It’s important to apply inventory management best practices in your business because they will help you save time and money. Here are three inventory management best practices you should consider using to improve your inventory system:
1. Update purchase orders. A common problem that companies face is changing purchase orders after they’ve been created. Sometimes you need to make date changes, quantity adjustments, and account for incomplete deliveries, and receiving errors. This creates problems because inventory projections rely heavily on accurate purchase order information. Make a set of rules, and ensure that daily and weekly processes are in place, and that purchase orders are updated in a timely manner.
2. Budget inventory levels by month. Make it a priority to establish inventory budgets each month, and provide a constant reminder to schedule purchase orders when needed to avoid stockouts. The advantage of scheduling each month is that it will free up your inventory budget by prompting action on all of your overstocked items.
3. Start using inventory management software. Stop using Excel to manage your inventory! Spreadsheets are time consuming and don’t always reflect accurate inventory levels. You should purchase software that will help you figure out how much inventory is on hand, and when to reorder. Good programs will automatically calculate this for you based on the buying trends of your customers. Inventory software helps you accomplish all of this in a fraction of the amount of time it would take to do it all by hand.
Fishbowl uses inventory best practices, and it will improve your inventory by:
You can save tens of thousands of dollars and stay with the accounting software you’re familiar with by choosing Fishbowl’s affordable inventory management software.