Any business that sells a product whether that’s a pair of shoes or a piece of pie needs to become proficient with inventory management. Before a customer can purchase an item, it has to go through a company’s inventory management system. Here are some ways to improve your inventory management:
Follow the FIFO Principle
First In, First Out or FIFO means that the oldest item on the shelf should be sold before the newest item gets sold. That might not always be practical because sometimes the consumer just isn’t “cooperating.” However, when it comes to a business that sells perishable goods, FIFO is crucial to avoid waste.
Set Safety Stock Levels
A safety stock level is like a warning system to insure you’ll always have enough stock on hand. The only way to set these levels is to combine sales data with reordering information. If it takes two weeks for a reorder, then your safety stock level should trigger when you’ve got two weeks of inventory left. Obviously, safety stock levels can’t be applied “across the board.” Each item needs to be assessed on it’s own performance.
Automate Whenever Possible
An inventory control system can integrate a lot of helpful technology such as scanners, mobile devices and barcode labels. This tech can help create your inventory database without relying on a physical and time consuming hand count of every item. You can customize this collected data into a wide array of reports that suit your business.
A stock room that is overrun with clutter is going to create problems. And it’s not just the clutter that should be a concern but also the organization. There should be a system in place that can help any employee find an item once they’ve become familiar with the system. This system includes shelving and labels. It also helps to avoid putting similar items next to each other in order to avoid confusion.
Routine cleaning should also be part of the organization of a storage space. Workers should devote the last half-hour of their shift to cleaning up the areas they just worked at. Junk King Salt Lake City can help with this organization, too. The crews from Junk King can’t restock shelves but when you hire them to remove all the discarded inventory, then they’ll be making room on those shelves. Regular clutter clearing sessions with Junk King Salt Lake City will go a long way to improve your inventory management system.