It is important to apply inventory management best practices in your business because they will help you save time and money in new and exciting ways that you may never have considered possible before. These practices include taking advantage of the latest technology to help you automate many of your business processes in the warehouse. Here are three of the biggest inventory management best practices that 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 have been created. Sometimes you need to make date changes and quantity adjustments, and other times you need to account for incomplete deliveries and receiving errors. This creates a variety of 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 also make sure 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. In fact, you can even set up automatic reorder points so that once an item in your inventory hits a minimum quantity that you have assigned to it, the inventory system will inform you that you need to order more of it to prevent a stockout.
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 management best practices, and it will allow you to dramatically improve the way you monitor and manage your inventory by:
- Seamlessly integrating with QuickBooks. It is the #1 requested manufacturing and warehouse management solution for QuickBooks users because it allows them to stay with the popular accounting software while adding badly needed inventory management features.
- Giving you efficient inventory management features. That way, you don’t have to attempt to recreate those features in Excel and rely on manual processes to enter inventory data into spreadsheets, but automate that job.
- Managing inventory across multiple locations. You can add as many warehouses as you like and then add sub-locations to each one, such as aisles, shelves, bins, and specific areas of the warehouse dedicated to different kinds of work.
- Saving you enough time and money to pay for itself in a short amount of time. Many small and medium-sized businesses report this happening within just a few months of purchasing the software.
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.
Inventory management best practices vary by industry and even by company size. But, in general, the three most important best practices are to:
- Update purchase orders
- Budget inventory levels each month
- Start using inventory management software