Taking inventory is essential to the success of your business. How else will you know what’s selling well vs. hasn’t moved from storage? Do you have too few or too many products or raw materials? If you schedule time to take inventory, the answers will fuel your strategy to make your business grow. But what’s the best way to take inventory?
What Is the Best Way to Take Inventory?
The best way to take inventory is by using inventory management software, ideally one that allows you to use QR code and barcode scanning to save time and improve accuracy. Although you can use a piece of paper or a spreadsheet, an automated inventory system will save you time and money.
But taking inventory involves more than physically counting items in stock. After you have information from your stockrooms, you’ll need to manage your inventory by forecasting needs, finding the right balance between stock surplus and shortages, and understanding which items are profitable.
Reasons to Use an Automated System to Take Inventory
Whether you’re taking inventory of medical supplies, construction equipment, or office assets, an automated system has features that can help you do it efficiently.
An automated inventory system uses QR codes or barcodes to take inventory, calculate quantities accurately, and give you a real-time status. It has several advantages:
Accurate figures – Inaccurate entries on spreadsheets can lead to purchasing items you don’t need, selling items that aren’t in stock, and wasting time looking for products that aren’t there. QR codes and barcodes produce accuracy that builds trust in your brand and customer loyalty.
Identify inventory shrinkage – Inventory management software uses QR codes or barcodes to help you identify unsold items that are consistently missing. You can use the data to investigate if items were lost, stolen, or damaged and discarded.
Avoid out-of-stock items – Products that are frequently out of stock can lead to rushed production, expedited shipping costs, and customer dissatisfaction. Accurate counts can minimize the rush and the frustration that comes with it.
Reliable forecasting contributes to increased sales, effective marketing campaigns, and efficient production. An inventory control system uses barcodes or QR codes to help you achieve balance in managing your jewelry inventory or ordering the right supplies—at the right time—for your event planning business.
Data-driven ordering – You’ll know when to order and how much to order to meet demands during peak seasons and avoid overordering and waste.
Timed marketing campaigns – Use historical data from inventory management software to schedule promotions and marketing campaigns that help maximize sales and profits.
Efficient production cycles – Automated inventory control can improve production cycles to meet consumer demands. It reduces stress and errors that can occur with rushed production.
Essential Task Alerts
Your results will be limited if you have accurate counts and reliable forecasting but forget to order products, supplies, or equipment. With inventory management software, you can schedule alerts to complete essential tasks on time.
Low stock – After you receive an alert, you can check details on the item and decide if you want to reorder.
Reorder – Use this alert to order supplies, products, or materials before they’re gone. You can avoid disappointing—or losing—customers due to out-of-stock orders or delayed shipment.
Date reminders – Inventory management software lets you schedule date reminders for tasks. Some examples include: