Common Inventory Mistakes That Businesses Mak
Inventory is the foundation of a business, and its effe...
In a technologically advanced world like ours, it is no news that almost everything seems connected to the internet. One of the most important ways by which the internet has been advantageous to us has been the provision of an online marketplace that allows us to trade and exchange goods and services over the internet.
In this era, if your business is not online, then you are lagging, you need to get your business online! Online businesses don’t just end with getting your business on an e-commerce platform. That is just the first step. Like every successful business, E-commerce businesses require proper and effective management to be successful.
One of the important aspects of online businesses that requires attention and an adequate skill set is inventory management. Inventory management is an organized and systematic method of acquiring, storing and selling the products that make up your inventory. This includes both raw materials and completed commodities. How you manage your inventory will play a huge role in the success of your business.
In this article, we will be educating you on how to manage your inventory adequately like a professional. We will be showing you how to track your inventory properly. Keep reading to learn how to be an e-commerce giant.
What Is Inventory Tracking?
Inventory tracking entails keeping track of the products you have, where these products are stored and the amounts available at each site. The ability to track stock levels in real-time is an important aspect of the supply chain for e-commerce businesses that want to scale profitably.
Effective inventory tracking is very important for many reasons. It helps you know what products customers are purchasing so you can restock, as running out of stock can be very frustrating for you and your customers.
You could also lose a lot of money if you are not tracking your inventory as you should. When there is no accountability in a business, then it becomes a mismanaged business doomed to fail. Inventory tracking is therefore as important to small businesses as it is to big businesses, even though small business owners tend to neglect this aspect.
Tracking your inventory in real-time is not a herculean task, we will show you how to do it effectively without having to stress yourself or your employees.
How To Track Your Inventory Like A Pro
There are various ways and methods that business owners use to keep track of their inventories. Each of these methods has its benefits and disadvantages, you should pick the method that you think would best suit your business. Without further ado, let’s get into it.
Use Inventory Tracking Software
This is the ultimate inventory tracking system, it showcases the impact of automation in businesses today. They are very easy to use, and they help you manage your inventory more effeciently.
This method provides a comprehensive and detailed report on your stock. As orders are being completed, employees can scan 2D barcodes that will provide an instant report on which stocks are running low, which stocks are left and which ones are in excess.
The benefits of this method are immense. From helping you monitor your stock in real-time, to helping you scale your business. To help you fully realize the benefits of this method, we will list them out. They include:
The data that this inventory management software stores will help you make data-driven decisions that are profitable to your business. Tracking your inventory with this method is the best boost you can give your business.
Other ways you can track your inventory includes:
This method was used by business owners in previous times when technology was not so advanced. This method is used mostly by small business owners who have immediate access to their inventory.
It involves using a pen and paper to keep records of every activity that goes on in their business. They write down details of every purchase, transaction and loss in a record book.
This method is obviously very flawed and prone to numerous errors. It is also very stressful and time-consuming. Technology has made a lot of things easier, so nobody really uses this method anymore.
This is a more advanced inventory tracking method. It involves using excel spreadsheets to track your inventory. It almost seems like a glorified version of the pen and paper system but computers make it easier.
The truth is that this method is not very effective when it comes to tracking large inventories. It still requires a human being to manually input the details of the transactions. This method is also very prone to a lot of mistakes, these mistakes can have costly effects on your business.
The Excel spreadsheet method doesn’t allow you to keep track of your inventory in real-time. This can be a setback for your business. In general, this method is not worth the stress that comes with it.
Of course, if you can’t get it done by yourself, why not hire a professional? The logistics company will take care of delivering products to your customers, so this also means that they would also be in control of your inventory. This method can prove to be really effective, but also quite expensive. You can do it more efficiently at little-to-no cost at all.
Thankfully app developers have created inventory tracking apps to allow businesses to effectively track their inventories in real-time from wherever they are. While this is a cheaper and more effective method, it can be quite limiting if you are looking to scale your business. This method is mostly beneficial to small businesses that are not looking to expand immediately. But then, who doesn’t hope for an increase?
We hope you enjoyed reading this article, be sure to make further research about each inventory tracking method and choose the best method most suitable for your business. We highly recommend that you use Inventory management softwares, to help make your entrepreneurial journey easier and more profitable.