Top Tips for Inventory Management & Storing Business Merchandise

For a large majority of businesses, inventory is the lifeblood of the operation. This means that investing in good inventory management practices is essential. Here are some methods that you can employ in order to manage your inventory and business merchandise.

Use a Revolving System

In some businesses, some of your stock may have an expiration date. If you want to avoid discarding items, make sure to use the FIFO system. The acronym stands for First In, First Out. What this means is that the oldest items are the ones that need to leave the shelves first. This can be a bit of a stocking challenge when you reorder items. Develop a marking system so that employees can stock your shelves appropriately.

Perform Regular Audits

Physical and electronic counts are an important part of managing inventory. You need to have a good idea of what you’re currently storing. Decide on the frequency in which you need to audit your inventory to keep tabs on it. Some businesses will do a weekly count if they move a lot of items. Other businesses may only need to do a month end or year-end count. Make this determination based on the speed at which you revolve your stock.

Invest in Storage Solutions

There are lots of ways that you can store your inventory. For lesser used items, you may want to look into a storage unit. The caution with this solution is that you still need to know what you have on hand. Keep an accurate list of all the items that are stored in your unit. Another solution is to invest in a shelving system that can store your items in an accessible manner. You may want to develop a mapping system so that your employees know where to find items when they need them.

Implement Forecasting Techniques

One of the single biggest money saving techniques when it comes to inventory management is to be able to forecast. This means that you know how much merchandise you’ll move during a certain timeframe. The advantage of this model is that you’ll be able to more accurately order supplies before you run out. Another perk is that you won’t have to store items for a long period of time. This method helps you to only keep items on hand that you’ll need in relatively short-order.

Employ methods and techniques that will help you to keep track of your inventory supply. Too much or too little can both be detrimental to your business.