You put all of your heart and soul into your business — and you expect a little piece of it to leave with each shipment. However, when your inventory is chaotic, shipments get delayed, money gets lost, and customers get unhappy. If you are experiencing inventory issues, it’s time to pack them up and put them on the shelf. Here are some tips, techniques, and tactics to help you streamline your operation, starting with your warehouse.
Invest in a Comprehensive POS System - If you are not already using a point-of-sale system, you should be. These are pieces of equipment and software that help you keep track of everything from daily and weekly sales to payments processed. Many also come pre-bundled with an assortment of business and inventory management tools so that you can keep your books straight.
Become a Forecasting Master - Many new business owners are overly optimistic or woefully pessimistic about what they expect to move within the next six to 12 months. Forecasting, however, is a crucial function that affects your business. While there is no 100 percent fool-proof method for predicting the future, learning how to forecast by using historical sales data can help you better determine how productive you need to be in the coming weeks and months. This will tell you how much product you need sitting on the shelf.
Audit Your Inventory - Do you know how many of each of your products are sitting on a shelf right now? If not, it’s time to grab a clipboard and physically count your inventory. For the most accurate numbers, wait until the close of business. Then, either do it yourself or find experienced employees who know your backroom layout. If possible, plan your inventory audit at least a few weeks in advance. Putting your body next to each box serves the purpose of not only taking inventory attendance but also puts eyes on your products to determine if you’re sitting on anything that’s out of date. You can also see if you have slow-moving stock that you need to offload quickly.
Reduce Downtime - One of the biggest problems facing producers today is downtime. Whether you are making handmade items or rely on a machine for the bulk of the handiwork, when products are not being made, shipments are not filled. Reduce downtime by addressing issues where possible. For example, if your employees routinely call out without notice, enact a new attendance policy. If you have machines that need routine maintenance, schedule that for the overnight hours. One way to help reduce downtime is to implement a barcode system that allows you to stay on top of your inventory, equipment, and supplies without relying on old-fashioned pen-and-paper systems. With barcode systems, you can electronically maintain and manage what you have on hand, as well as give you the ability to access that information — including item descriptions, prices, and various info — via programs and apps, many of which you can download to your phone or tablet. Also, if you’re working with metals and plastics, you can find durable barcodes that won’t fade, become damaged, or fall off your product or supplies. What’s more, many of them can weather extreme temperatures and climates. By keeping track of information at the press of a button, you can help eliminate inventory-based downtime with ease.
Make Quality Control Your Top Priority - Quality control is the process of ensuring that everything you sell to your customers is in top shape. Insight Quality Services explains that there are many different types of inspections you can do. When you are a small business, you might start by inspecting raw materials and then running a quality assurance test just before shipping. This can reduce the number of faulty items leaving your facility and, in turn, improve customer satisfaction.
Appoint a Shipping Agent - Do not allow just any employee to pack and ship items. Create a logical flow, which should begin with the order and end with a designated clerk checking over the packing list and verifying that what goes in the box matches the customer’s order. Once that’s done, they can confirm that everything has the correct address and is packed securely before leaving the building. You can find shipping agents and experienced customer service representatives (along with many other professionals) on freelance job sites.
As you are learning to best control your inventory, remember that time is your friend. There are always going to be challenges, but the more experience you have under your belt, the easier it will be to avoid issues.
