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Top 5 useful tips to improve your inventory control

By Admin
Published in Business
August 12, 2021
4 min read
Top 5 useful tips to improve your inventory control

Well-done inventory control is essential to avoid waste due to accumulation or shortage of products. But to achieve this goal, it takes a lot of organization, technique, and tools suitable for the job.

One of the changes that have taken place in this new environment is the possibility of operating with the so-called “infinite showcase”, that is, selling products from the physical store in e-commerce.

In this context, inventory control must be prioritized, because the company will depend on it to know, with clarity and precision, the quantities of each item existing in the company — from raw materials to final products.

And, as you can imagine, when it is not carried out effectively, problems can occur such as holes in the stock: the actual quantities of a given item do not match what is registered in the system.

For this article, we selected 10 essential techniques to improve your e-commerce inventory control, regardless of size or industry. Check out!

1. Record all your business inputs and outputs in a computerized system

**inventory record**
src: unsplash.com
It’s worth starting with a recommendation of the minimum expected in inventory management: record all objects entering and leaving the company, without exception, and use a computerized system for this.

Recording inventory in a simple spreadsheet invites human error, even with the use of an electronic spreadsheet.

Today, there are computerized systems specialized in stock management, which manage to organize all the details of each product in the best possible way, facilitating this management and minimizing failures.

In addition, these systems have practical functionality, such as alerting for the validity of perishable items or automating inventory rules, such as “first in, first-out” (PEPS).

To ensure that all inputs and outputs are being logged, structure processes and define procedures for these activities.

Reinforce them in training with the team and also with internal communication, preventing theft from stock.

2. Buy the right size and work with a reduced stock

**stock size**
src: unsplash.com
A small inventory is much easier to organize than a large one. In so-called lean manufacturing, a methodology that was born out of Toyotism, this is done based on the pull system — or pull.

In this case, instead of a company’s products being “pushed” through the processes until they reach the final end, the logic is that of a demand that “pulls” the production line.

With this view, a productive sector will only request the purchase of a raw material if it makes sense, according to the demand for the final product.

Naturally, this demand needs to be anticipated by the marketing and sales sectors, to prevent the customer from demanding a product and it still needs to be produced.

With the philosophy of the pulled system, the company starts working with smaller stocks, both of raw materials and final products.

The advantage is that the management of this stock becomes simpler, the physical space required becomes smaller and waste costs are reduced.

In some situations, it may be necessary to carry a larger stock. This happens in preparation for something seasonal, such as commemorative dates that require greater availability of products.

Another common situation: when managers are faced with an unmissable opportunity to purchase raw materials.

But the idea is that, with planning aligned with other sectors, the stock will always be as lean as possible.

A recommendation for those who want to have a lean inventory is to maintain a close relationship with suppliers, thus facilitating the speed of obtaining raw materials and avoiding their scarcity.

3. Standardize item descriptions in the system

**Stocking system**
src: unsplash.com
Have a clear pattern of each item in the system and avoid confusion about what is and what is not in stock.

To do this, use a product control sheet format that is enlightening, complete, objective, and effective.

The main purpose of a product ticket is to know exactly what it is, without having to physically go to the store and see for yourself.

This control sheet will also contain information on the date of entry and exit of this product and all its movements in the company.

Each product is unique, but it is essential that there is a pattern on the ticket to simplify the entire inventory operation. Of course, the best way to do this is with a computerized system.

4. Automate part of inventory control

**Using technology to automate**
src: unsplash.com
Use technology to automate some of the most repetitive and bureaucratic tasks in inventory control.

To increase the speed of processes in this sector and have more precision in them, use a computerized system that is able to assume part of the responsibilities of employees.

Automation brings many advantages when applied to inventory management: the software does not get tired or make mistakes due to distraction.

In addition, they are much faster and can free up the team to carry out other tasks that are more decisive for the growth of the business.

Contrary to what some laymen might imagine, inventory control is much more than bureaucratic task. The priority here is the planning, the accommodation technique, and the elaboration of standards for the products.

Repetitive activities, such as registering products and constantly checking them, take up a lot of team time.

With the automation of part of the inventory control, this sector becomes more efficient, accurate, and potentially cheaper.

5. Establish periodic inventory inspections

**inspection**
src: unsplash.com
Even with all the above tips being followed to the letter, failures in the process can happen.

In a moment of distraction, a product can enter without being properly registered and forgotten in stock.

Likewise, a perishable raw material may have been incorrectly accommodated and expired before the deadline, or an item may have been registered as another visually similar one, causing holes in the stock.

In order to detect all these failures before they become real problems in the operation, it is recommended to establish a routine of periodic inspections of the stock.

They can be semiannual, monthly or even daily, depending on the type of product stored and the risks involved.

Establish a routine and method for this periodic inventory inspection that fits your business needs.

And, in addition to finding and fixing errors, take this opportunity to investigate why these failures happen and improve the processes that lead to them.


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Admin

Admin

Content writer & editor on oneshekel.com

Table Of Contents

1
1. Record all your business inputs and outputs in a computerized system
2
2. Buy the right size and work with a reduced stock
3
3. Standardize item descriptions in the system
4
4. Automate part of inventory control
5
5. Establish periodic inventory inspections

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