Inventory management can have a huge range of benefits for small businesses beyond ensuring the correct levels of stock.
By amalgamating all of your sales and stock levels into one centrally accessible piece of software or spreadsheet, you can also create bespoke forecasts for each of your outlets and ensure that every one of your stores has the right levels of stock.īenefits of Accurate Inventory Management for Small Businesses If your business has more than one location whether physical or digital, and you handle stock in a central warehouse, you may find that a system with cross-channel tracking is important for your management processes. Sales forecasting is also an integral part of effective inventory management for small businesses, and some management software has forecasting capabilities which can further streamline inventory management processes. Businesses who make a large number of transactions each day may find this to be more of a necessity than smaller stores who make fewer daily transactions. There are some key considerations any business owner should make when choosing the right inventory management software.įirstly it is important to decide whether real-time sales analytics is important for your stock management. Inventory management software offers one of the most convenient methods of keeping on top of your stock levels and reordering.
How To Find The Best Inventory Management Software for Small Businesses Drop shipping only requires an internet connection to set-up and makes storing and managing stock levels much easier, cutting out the middle-man in the process and making the restocking process faster. With dropshipping, businesses can order their stock to be delivered straight from the manufacturer to the retailer or even straight to the customer. Many businesses, particularly brick-and-mortar shops often choose to rent a warehouse or other storage space to store their inventory. Many businesses choose to do this at the end of the year. This only needs to be done periodically if you are already using a POS inventory management system.
This will ensure consistency in inventory management regardless of the season, product or member of staff in charge of management for that day.Įven if you have decided to utilise inventory management features on your POS system, manual auditing is also good practice to ensure that stock levels on your system are accurate. Once you have refined an inventory management practice or routine that works for your business, it is important to reinforce this and make it a standardised process.
When a product is sold, the system will automatically update you stock levels so you are aware how much of certain products you have sold and when you need to restock. Through a POS system, inventory management is almost entirely automated. Most POS systems now have built in analytics software, and some even provide real-time figures for continuous stock management. POS (point of sale) software can play a huge helping hand in inventory management. This management method involves selling products in the same order in which they were purchased or created, and restocking from the back of the shelves to the front. This approach is ideal for businesses selling perishable goods, as it ensures that no stock is lost to expiration dates. From this you will be able to easily identify what products need to be restocked and how much more or less of certain products you need to match your predictions.įIFO stands for ‘first in, first out’. This is most easily done by looking at previous sales history for the same periods, if you have it available, as well as seasonal trends and considering any upcoming promotions. Understanding what you are expected to sell in the upcoming weeks or months is the foundation of effective inventory management. To help any business refine their inventory management processes we have compiled a few inventory management tips to help get even those brand new to handling stock, heading in the right direction. Inventory Management Tips for Small Businesses