Struggling to effectively manage your inventory?
You’re not alone!
Millions of business owners worldwide struggle with inventory management. The change dynamics of modern eCommerce further add to the complexity by introducing new variables. To effectively deal with the challenge, companies need to have a well-defined digital strategy that lets them focus on scalability.
Digital tools are a great way to do that.
eCommerce tools like Clover eCommerce can help companies optimize their operations and improve inventory management. Aside from these management tools, there are a ton of other strategies that can simplify the process and allow you to seamlessly manage everything.
In this article, we explore the dynamics of an effective inventory management strategy and explore some ways companies can improve their inventory management.
Creating, understanding, documenting, and organizing your inventory data is the first step toward effective inventory management. Data management and precise data analysis should be a top priority for your business in today’s data-driven landscape. A data-driven approach facilitates the identification of slow-moving products, fast-selling products, damaged products, and missing or stolen goods.
This is where Point of sale systems like Clover eCommerce come in. These systems contain inventory management modules that allow your business to track data in real-time. The inventory management systems provide a much better data insight compared to conventional alternatives like paper-based records. Not to mention that searching through stacks of paperwork for the information required will take a long time.
When you’re managing inventory, it is a good idea to establish a consistent inventory management paradigm that you’ll follow throughout your operating process. Whether that is the First-In-First-Out (FIFO) rule or any other management dynamic, the central rule of administration is to have an effective organizational strategy in place.
FIFO management can be effective for your business because it allows you to sort out your inventory through a well-established process. This is because older products are more likely to go out of date than fresh stock. Perishable products will not be deemed fit for selling if expired or spoilt. Businesses can automate this process by having an inventory management software like Clover that provides the features of inventory management and basic reporting.
While organizing the inventory, it’s also best to identify items of stock that haven’t sold at all in the past year. Those items should not be stocked any further, and at this point, businesses can even come up with strategies to rid themselves of the low-turn stock, such as introducing promotions or deals. Low-turn stock items also need to be further evaluated in the broader context of business strategy to ensure that they’re not damaging to your business.
Sometimes unreliable suppliers can cause entire inventory management systems or methods to go out of order. You need to be prepared to take action when the time is right and change suppliers immediately if such issues persist. If the supplier is still not providing deliveries on time, even after constant reminders or requests, it is time to switch to another one. Switching supply partners can save you from the risk of uncertain stock levels or running out of inventory completely.
Whether you want to conduct monthly, weekly, or daily checks of inventory, that is up to you. However, it’s important to perform regular counts of supplies physically to ensure it is at the same level as the demand for an item. Some mobile payment processing companies offer an automatic check on the inventory so that businesses don’t have to waste time counting the stock manually. Regular audits also help you comply with regulatory requirements and ensure that you’re always in control of your stock status.
This is the most important step that can simplify the other steps outlined in the article. Shift to an inventory management software or adopt a mobile payment processing solution that features inventory management within the app or software. It is an easier solution for managing all inventory-related requirements with integrated cloud storage and audits. A quality inventory system, like Clover POS, keeps track of sales, customer payments, and inventory levels. Integrated an effective software develops a functional framework that keeps cross-functional teams, such as the planning, sourcing, operations, and warehousing teams, on track.
Inventory management is a critical factor in any company’s long-term viability, profitability, and customer satisfaction. Inventory management acts as a buffer that bridges the gap between supply and demand. Inventory management success will lower per-unit storage rates, transportation expenses, and spoiling costs. On the contrary, inefficient inventory management techniques can decrease your profits by impacting productivity.
Relying on conventional inventory management is no longer effective in today’s era. You need to explore a solution that considers your dynamic requirements and provides you with integrated support on a real-time basis. Point-of-sale inventory management can be a great way to simplify your inventory management and sales. Consider investing in a digital payment solution that offers easy integration with your inventory management system to stay updated with inventory levels. Doing so will allow you to reap benefits like improved logistics efficiency, integrated reports, and even sales analytics.
To have a seamless automation experience, it is essential to work with a company that has proven experience in digital payment solutions like Clover eCommerce. AGMS helps you streamline inventory management solutions by delivering personalized insights for your company. We work with your team to understand your requirements and pair you with the required hardware and software solutions that you need for a seamless experience.
Minimize the Inventory Management Hassle with a Tested Team, Discuss Your Needs with an AGMS Consultant Today!