Good inventory management is important for every business, and that’s something you’ve already heard hundreds of times. But what exactly does a good inventory system consists of, and how do you manage it in the most efficient way, without going into too many details? Well, take a look at this simple guide that aims to present inventory management in a way that will be understandable even to beginners in business.
Well Organized Location Names
Every inventory system starts with location names. Where is a particular thing stored? How far away is it? These are simple questions, but when you’re in a rush, knowing where exactly products are stored is valuable.
Location Labels
These are applied to storage locations throughout the location of the business. When thinking of labeling the locations, one must apply a certain naming logic, so that it’s intuitive for all employees.
Item Descriptions & Numbers
Each item in your inventory must have a clear description, and it needs to be numbered. The latter is a more convenient way of identifying items in automated inventory control app, as it uses 5-6 digits for each product instead of descriptions that can be several hundred characters long.
Units of measure
Whatever the product is that you’re selling, you need to know how many or how much of that product is in your inventory. Things like “ea”, “kg”, “lbs” and others will immediately tell you how much product you have in your inventory.
Good Starting Count
Knowing what products you have, and what the amount is will be a lot easier when loading data into a new inventory software program. From then, it will be easier to track any changes.
Inventory Management Software
Every business owner knows that tracking inventory is a lot easier and more convenient if you use inventory management software, such as the inventory control mobile app DataQlick. Also, using a sales forecasting app is a great way to anticipate any changes in the inventory.
Policies
Finally, we have an important step where the employees must know the correct procedure in the inventory control and management. They should know what to do when an item is received, when it’s taken out of stock and other processes during a regular work day. When everyone is familiar with inventory management, it ensures smooth operating of a business.
