Are there some questions that mystify your mind when you think about a successful Inventory Management business? What are they doing (special) more than others? Why are they at the top of the list? Other businesses also invest a huge amount so why did they not touch the heights of success?
Do you have the same questions in your mind? Let’s explain a solid reason for their success and also give you techniques and methods for a successful business.
No matter what type of a business any company does. Whether they are serving their customers online or offering a physical outlet. Businesses consistently have products in their stock. They follow the trends and fashion to get their place in the market. Customers always find products following their demands and requirements. Businesses can never refuse their customers. It’s all the game of inventory management well, it is a hard nut to crack but we provide you with the best techniques and methods to control it. Let’s move forward to the main topic.
Every company has a different type of inventory according to the type of business. There are some techniques mentioned below. You may choose the right one to utilize for your warehouse for good results. Trust me, with the right decision you can get the most bang for your buck.
Economic order quantity
It is the cheapest quantity of stock that should be ordered to minimize the storing and ordering costs. This formula helps to fulfill the customer’s demands with an economic inventory. It is one of the oldest methods of inventory management. This method is adopted by those production firms that do not want to tie up their cash in the form of inventory. They use the economic order quantity model to produce the most numbers of units possible at the lowest cost.
Minimum order quantity
The minimum order quantity also known as MOQ is a stock technique that is mostly used by trading nature business. They calculate the minimum quantity that they must have to sell. They must have this volume to continue its processing. Suppliers calculate it to remove the storing expenses and increase the profits of the business.
Dropshipping
Dropshipping is another low-price method to handle the inventory Inventory Management. In this method no need to handle and spend a huge amount on the warehouse. It’s the easiest way to order products according to customers’ demands and directly deliver to customers. It saves from the hassle of the storehouse and other expenses. The flaw of this method is that it is not suitable for every business.
Just in time inventory management
Just in time or JIT is another amazing and popular technique to decrease the storing cost of inventory. JIT Inventory ordered only in time of need or before delivering to clients. This method puts an end to the risk of dead stock and reduces the storing expenses. Many businesses adopt these techniques to improve their cash flow.
Bulk shipping
In the bulk shipping process, products are ordered in large volumes. Usually, a huge container or a vessel is used for the shipment of the products. This method is suitable for large production businesses. These firms used this method as they need raw materials like chemicals, milk, wood, and raw for mass production.
Reorder point formula
Every business has to face the question as to when should the order be placed for the smooth flow of business purchase and sales cycle. This formula provides you with estimated units of products. At that level, you have placed the order to avoid any disappointing situation. Obviously, this point is higher than the safety stock. In this order, you have to be careful as too early placing orders can cause more expenses because of adding storing cost. On the other hand, if you get late in placing an order your customer will go to another due to the unavailability of products.
Safety stock
How can you handle an emergency demand? How can a business handle if there is a delay in the delivery of products due to any reason? To deal with this situation, a business contains a specific safety stock to fulfill the customer’s needs and wants. In the market the fluctuation of supply and demand is normal. It saves the business from the checkout situation. Every business adopts this method to retain customers.
Deadstock
Deadstock refers to that portion of stock that is never used for or present to customers. It always causes loss to the company. It’s difficult to handle this situation. First of all, there is a need to know which portion of the stock lies in the category of dead stock. Then plan a good strategy to get rid of this. For example, you can combine it with other products, and donate it. If this stock is the raw material you can also contact a supplier to return it.
Inventory forecasting
Here is the most useful method to control inventory Inventory Management that is inventory forecasting. The inventory forecasting is based on the real selling records of a business. This forecasting report includes various information like which season or month the business has the most sales. The selling trends of products which are the most selling products. This information is enough to put your business in the right direction.
How to implement these techniques and methods
All these methods and techniques can only be advantageous if businesses apply them effectively. We show the real picture. Manually you cannot handle your inventory effectively. You must need an inventory Management system to implement these methods. Do you think it will be costly to your business? Of course not. In fact, it will help you to save money, time, and energy.
Are you still worried? And thinking to choose the right inventory system is a tough job. Don’t worry we are here to provide you with a complete solution. Yes, choose SeeBiz (IMS) and use it to implement various with ease. It will help you to monitor your inventory Inventory Management from various places. With SeeBiz (IMS) you can get the inventory reports on a weekly and daily basis. You can avoid overselling and overstocking. The user-friendly system is easy to understand. Grow your business with SeeBiz (IMS).