- Your business needs to implement the right inventory management strategies in order to be successful
- Just In Time Inventory Management is a strategy that focuses on adopting the approach of ensuring that only what’s needed to fulfill current and expected customer orders is kept in stock
- With the right inventory optimization strategies for your warehouse, you’ll be able to run a more successful supply chain that leaves you having an adequate stock and well-managed warehouse
The topic of inventory management is something that puts all but the most enthusiastic logistics buffs to sleep – but the fact of the matter is that it’s critical to the success of any eCommerce business!
Adopting the right inventory management strategies, especially during the busy and volume-heavy peak shipping season, is crucial. Here’s a closer look at some useful inventory management tips to help boost your business.
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What Are Some Inventory Management Strategies?
In order to increase the efficiency level of your business and, at the same time, meet customers’ demands more effectively, your business needs to implement the right inventory management strategies. Here are 12 of them to seriously consider for your company!
1. Use the Just In Time Inventory Management
Just In Time Inventory Management is a strategy that focuses on adopting the approach of ensuring that only what’s needed to fulfill current and expected customer orders is kept in stock. This way, you can cut your warehousing costs and better optimize your existing storage space more cost-effectively!
2. Employ a Safety Stock Inventory
With this strategy, a business owner makes sure that a small, but surplus amount of goods are kept on-hand. This way, they’re able to guard against any unexpected surge in demand that could strain their existing product stock.
3. Automate Your Inventory Management Systems
Automated stock management system is not only more efficient than manual stock management, but also more precise, time-saving and productive. By automating their stock management, business owners can cut costs while also reducing errors and increasing efficiency!
4. Use Data and Analytics
Using data enables business owners to always have accurate product information and sales forecasts at a moment’s notice. With the information, they’re able to better predict product market demand and, in turn, help their businesses to scale their inventory up or down, depending on the immediate need.
5. Use Software to Simply Stock Management
Using the right tools can help make your inventory management much more efficient and accurate, while reducing the likelihood of human error!
6. Integrate with Mobile Technology
By downloading any apps for inventory management tools, business owners can access their critical stock data anytime and anywhere!
7. Forecast Your Inventory Accurately
This strategy is one of the most important when it comes to proper inventory management. With accurate forecasting, business owners are able to make informed decisions and predictions on order placement from customers.
8. Employ a Conventional Manufacturing Strategy
This is aimed at the prevention of idleness, either by employees or machinery. By doing this, productivity is boosted dramatically!
9. Use Material Requirements Planning
This particular strategy entails the use of computer software and other applications in effectively managing inventory. Success is achieved by breaking down inventory requirements into varying planning periods in order to ensure the smooth running of all operations concerning inventory.
10. Employ the Economic Order Quantity Model
With this model, it’s assumed that a customer’s demand is constant and as such, inventory will deplete at a fixed rate until it finally reaches zero. The management strategy times reorders to avoid shortages or overages of products.
11. Try Using Batch Tracking
Also known as lot tracking, this strategy entails tracking goods as they travel along the distribution chain. For maximum effectiveness, this tracking is done using batch numbers. It shows where goods came from, where they’re sent, the quantity that was shipped and if and when they’ll expire. Using this data, business owners can better optimize their supply chains and manage their stock more efficiently.
12. Use a Consignment Inventory Strategy
Finally, this process entails the wholesaler giving their goods to retailers without any payment made by the retailer. With this arrangement, the wholesaler still owns the goods until the retailer sells them.
How Easyship Can Help
With the right inventory optimization strategies for your warehouse, you’ll be able to run a more successful supply chain that leaves you having an adequate stock and well-managed warehouse. This, in turn, will help you boost your efficiency, reduce errors and lower your expenses.
Easyship offers fulfillment assistance and partners with 20+ warehouses around the world.
Sign up today to get the fulfillment help you need and take your business global!