Inventory management, by definition, is the process of ordering, tracking, and using up everything your business stocks. From raw materials to finished goods, a solid inventory management strategy will help ensure your company runs as smoothly as possible.
In this article, we’ll dive into why inventory management is so important. (Hint: it’s about two things: bottom line, and peace of mind.)
Why is inventory management important?
Inventory management is important because it ensures businesses know what they’ve got in stock, where it is and how much of it they have. This knowledge helps businesses keep doors open, customers happy and revenue high.
When businesses fail to practice proper inventory management, stockrooms become disorganized, employees become stressed, and over- and under-ordering becomes commonplace. Unsure of what’s on hand, people tend to over-order out of an abundance of caution. This simply adds more unnecessary, disorganized stock to an already chaotic storage room.
But there is a solution to inventory mismanagement! An inventory management system. Whether you choose to keep track of your stock with a pen and paper, an inventory spreadsheet or inventory management software, the key is consistency. Pick a management strategy you and your team can handle, and stick with it.
After all, what you really need to practice inventory control—the art of stocking all the right things in all the right quantities—is true insight into your inventory. And the only real way to gain that is by looking at your inventory usage history.
Pro tip: An inventory app can help you practice inventory control by generating customized, insightful reports with the click of a button. Or, you can use spreadsheets or even simple inventory lists to create inventory histories that help you forecast what to order next.
How should I start practicing inventory management?
To start practicing inventory management, get organized. If your stockroom is in shambles, whip it into shape. To save time and energy, try digitizing your inventory as you organize. Pick out an inventory app (Sortly offers a free trial) and add items as you organize. That way, you don’t have to repeat this process ever again.
Ensure that as you get organized and add items and item details into your digital inventory, you link any necessary barcodes or QR codes. That way, you can simply scan an item to learn more about it, move it to another location, update quantities, or perform any other action.
If you are using an app or software, you should also add pictures, tags, prices… everything you can to create the most robust, detailed inventory you can. You can also set low stock alerts for added protection.
Sortly is a top-rated inventory app that makes inventory management easy. With features like low-stock alerts and in-app QR code and barcode scanning, Sortly offers the best parts of inventory management software at a fraction of the price of traditional software. There’s even a forever-free version!
For more information about Sortly or to start your free trial, click here. Within minutes, you’ll be well on your way to top-notch inventory management.