When your business was in the initial stages – while you were setting it up and finding your feet – you probably just had a couple of boxes of stock. This would have made keeping track of orders easy: you shipped them out as the orders came in and replenished the stock as it started to run out.
But, as your business has grown, so too has your stock. Two boxes became five, then ten, and now you have so much and such a variety that you have a stock room overflowing products! This means you need to weigh up the pros and cons of using a warehouse to store it all.
Good stock management is so important. It will mean that your company obtains and preserves a suitable assortment of goods while also keeping track of all orders, shipping and handling, as well as other related costs. But, did you know that ‘shrinkage’ accounts for around 1.4% of all sales? This includes theft by customers, staff and administrative errors.
When you are trying to grow your business, attention to stock levels and how you manage your inventory affects your ability to grow. So, are you doing it right? Here are a few tips and tricks to ensure that you are…
Keep a close eye on your stock
This means checking it as it arrives, as well as doing regular stock checks. By doing this you will spot any errors, enabling you to rectify the issue before it becomes a big problem.
Use a system to log stock levels
You need to find a system that works best for you and your business. Log stock as it comes in and goes out, enabling you to easily see what you have and what needs ordering. This could be as simple as keeping an up-to-date Excel document, or you may want to invest in a tool that could help you. This will also help you to keep track of any returns.
Use a storage facility
Did you know that storage units are for more than just household goods? In fact some have space as large as 2000 sq ft – which can be the perfect secure, low cost and flexible solution for any business looking for warehousing space. This is perfect, particularly while your business is still growing because there is no lease, business rates or contract fees. And, you only need to give 30 days’ notice if you want to leave. You can change the amount of storage space you’re using, and take advantage of extras such as a ‘receipt and dispatch’ service which takes deliveries on your behalf.
Give everything a ‘home’ and use labels
If everything has spot in the warehouse, you’ll know where to put it when deliveries arrive, and you’ll be quickly able to see how much you have of each product too. Label each area and create a floor plan so all your staff know where they should be putting and collecting everything. But, make sure they also understand the logging system so they don’t just take it and then mess up stock levels!
These tips should help you to ensure you’re managing your stock management effectively.
Debbie Fletcher
debbiefletcher90@gmail.com
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