Five ways you can leverage inventory system for rapid growth
An Inventory System is a great way to streamline your business operations, it involves more than just scanning barcodes to log data. By following the tips below, you can get the most from your software.
Collaborate with Partners and Suppliers
Collaboration is a perfect reason to use the multiple location capabilities of inventory software. By managing supplies from a central location, you can ensure everyone is on the same page. Having access to information from a central location enables you to generate custom reports for everyone involved with your business.
Forecast your Inventory Needs
Barcode based inventory control systems provide users with a wealth of information, however, if you can’t make sense of it, the data is useless. By using the right software for your business, you can use inventory information to eliminate overstock and understock. Barcode scanning provides unmatched accuracy compared to paper-based systems.
Use Custom Barcode Labels
A commonly overlooked feature of barcodes is the ability to customize the labels to fit your exact needs. Custom barcode labels can be printed with custom text and in various colors. This allows you to print location information, logos or your company name on the labels to make essential information viewable at a glance
You can also print barcodes on a variety of materials other than paper. ID badges can be printed on hard plastic, while barcodes for items used in harsh environments can be printed on metal.
Reduce SKU Number Count
Part numbers, model numbers, product codes, and item numbers are all common ways to refer to SKU numbers. Regardless of the term, SKU numbers are essential for improving your inventory accuracy since their unique identifiers for all your supplies and stock. For a more thorough explanation, Chron has an article devoted to the differences between the two.
SKU number optimization is a hot topic for companies since it’s essential for managing inventory. Embracing SKU rationalization within your business enables you to cut down on your barcode counts so you can grow your business without overwhelming staff.
Properly classify inventory types
While inventory software enables you to manage your supplies and stock regardless of location, your items still need to be accessible to staff. You can use ABC analysis to handle large and small physical counts of inventory with ease. ABC analysis is where logistics teams sort inventory by the impact it has on operations.
According to About Money the general rule for managing your stock is as follows:
- Group A will account for 20 percent of your space usage while comprising 80 percent of spending
- Group B will account for 30 percent of space usage and 15 percent of spending
- Group C will account for 50 percent of space usage and 5 percent of spending
Other terms used to refer to spending include transaction usage, unit cost, lead time, and carrying costs. These classifications enable you to cut the time it takes for your physical counts of inventory.
Choosing the right inventory software for your business
If you’re currently looking to implement inventory management solutions, make sure you understand the best practices for handling inventory. Also, keep an eye out for hidden costs. Although choosing the right software for your business might seem overwhelming, by following these tips you’ll be able to make an informed decision.