How to Take Control of Your Stock and Inventory

Whether you run a small local thrift store or manage a massive multinational operation, inventory management is the backbone of any company. But what do you do when you can’t keep up with your stock? 

Better stock management guarantees smoother operations, reduces unnecessary costs, and allows you to meet customer expectations without fail—key elements to any successful business. 

Make the most of your stock with smart and practical inventory management strategies. From advanced stock management software to trend forecasting, here’s how to take control of your inventory.

Utilise Inventory Management Software

Inventory management software has revolutionised stock management. With a centralised platform that lets you effectively track stock levels, monitor sales trends, and streamline reordering processes, your business can maximise return on all stock items. 

For example, retailers can use automated low-stock alerts to avoid overstocking or running out of high-demand products during peak seasons. 

This type of management is good not only for your budget but also for your sustainability bottom line. Sustainable supply management makes for good business by helping you lower costs and stock inventory smarter. 

Inventory management software also offers actionable insights with advanced analytics. For example, you can identify slow-moving items and decide whether to bundle them with popular products or run targeted clearance sales. 

With inventory management software, you’re not just tracking stock but optimising it while doing your part for the environment. 

Implement ABC Analysis for Stock Prioritisation

The ABC analysis method helps categorise inventory based on its value and importance. 

This system divides stock into three categories:

• A: These are the high-value products with low sales volume that require more stock control and forecasting because purchasing them for your inventory is expensive.

• B: These items are mid-range products in terms of value and sales. It’s better to maintain balanced stock levels to meet supply and demand. 

• C: These are low-value, high-sales products, which you should keep well-stocked to meet demand.

With the ABC method, you can allocate your resources much more efficiently. 

Imagine you’re a thrift store retailer. With the ABC method, you can focus more on managing premium high-end recycled clothing (A items) while stocking cheap retro or vintage items (C items) for quick sales.

Knowing which items generate the most revenue will help you optimise cash flow, avoid overstocking less profitable products, and maximise storage space.

Conduct Regular Stock Audits

While technology can streamline inventory tracking, physical stock audits are crucial to ensure accurate stock take.

Schedule periodic cycle counts to double-check your recorded inventory with the stock on hand. 

Begin with high-value or fast-moving product items that could have a significant financial impact if not managed accurately. You can identify and resolve inventory issues before they escalate.

Invest in tools like barcode scanners or RFID systems to make the process efficient. It’s a great way to reduce manual errors and speed up the counting process. 

Regular audits are also a good way to build trust with your stakeholders. It demonstrates your commitment to transparency and accountability. 

Adopt Just-in-Time (JIT) Inventory Practices

The Just-in-Time inventory management system works well as a way to reduce carrying costs and minimise waste. 

Using the JIT method, you can maintain leaner operations by receiving goods only as they’re needed for production or sale. This method works especially well in industries with unpredictable demand, like fashion or custom manufacturing.

Take, for example, a boutique that specialises in made-to-order clothing. By adopting JIT practices, they can keep raw material costs low and ensure each piece is crafted specifically to customer preferences. 

One caveat: You will need reliable suppliers and a robust demand forecasting system to avoid delays or stockouts. You’ll have to work closely with your supply chain partners to ensure timely deliveries. If this isn’t the case in your industry, it would be better to invest in robust forecasting technology.  

However, when executed well, JIT can significantly boost efficiency and profitability.

Leverage Data for Demand Forecasting

Demand forecasting is essential for optimising inventory management. By analysing historical sales data, market trends, and seasonal patterns, you can predict customer needs and adjust your inventory. 

Let’s say you run a gardening supply store. You might notice an annual surge in outdoor furniture sales in late February. With this insight, you can then stock up on patio sets and garden accessories well in advance. 

You can easily keep stock levels consistent with customer demand.

Demand forecasting also reduces waste by preventing overstocking of items with limited shelf life. It’s a win-win strategy that benefits both your business and the environment.

Streamline Supply Chain Collaboration

A well-coordinated supply chain is the backbone of any successful and efficient business. By collaborating with suppliers and distributors, you can guarantee timely deliveries and minimise supply disruptions. 

Electronic data interchange (EDI) systems are another powerful way to streamline communication and reordering. 

For example, a restaurant with a well-established EDI system can automatically reorder perishable goods based on preset thresholds both reducing waste and ensuring consistent menu offerings. 

Inventory management becomes significantly easier and more efficient when your supply chain runs like a well-oiled machine.