5 Steps For Optimizing Your Inventory Management
Equipment management has an impact on all business functions, particularly operations, marketing, accounting and financy. So when done wrong, it causes problems for the whole company. Here are 5 easy steps for optimizing your inventory management.
1. Reduce Redundant Inventory
Afraid of being caught short, it’s easy to spend too much on inventory, which can eat up working capital and erode profits. But old inventory can be very hard to move.
How To Do It: Start with some decent projections of how much supply you’ll need and when you or your employees and other stakeholders need it. The best gauge is what you’ve lent or sold in the past. Make sure you don’t forget about seasonality!
2. Error-proof Your Inventory Tracking
Once you know how much you need, you have to make sure you actually have it on hand. Opportunities for miscounts are everywhere: during receiving, during order fulfillment and so on…
How To Do It: Using electronic data interchange (EDI) and bar code scanning can help eliminate data entry errors. For example, you can implement a system of so-called “cycle counting.” Choose a few items a day and compare the inventory record to the actual count. Best sellers should get counted more often.
3. Prioritize Your Inventory Management
It can take an outsized amount of time, frustrations and resources to keep track of all the details for each piece of equipment. So make sure you don’t have to go through this hassle.
How To Do It: First, try to get an overview of your inventory and focus on the items that matter most. Generally, 80% of demand will be generated by 20% of your items. Spend most of your effort on those “A” items, forecasting, reviewing in-stock position and reordering more frequently.
4. Stop Using Spreadsheets
It may seem natural to use spreadsheets such as Microsoft Excel or Google Spreadsheets to track your valuable assets. If you are still tracking your inventory the ‘old way’, you’re basically asking for trouble. It’s pretty easy for spreadsheets to be accidentally deleted or for changes to be lost (as most likely anyone can edit them). Especially for multiple employees or students working with the same spreadsheet.
How To Do It: Use a cloud-based inventory management system like Cheqroom. Not only will it save you a headache, but it will also save you a lot of time and money. This step-by-step solution includes a lot of features, allowing you to streamline your asset management process.
5. Make Sure You Can’t Lose Your Inventory Data
Congratulations! You’re happily bar-coding away, and you’ve got your inventory stored in an online system. But what happens if there’s a fire or your computer is badly damaged or stolen?
How To Do It: First, take a deep breath and consider the worst-case scenario, such as fire or theft. Then, move your equipment management to the cloud. With Cheqroom, you’ll always have your complete inventory at your fingertips. It’s also not a bad idea to send a backup copy of your inventory data to your accountant.
Experience the hassle-free advantages and try it out for yourself!