What is stock inventory management?
During a busy week’s trade, it can be hard to keep track of stock going in and out of your supply. That’s where inventory management could help. Inventory management is a way of overseeing the flow of goods from production to sale, ensuring optimal levels to meet demand without excess. Manage stock levels, understand sales trends, and make sure the right products are going to the right customers.
In summary:
- Inventory management is a way of automating inventory and sales data
- It works by connecting your sales and returns with your back-end stock levels
- It could save you time and money, allowing your staff to do other things.
How does an ordering management system work?
An order management system supports you and your business through each stage of the sales process – helping you manage not only inventory, but sales and returns too. From the moment a customer makes an order, your ordering management system (OMS) should automate the steps leading up to fulfilment – preparing the item for collection or delivery. They could also help you track order times and the cost of packing and shipping.
How do stock inventory systems support SMEs?
Stock inventory systems have several key benefits for your business.
Keep tabs
A better managed inventory makes for a better managed business. By keeping track of stock levels and optimising them accordingly, you could ensure that you meet customer demand across multiple sites on a daily, monthly or even yearly basis. Take for example, a monthly boost in demand for a specific style of trainers, if you run out, your customers may go elsewhere – especially if you haven’t yet built brand loyalty. Keeping tabs on stock levels can help to make sure you have enough on order or in the stockroom to make the most of the demand. All of this helps to keep your customers coming back – and could help you increase your overall cashflow.
Reduce manual processes
With old fashioned data entry, it’s easy for orders and stock levels to fall through the cracks. Your old spreadsheets will need constant manual updates, and can’t communicate with your POS systems or other stock inventory programmes. This could have a negative impact on your bottom line. Stock inventory systems remove manual processes and human error from the equation. It can also free up time for your staff to work on more rewarding tasks within your business.
Analyse data
Traditionally, predicting customer trends required you to read the minutia of sales data manually. With an automated inventory or order management system, you’ll get analysis across different devices automatically, making data easy to collate and understand. Now, you can see what products customers are ordering and when, allowing you to prepare for spikes, lulls, or trends before they happen.
Inventory management – better for business, better for you
Inventory management systems are perfect for joining the dots between different parts of your supply chain, as well as the front and back end of your business. They cut costs, save time, and allow you to spend less time interpreting sales data – and more time acting on it.
Inventory Management - FAQs
What is the most common inventory management method?
There are a number of ways to manage inventory coming in and out of the business. A common method is known as FIFO – or first in, first out. This helps ensure that the oldest products are the first out of the door. This is a common inventory management method for perishable goods.
Can I use Excel to track inventory?
You could use a spreadsheet to track SKUs, barcodes, descriptions, notes and more. But it’s important to remember that an Excel sheet won’t communicate with your sales software, it will need to be manually updated, leaving space for human error.
What is LIFO?
LIFO (last-in, last-out) is an alternative to FIFO (first-in, first out). It means that the last item placed on an inventory list is the first one to be sold. This means you leave older products on the shelves – which is useful if you have high inventory turnover, or prices fluctuate often.
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Disclaimer
This has been prepared by Tyl by NatWest for informational purposes only and should not be treated as advice or a recommendation. There may be other considerations relevant to you and your business so you should undertake your own independent research.
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