6 Steps to Optimal Inventory Management
As one of the most important business management, inventory management comes with a variety of issues that can arise from time to time if you are not able to manage them properly. Problems such as stunted transportation, supplier and manufacturing problems and false sales forecasts are a handful of the issues you will face.
But surely we want to avoid all those problems is not it? As successful business owners, of course we want a solution that can avoid, overcome and optimize inventory management.
Therefore the following 7 steps you can allow you for having optimal inventory management
Replenishment Policy – In keeping adequate inventory levels, this is very important. Regularly check your warehouse layout and workflow and inventory settings before setting up replenishment policies to ensure that everything can be fully optimized.
Evaluate supplier performance – use data from accounting and purchasing to assess supplier’s performance, quality and price. Business intelligence software can allow you to create queries to evaluate suppliers in finding trends and identify areas to improve profitability.
Real-time quality measurement – check the quality of goods when they are shipped and have a system that tracks whether items are approved or rejected. Create policies that can automate whether items should be returned or repaired.
Tracking costs – miscalculating or underestimating sales costs will have a negative impact on business profitability. By knowing the actual amount of financing sales, you can set prices that match the profit targets.
Knowing customer buying habits – accounts receivable and sales order data allows you to know your target customers so as to improve your ability to predict buying trends so as to predict the level of inventory required.
Monitoring your sales channel- there are a number of issues that could disrupt your sales funnel so it’s important for you to detect the problem as soon as possible in order to take the right action immediately without having to give up your market share.
Following these 6 steps will greatly help optimize your inventory management. All the above steps you can get by implementing ERP software such as Acumatica Cloud ERP.