When we talk about Inventory Management, we all know that there are processes that need to be scrutinized to prevent losses to your business. Even though most are already aware of the usual faults a business owner commits, somehow it still happens. Let us review these common inventory management mistakes and see how you can address them immediately.
1. Not Having the Right System
Prior to choosing an inventory management system, there are lists of variables that you have to consider like your workflow, business processes and your team. It is important to do your homework and research on these systems before fully committing and integrating it into your business processes. It is very important that you understand every aspect of your business such as where is your business now and where do you see it in the next couple of years.
Having the right system for your business should be your topmost priority. As amongst all the mistakes you can make, this can be a very costly mistake for you.
2. Trying to Resolve it on Your Own
The task in managing your Inventory is not simple; you put the information in your spreadsheet, coordinate orders from suppliers, and monitor the arrival of the product to your warehouse. That is why you really must allot some of your budget for payroll so you can hire people to ease these burdens on you.
These are only a few things your business goes through especially when you are trying to keep up with a growing demand from consumers, which is why you should not attempt to accomplish these kinds of tasks on your own.
Aside from the fact that this would consume too much of your time, that time which you could have spent on more important aspects of your business. You must know that in every business, there is no such thing as a one-man show. It is always best to build a team, who knows what they are doing and would give you peace of mind.
3. Absence of Automation
Keeping track of your inventory, coordinating with your suppliers, and monitoring incoming items can mean a tremendous amount of work especially if you are still doing things manually. A common mistake is not taking advantage of an inventory management system. The technology was not made to make our life difficult, in fact, it was introduced to us to make our lives less complicated. The processes that usually take most of your time can be done faster with automation.
Bottom line, if you want to simplify your processes so you can maximize your investment to other aspects of the business, integrate your system with an inventory management system.
4. Inadequate Training
It does not matter what industry your business belongs to, training your people is a must. Providing training to your employees improves their competency and enables them to be effective in their assigned role. What more if it involves running an application that manages the entire workflow of your business? There is a reason why there is a saying that a Company’s Best Asset is its Employees.
It is because it is your people who will keep your business running and help you achieve its goals. Good thing that there are solutions providers that can do just that for you. Not only can they provide you with the system that your company needs, but they can also train your team so that they can use the systems properly.
5. Inadequate Performance Measure
Being aware of the issues you have with the performance in your business is one thing but having no standards in place is another. You need to set up a way to measure the efficiency of your warehouse, inventory turns and how you deal with your customers. One of the main tools to successfully manage your inventory is to effectively measure past performance.
While we know that there are a handful of strategies and methods that are available, the common mistake that businesses make is not reinforcing enough performance measures. It is better to be proactive on how you take on these challenges rather than be reactive, as the market is so volatile and fast-paced and If you overlook these parameters, it could be costly for your business. It is important that as soon as you establish your business, that you already set up in a competitive way to measure your performance. This is to make sure you are able to keep up with the situation that may arise.
6. Neglect to check Inventory
Checking your inventory just because you feel like doing it that day then checking if it matches what you have on record, is completely costly and unnecessary. Why not do this regularly and in small areas of your warehouse? This way, you maximize your resources and be able to accomplish more by doing less.
These are only some of the common concerns and issues faced by business owners. There are a lot more for you to prepare and be ready with so that it does not make much of an effect on your business. To better equip yourself with the tools that you will need, you can book a free scope call.