Inventory management is one of the key aspects which can make or break a business. In many instances, if inventories are not managed properly, it can lead to losses and waste of inventory items.
Whether you have an e-commerce store or a thriving restaurant business, you need to track your inventory to increase efficiency in your business. The best part is that solving inventory problems can help your business to squeeze more profits and increase margins.
Here are 5 different techniques you can implement to increase your inventory turnover.
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Accurate Your Forecasting
Forecasting is essential because it correctly predicts the demands and will help you determine how much your selling volume will be. However, trying to figure it out yourself won’t be easy.
You can use an RFID inventory management solution to increase the accuracy of your backend operations. It will help you procure goods and raw materials, which are essential to make the most selling finished goods in your business.
It will automatically suggest you allocate how much funds for what materials based on the forecasting it has made. It will automatically make you aware of a low stockpile, which saves costs and space, as you only need a few adequate stockpiles.
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FIFO Approach
The FIFO is a (first-in, first-out) approach. It deals with inventory management, where the materials brought first will be used for manufacturing or goods-making. Even when it comes to selling, it must be that the products manufactured first will be sold to the customers first.
This approach is useful as it doesn’t allow the dead stocks to pile up. It will help your business to keep the inventory rolling.
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Audit the Stock
The stocks are needed to be audited through good inventory management software. A timely audit can help you maintain records and allow you to check whether the stock matches your recorded numbers.
A good inventory audit process can help you to turn the business more profitable and will keep you updated about the backend operations of your business. Once you know your inventory costs properly, you can set the markup price efficiently.
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Maintain Quality Control
Quality is important in every kind of business, and you can get it by following the proper quality management process to ensure that your product is not tampered with or ruined.
To minimise the risk of product damage, consider proper racks and storage space to keep your finished items.
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Track Stock Levels
The stock levels are essential for the business to understand how much it can produce. RFID solutions can make tracking the inventory level easier and alert you beforehand.
It allows you to deal with all the complex aspects of the inventory by making you aware of the stock availability and how much you need to procure to meet your current needs.
Bonus tip: Avail dropshipping options
Outsource your inventory management, if possible, through the dropshipping feature. Everything can be covered, from product procurement to delivery in the right format.
