Ever feel like something is holding your company back from true greatness?
Eventually, every owner or manager discovers there isn’t much they can achieve without proper inventory management optimization and control. At that point, the only way to improve is to adopt smart inventory strategies that won’t get lost in the shuffle.
Whether you are in the automotive, pharmaceutical, medical devices industry or anything in between, these tips will undoubtedly help your business improve its inventory management optimization.
1. Run a Thorough Inventory Analysis
To better control your inventory, you must first understand the items, materials, parts and devices that are currently in stock.
This means conducting running an inventory analysis needed to make informed, well-thought-out decisions that can quickly set you on the path to profitability. Gut feelings or rough estimations won’t cut it.
This is where inventory management software comes in handy. Use it to uncover the nuts and bolts of your inventory. Be sure to pinpoint and evaluate every item on your inventory, including incoming ones and those that are already earmarked for disposal.
Once you finalize the assessment, you should be able to determine these important factors for the optimal items in your inventory:
- Average lead times (how long it takes to restock between the time of order and when you receive it)
- Average buy and sell times
- Price limits
- Average acquisition and disposal times
2. Buy Small Parts in Bulk
Having insufficient supplies results in tanked sales and unhappy customers who ultimately end up migrating to your competitors. Ramping up your inventory through wholesale purchases can cut down lead times and raise your ROI significantly.
Let’s use o-rings as an example. Buying o-rings in bulk can not only push your inventory control game to the next level but also reinvigorate your supply chains and reduce your acquisition times. Clients love when their orders are fulfilled in record time, and when your inventory is always stocked, you’ll never fall out of your customer’s good graces.
3. Improve Communication
Upon close inspection, you’ll realize that the glariest inventory mishaps originate from a breakdown of communication somewhere along the way.
Perhaps a crucial supply chain partner forgot to inform you of an ongoing production bottleneck, resulting in cancelled orders and strained relations. Or maybe your staff was too complacent with its list of priorities that they forgot to place an urgent order.
Whatever the case, poor communication between partners hurts a company’s inventory and ultimately invites losses.
To remedy this, consider using a messaging line that’s both reliable and innovative. That way, you’ll easily streamline communication between your in-house staff and other key supply chain partners. Even with a tool of this calibre, be sure not to leave anything to chance.
Convey all requisite supply requests on time, and countercheck the individual requirements to confirm their accuracy. The communication tool should streamline a previously taxing task, not replace the entire process. So do your due diligence without fail.
Robust Inventory Management Optimization and Control Isn’t a Dream That Can Never Come True
No matter the complexity of your industry, you can rest assured that better inventory management optimization isn’t a question of “if” but rather “when.” Shake off your scepticism and prepare to act.
There is no better time to start your journey to improved inventory management optimization than now. The above tips are the perfect fuel to keep your profitability vehicle going.
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I am Adeyemi Adetilewa, a media consultant, entrepreneur, husband, and father. Founder and Editor-In-Chief of Ideas Plus Business Magazine, online business resources for entrepreneurs. I help brands share unique and impactful stories through the use of public relations, advertising, and online marketing. My work has been featured on the Huffington Post, Thrive Global, Addicted2Success, Hackernoon, The Good Men Project, and other publications.