Inventory management is an integral part of your business. One that you definitely don’t want to mess around with. The following are some innovative inventory management techniques that if deployed properly, could give leverage to businesses worldwide. Each company has its own inventory management tactics so stick around and you may find just the right one for yours.
Here is an idea you will not expect. If you have an inventory of products, you probably know all about inventory categorization. It is relatively common that segmenting any type of inventory is an effective means to organize it and keep it in a certain order. However, why not take this a step further: Instead of categorizing your inventory by product type or a dull accounting method, why not think of how your warehouse managers are accessing your inventory?
Here is a nice exercise you can try: how about helping your managers be more productive by organizing your warehouse in a way that is most comfortable for their day to day needs? This could immediately make their work more effective, improve your overall productivity and ultimately increase your earnings.
- Go Mobile
When it comes to inventory management, if you haven’t jumped on the mobile bandwagon then you may be missing out on what is now not only one of the hottest trends but more importantly, could save you time and cash. Managing your inventory through a simple and easy to use mobile app could be a huge leap for your company. Such a software solution that is smart and easy to use will allow you to find any product with the click of your finger. From now on, you no longer have to physically search for a certain product yourself since your mobile app manages your electronically marked inventory. This means that you can actually focus on growing your business.
- Predict the future
You inventory management system should be able to predict the future. Sounds crazy right? It’s not. Predictive analytics solutions have transformed the way businesses manage their inventory. In order to properly forecast demand, and build the optimal inventory management strategy, any solution must be tailored to a specific business process, which means that it must take all factors that affect demand into account. Predictive analytics technology will substantially improve demand forecast, and suggest better distribution and replenishment strategies. Make sure that your new inventory system has a predictive analytics solution.
- Minimal is the new black
IKEA was not the first but probably the best known of how to reduce necessary storage space. What can your business (whatever the vertical is) learn from this? It’s simple. You want to organize your inventory in a way that is as clear as possible and you want your employees and customers to enjoy the benefits of your inventory management tactics. This is where minimalism plays key factor. How can you deploy minimalism in your inventory management? While buying volume can reduce the cost per unit, it also means that your cash flow is restricted until those items have been sold to your customers. It’s not just the cost of the item itself. The cost of storage or warehousing should also be taken into consideration. And if you don’t sell it at the right point in time, you could end up marking the product down and discounting to get rid of it.
So how do you fix it? You follow the predictions ( previous tactic) of how much supply you’ll actually need and when. If you still didn’t get a mobile app or you have but it does not include a predictive analytics solution, the best thing to do is look at previous sales. Look at it month by month to spot any trends or seasonality. Identify the less obvious patterns and learn how to implement it on your business. Going minimal simply means you sell exactly what you have. Smart and simple.
Now, the hard truth is, you can use any inventory management technique to control your inventory, but without a good software solution to optimise your strategy, you are fighting windmills.
Having a solid system in place guarantees that you are always playing your cards right.
A one-stop-shop mobile app that incorporates all of the above possibilities and offers an easy to use and friendly user experience, will allow you to detect the financial impact of your inventory management techniques and consequently help you make better strategic decisions that will keep you on top of your game.
This post is part of our contributor series. It is written and published independently of TNW.