Inventory Manage Better
Inventory Management is an important task for any seller. It’s necessary to keep demand and supply record because sometimes less inventory became a cause of loss. FBA can do this for you but they will charge for it and it can be the cause of an increase in the cost of the product. If you have enough profit margin then you can use FBA for Inventory management. Otherwise, you can follow the below technique for Inventory management.
Inventory management is all about the numbers and counting. You have to track your stock available & received in the store and sent to the customer from the store. Inventory Management also tells to the seller when to buy more stock and space available in the store.
Technique of Inventory Management
- • FIFO: First in first out is the best practice in the inventory management. It does not only save goods from perished but also provide customer latest product available in the market. With the help of this technique, the seller is able to save himself from future loss.
- • Prioritize: Through this technique seller does the analysis of product and divide into categories example: High-value product, moderate value product, low-value product. It does not only helps to care the product according to their value but also helps in finding product easily from the store.
- • Inventory Checking on a Particular Day: It’s not easy to check Inventory on a daily basis so the seller can divide a particular day for inventory check. Example: in a week; if the store is not big, in a month; if the store is large and when stock received in the store.
• Contingency Planning: Prepare a contingency plan for multiple types of situations example:
- Sell Increases Suddenly and You are Short of Stock
- Cash Flow Shortfall or can’t Pay for Products You Need
- A Heavy and Big Size Product Grab Your Store Area
- Manufacturer not Delivering The Product on Time
- Seasonal Product Need Space in Your Store
- • Drop Shipping: Use drop-shipping method in an online sale. When a product is not available in your store and another seller deliver product to your customer on your requirement. It will decrease your cost of storing product.
- • Forecasting: It’s an important step the inventory management. You have to forecast future event and reason for sale increase in the coming days. Once you forecast your product demand for the future, you can accrue the product.