5 Ways to Better Organize Your Business Inventory

Karleia Steiner

September 03, 2014

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Tracking inventory is one of the toughest aspects of small business management. If you don’t understand how to organize your inventory, you should implement these five procedures. Each procedure will slash unnecessary warehouse costs.

Determine Who Will Replenish the Inventory

When your inventory reaches a certain level, someone on your team should order more inventory. If no one has this responsibility, your business will run into problems.

To minimize lost sales, focus on building up the items that move the fastest until you reach your preferred level goal. If your replenishment solution contains safety stock strategy features, you goal will be reached from a unique perspective. It begins with your investment and service strategy. Then, it creates a comprehensive and balanced approach.

Organize Stock into Several Categories

Most small business owners place their inventory items in one category; however, organization is much easier when everything is placed in three different categories. There should be a category called excess, safety, and replenishment. By using this approach, you can make smarter choices about when new inventory should be ordered when a category gets low. Do not track your inventory on paper; instead, use inventory management software that operates with your company.

Monitor The Safety Stock

To avoid inventory problems, recalculate your safety stock regularly. Your customers will have issues if you lose half of your safety stock. Your business should never have a lot of product on hand that cannot be used.

Excess Stock Should Be Visible

If you make your excess stock visible, the stock will never sit in the warehouse for years without any sells. Place your stock out front because it will be more visible to your sales staff.

Determine Root Causes

You must determine why your inventory does what it does. For example, if one item continues to sell well every month, you must determine the reasons why. This technique will help you select better items for your business in the future, and it also eliminates purchases that are not necessary.

Additional Advice - How To Improve Inventory Management Without Software

Your operation should be inspected often, and you must keep your warehouse organized. In addition, give your manager a daily checklist; the upkeep of the warehouse is the manager’s responsibility.

Place your high-volume items near the shipping area because they must be easily accessible. Proper placement will also eliminate unnecessary work for your employees.

If you need additional storage space, contact Quantum Storage.