock level reports. Improving inventory management should be a priority for any retailer. Follow these three strategies for effective inventory control for quick scalability.