What are Best Practices for Inventory Management?

Facility Management Software, Inventory Management, Inventory Management Software / December 21, 2020 / Tavleen Kaur / 0

Best Practices for Inventory Management

If you don’t begin upgrading and streamlining your business operations now, you’ll easily slip into bad habits, inefficient practices, and a high inventory cost.

By following the best practices for inventory management, you’ll run and manage an efficient and effective business and warehouse year after year.

Following are few of the best inventory management practices:

1.  Know what sort of inventory management suits your business– As a business owner, you know your inventory flow the best. You can choose between continuous review and periodic review system.
2. Categorize Your Inventory Using ABC Analysis– ABC analysis is a tool to arrange the inventory into a hierarchy of of items that are most important to least important. It will help you maximize storage space and streamline order fulfillment by arranging your stock inside your warehouse  according to how they sell and how much value they add to your business.
3. Make Your Cycles Count– To be successful with inventory management, you must implement a cycle counting program.
4. Optimize the process of pick and pack– The pick and pack process is a set of procedures and tools that your employees use to fulfill customer orders quickly and efficiently.
5.  Manage Your Inventory– It’s recommended to keep low stock levels to lower costs of operation. In turn, cash flow increases because you’re not weighed down by the high price of maintaining stock for long periods of time.
6. Reduce Your Inventory– The goal is to find your inventory sweet spot  – where you have the lowest possible inventory levels without being understocked – in order to maximize growth and profitability for your business.
7. Implement Quality Control– Quality control is of utmost importance in any size business and should be implemented as early as possible.
8.  Optimize– The heart of good inventory management is the knowledge of what you have in stock and managing it well.

Failure to execute inventory best practices could result in loss of customers, cuts in inventory, and eventually employee cutbacks. Therefore, implementing inventory management best practices is vital.

FACTECH AUTOMATION SOLUTIONS PVT LTD offers services like KAIZEN-CAFM and many more which help in Inventory Management (by defining and managing your inventory threshold rules.) and in tracking your consumables.

With the help of software services provided by factech automation solutions you can:

1. Manage your inventory and stock-Make Informed Business Decisions
2. Get auto alerts on threshold
3. Get integrated system- Integrated with Asset Management
4. Get Single window to track all your inventories- Control in your mobile.

To know more about these services please visit facteh.co.in

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Tavleen Kaur