eTail 101: The Importance of Efficient Inventory Control & Management
Keeping Tabs on Your Inventory
As an online business owner, you should always be thinking about inventory control and management. Inventory control is the process of making sure you have the right amount of stock to keep up with demand. You have to supervise the flow of products so you know which products are selling better than others.
Knowing how to do this is crucial if you want your business to succeed. Continue reading and learn why tracking and managing your inventory is important.
Why You Need to Control & Manage Your Inventory
Controlling your inventory is important is because it keeps you from understocking. There is nothing more frustrating than losing a sale because you did not have enough stock to fulfill an order. Inventory control also keeps you from cluttering up your warehouses with products that no one is buying.
Evaluating the flow of your products will prevent these issues from occurring. Through inventory management, you can learn which products are selling better than others. This will show you which items should take priority. You will also learn which products are not as popular, so you know what does not need to be restocked as often.
By making smarter decisions, you can save a lot of money in the long run.
Tips for Inventory Management & Control
Having trouble controlling and managing your inventory? Use these tips to get back on track.
Use Inventory Management Software
Using an online inventory management system is an efficient way to keep tabs on your stock. The more your company grows, the harder it gets to manage your inventory manually. By investing in inventory management software, you will get an easier way to track your products.
Inventory management programs allow you to keep tabs on your inventory in real time. They also provide analytics, so you can see how your products are performing. The software does the work for you, giving you time to focus on other aspects of your business.
Need some software to use? When you sign up for Logicblock’s 7cart system, high-end inventory management software will be included.
Develop a Product Forecast
If you have been in business for a long time, you should try to develop a product forecast. To keep yourself from overstocking, take some time and predict when you think certain products are going to be the most popular. Pull up your old sales data and spend some time reviewing it.
By reviewing your sales data, you can find sales patterns that will help you develop an effective business plan. With a plan in place, you will know which items you should stock during specific points of the year. Having a forecast is great for all companies, especially ones that sell seasonal items.
Sort Using the ABC Method
Another common tactic for inventory control is the ABC method, or the selective method. Some products need more focus than others, and you need to figure out which items should
be prioritized. With the ABC plan, you can split products up into three categories based on financial value.
Category A products are high value items that need your full attention. Products in Category B have moderate financial value that deserve a fair amount of control. Last, there are Category C products, which have low value and do not need your full attention.
This type of organization is helpful if you have a diverse catalog of items. Products in Category A need frequent restocks, since they are in high demand. It would be bad for business if these items went out of stock.
Set Par Levels
Setting par levels is another good way to manage your inventory more efficiently. A par level is the minimum quantity you must have for a product at any given time. Par levels can help you determine when you should resupply items in your inventory. When a product dips below the set amount, you have to order more so you do not run out.
Since certain products will be in higher demand, your par levels will be different for each product. Set your par levels based on an item’s demand and how long it takes to restock it. Market conditions will change, so you may need to make adjustments to these levels as time goes on.
Logicblock’s 7cart system offers more than just inventory management. Interested in learning more?