How do I become an Effective Inventory Manager?

Inventory management System for Small business is one of the crucial business processes, which encompasses supervising –

• The flow of goods from manufacturers to the warehouse and vice-versa

• Storage of inventory

• The amount of to-be-delivered products

• Cost-effectiveness of the inventory operations

Following are the inventory management best practices that manufacturers should prefer –

1. Try to maintain an optimal stock level every time

When manufacturers maintain proper inventory levels, the production line runs with optimum capacity. Enough inventory should be available in the finished goods warehouse, to satiate the demands of customers. It is best to avoid overstock of inventory or stockout scenarios.

2. Track inventory through the supply chain

Manufacturers should ensure to track in-house inventory, does not matter whether the stock is available in one or multiple warehouses, or at multiple locations. The key is to have the right amount of the right inventory at the right time and place.

3. Embrace automation

Having every piece of organizational data in a central location eliminates hassles and makes the operations seamless. Hand-held devices, barcoding and other state-of-the-art technologies should be used for better accuracy.

4. Undertake regular cycle counts

Cycle counts that are scheduled on regular basis ensure accuracy, better tracking of reports and save labor cost. Periodic stock review involves a regular analysis of stock on hand versus projected future needs. This reduces the risk of downtime and saves overhead costs.

5. Planning & forecasting

Inventory planning involves researching buying patterns, seasonal demand and location-based factors that present an accurate picture of what goods are needed at certain times and places. Planning and forecasting promote quick and diligent decision making.