For businesses that ship physical products to their customers, managing the inventory in the warehouse can prove to be one of the most important — and challenging — tasks. Proper inventory management is essential for keeping customers happy and maintaining profitability. The following are a few ways you can improve this crucial business activity to keep your company on the right track.
Invest in the Right Tools
Bringing your inventory management practices to the digital age can make a world of difference for your warehouse efficiency. For example, RF Smart is a tool that can help solve inventory management issues thanks to its automated record keeping. By utilizing real time barcoding and other automated features, this tool eliminates the errors that often creep in when companies rely on manual data entry.
Such systems ensure that warehouse managers will always have real-time data available, providing a complete and accurate picture of inventory levels and needs.
Which products are delivering a profit? Which items are taking up the most space in your warehouse? By using inventory management tools, you can also gain access to analytical insights that help you better manage supply and demand.
After all, “slow-moving” products that don’t rack up the sales numbers will only take up space in your warehouse, consuming resources and labor that could be better used for more popular products. With an analytics tool, you could identify these slow movers and develop strategies to unload the extra inventory so you can make room for more profitable items.
Historical data can also help you plan for seasonal fluctuations in demand so your warehouse is always prepped for the latest trends.
Choose Reliable Suppliers
Regardless of whether you sell third-party products or manufacture your own items, having reliable suppliers is essential for keeping your warehouse inventory on track. Warehouse managers should regularly evaluate their suppliers based on the quality of their deliveries. Are items delivered on the promised date? Are they in good condition? Did you receive the right quantity?
An unreliable supplier can completely undermine your efforts to keep inventory levels on track. Use data to help you determine when you need to switch to a more reliable supplier.
With the right tools and practices, your team will be better equipped to fulfill customer orders, while also identifying which products should become a sales priority. Sound inventory management will allow you to improve workplace efficiency and improve your bottom line — benefits that are well worth the initial investment.