Here's How Industries Are Moving Forward With Inventory Management

Inventory stocking is at the core of every supply chain. If you fall short of stock, you run the risk of losing sales and potential consumers. This is the basis of what is inventory, and its management concerns calculating and managing the retail stock. Also denoted as stock control, it involves activities like storing goods, ordering items, keeping track of it, and predicting the market demand.

With consumer preferences and market demands always subject to change, the right supply of products is critical for success. To accomplish this, industries are implementing smart inventory control techniques.

Techniques adopted to manage stockpile better

Though stock management is challenging, new–age industries are streamlining it with modern techniques, viz. –

1. Investing in appropriate business inventory

Whether it’s for software, doing audits, employing a skilled team or a managerial head, industries are investing heavily on the right inventory to overcome challenges. You too can spend on your inventory by availing credits from lending authorities. For instance, you can apply for a Business Loan from NBFCs like Bajaj Finserv up to Rs. 30 Lakh. This collateral-free loan is approved instantly online by providing only a handful of documents. Moreover, you can benefit from flexible repayment tenor options between 12 months and 60 months.

2. Managing inventories from multiple locations

Among numerous innovative inventory management techniques, employing POS to manage inventories from various locations is the chosen method of many modern industries. Furthermore, personalising some products unique to each area has proven successful.

On the other hand, some industries are having a single view of stockpile by location. Additionally, online tracking of products creates a seamless experience for both manufacturers and consumers in a supply chain.

3. Efficiently stocking inventories

Now that you know what is inventory, maintain an optimal number is essential. Most successful industries conduct proper review and stock inventories accordingly. If a firm stocks too less, it wouldn't be able to fulfil all orders. Similarly, stocking too many inventories turn into a financial burden and depletes the working capital.

Therefore, smart companies consider the past few months’ sales as a parameter before stocking-up inventories. Also, predicting the future market demand falls under one of the efficient inventory management techniques. Thus, a mix of past months’ sales data along with accurate prediction imparts a clear understanding of what to stock in the coming months.

4. Keeping an eye on SKU

An efficient firm knows that every product doesn’t feature similar demand-supply visibility pattern. Thus, keeping an eye on SKU and maximising resources on profitable products with new stockpiling help industries to move forward in business.

5. Resolving inadequate stock through smart pricing

Poor stock management increases your running costs, thereby losing out on big profits. Hence, many industries get rid of their deadstock by implementing smart pricing strategies.

Why is efficient inventory management essential?

Since you’re aware by now what is inventory and how to manage it, the question arises why it is crucial to do so. Inefficient inventory management can lead to –

• Deadstock

If a company has excessive stock in its possession, sometimes it’s removed from sale. It leads to stock spoilage or dead stock.

• Increasing storage cost

Sometimes a firm mistakenly stockpiles its slow-moving inventories rather than the fast-moving ones. This leads to an increase in storage cost.

Summing up, these inventory management techniques will help you understand how top businesses successfully increase their revenue and profit margins despite competition. Bear in mind; an effective stockpile management is crucial to keep your business turnover high.