HOW TO MANAGE INVENTORY
March 30th 2015 at 4:56pm Published by firstdownadmin
Inventory is an accounting term that refers to goods that are in various stages of being made ready for sale, including: Finished goods (that are available to be sold) Work-in-progress (meaning in the process of being made). Inventory control is important to maintaining the right balance of stock in your warehouses. … Too much inventory can trigger profit losses––whether a product expires, gets damaged, or goes out of season. Key to proper inventory control is a deeper understanding of customer demand for your products.
An inventory strategy is a day-to-day methodology to follow for ordering, maintaining and processing items in your warehouse. For a small operation, inventory management is a fairly straightforward job to handle, but as your volume increases, you need a more established plan.
How do you maintain your inventory level?
- Check all stocks inwards.
- Store your stocks wisely.
- Create clear labels for each product.
- Keep track of expiry dates.
- Don’t compound problems.
- Set threshold stock levels.
- Manage returns effectively.
- Always keep an eye on stocks.