Inventory is a lot to keep track of for any business. Inventory also requires planning, and there are some effective methods even small businesses can take advantage of. We provide some common techniques for inventory control that can help you develop an efficient system.
Review Stock Regularly
The first common techniques used for inventory control is to review the stock regularly. You should look at an item’s history and get a good idea of its value and past sales numbers. This will help you determine trends, and it will help with the rest of the methods below.
Figure Out When to Reorder
When handling inventory, you need to know when to reorder new items. You can figure this out based on when the product was purchased, it’s sales history, and when the item ran out. This will help you figure out the right time to order items, so you get them on time.
Figure Out How Much to Reorder
In addition to figuring out when to reorder items, businesses also need to determine how much of a particular item they need to reorder. Look at an item’s sale history and make sure that you have enough wiggle room, so you don’t run out of a product before a new order arrives.
Prioritize Items and Organize
Organization is key to controlling an inventory room’s stock, as some items in your inventory may have more of a priority than others. A great method to divide up the inventory based on importance is to base it off letters, such as A, B, and C. An easy way to classify each group is by designating each as the following:
- A - items with high value but don’t sell often
- B - items with moderate value and sales
- C - items with low value and high sales
To easily separate each of these categories, use color coding labels that each have a letter and a color that falls into one of these three categories. Color coding will make inventory control far more efficient and ensure that no items get lost in the shuffle.