9 effective strategies in conducting inventory control
For those of you who are currently running a retail business, wholesale, manufacturing or food and beverage business, surely you are already familiar with the terms and inventory control strategies or inventory control. This is one of the activities that must be done to maximize the entire company inventory. In addition, this activity is also useful for maximizing company profits while getting customer satisfaction.
In order for all inventory control efforts to meet the target, of course, a good inventory control strategy is needed. Therefore, on this occasion we will discuss various inventory control strategies in the company’s warehouse you can use as much as possible.
Inventory Control Strategy
1. Set the stock level
One of the things that every entrepreneur is most avoided is out of stock. In addition to being able to disappoint customers, the company will later be able to lose because they fail to get income. What’s more if this condition runs for a long time.
The way to overcome it is to use the minimum stock level management strategy on every item you sell. If later your stock has touched that level, then you can immediately know that it’s time for you to refill stock items. So, new stock can come before the stock is run out and you won’t run out of stock.
To do this strategy, you can specify the minimum stock level by taking a consideration of the length of the average time of goods sold and the length of the supplier to be able to deliver new items.
Usually, some companies will submit this responsibility to the Procurement team in order to be able to supervise stock regularly. Some other companies will utilize certain automatic systems or software that will provide a warning when the stock has touched the minimum level.
2. Storage warehouse management
Another condition that is feared by the entrepreneur is if their inventory is easily damaged or quickly rot. It can happen to the place or warehouse in it in accordance with the relevant goods storage standards. For example, waterproof material is even stored in a moist warehouse, until finally it will be easier to damage.
For this reason, the warehouse used as an inventory place must really be considered as one of the good inventory control strategies. The temperature in it must be well controlled and according to the needs of goods. Shelves or storage should also be checked regularly to avoid various animals that can damage.
The stack of goods must not exceed the load capacity so as not to damage the goods due to excessive loads. In addition, the placement of goods must also be adjusted according to market demand levels to be easier to distribute it. Some items that level market demand tend to be high must be placed on the leading shelves that are easier to reach employees.
3. Inventory Control Strategy by Making a Stock Category
This strategy is intended for those of you who have various variations of inventory items, why? Because the manufacture of this category will make it easier for you to determine the priority scale and later there must be some items that really need more attention than other items. Whether it’s in terms of effects and finance or sales ratios.
One method that is widely used is the ABC method. Goods with categories A are the highest priority, then followed by B and C. The consideration carried out is to use the level of sales and significant ratio or whether or not the impact caused in financial terms.
4. Use of inventory technology
At present, the development of digital technology can also be used to facilitate the inventory control process.
Some entrepreneurs today have many use automatic software in managing inventory, where there are various features such as stock predictions, stock level optimization, distribution process tracking, stock displacement monitoring, to evaluation in terms of report.
This condition will be more efficient when the company is able to integrate it with other systems, such as in Bgian sales or distribution, accounting, and purchase of stock. Because, the end of the report on the inventory section will be used by other parts that require.
5. Resell stock
There are times when problems that inhibit inventory management are suppliers. Sometimes, they become difficult to contact or unable to meet the request in a timely manner. So, it could have an impact on the lack of stock which at that time was needed by the warehouse. You need to pay attention to and you evaluate as an entrepreneur.
However, sometimes the problem can also arise from employers, such as because they cannot pay off the purchase of stock on time or the existence of a problematic document. So, making the supplier party not as excited to serve him, even though the supplier actually has the required stock.
Therefore, this strategy is needed by employers. The whole process of ordering stocks must be adjusted on time, such as using the automatic payment system. In addition, a special portal must also be provided for suppliers, so that they are able to send offers and bills to the company easily.
6. Inventory Control Strategy with FEFO & FIFO Engineering
This strategy is also certainly often heard by those of you who are in the field of inventory control. The aim is to minimize the risk of decay or damage to goods.
FIFO or First in First Out, is a term used to put the earliest items in the outside compared to other items. While FEFO or First Expired First Out is a strategy used to prioritize goods that expired levels faster to be immediately sold before expires.
Both methods have been widely used because they have proven effective to minimize the occurrence of wasted goods opportunities, both because it is damaged or expired.
7. Audit inventory routinely
Often, entrepreneurs who use automatic software for warehouse management no longer carry out physical examinations for their inventory because they are considered to be in accordance with the amount in the system. In fact, this condition can potentially be incorrect input or theft of goods by employees.
Therefore, even though you have used certain software to make it easier for you, but you still have to check physically for your inventory regularly. So that it can be detected immediately if a time is incompatible between the number of items with the one in the system.
8. Make forecast supplies
One good way in carrying out inventory control is to make a forecast or estimated stock inventory. Having stock of goods reaching amounts to hundreds of thousands is a separate challenge that must be resolved by the company.
Even though the manufacture of stock forecast stocks is not easy because you must check the entire stock of stock. But, if you don’t create a good warehouse management system, then you will risk losing stock, both in small numbers or in large quantities.
9. Inventory Warehouse Security Management
If you have already done a variety of inventory control strategies well and strictly but your warehouse remains insecure, then the strategy you are doing is still useless. Because, you must experience loss of goods due to various ignorant hands carried out by certain individuals, both from your own employees or from outside parties.
Therefore, managing inventory warehouse security is very important to be part of your strategy in conducting inventory control.
One way you can do is put a warehouse supervisor who is already loyal and trusted, and has good integrity in carrying out his responsibilities. Next, make a perfect security system, such as using CCTV cameras, security alarms, guard guards, double keys, and other similar things. So, the entire Inventory Control strategy can run perfectly to support good flow of goods turnaround.
How, is it ready to run Stragegi Inventory Control above?
Managing supplies of goods or inventory companies is indeed a complex case. Therefore, a powerful inventory control strategy is needed to minimize while preventing a loss for the company.
To nine strategies above, namely regulating stock levels, managing storage warehouses, making stock categories, using inventory technology, stock re-order, using FIFO and FEFO techniques, conducting inventory audits regularly, making inventory forecast, and managing inventory warehouses can be done at your company.
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