Inventory management is ideally suited to every business model. As a result, you have total control over how inventory management functions. However, to help you get organized, here are some ways for doing stock inventory.
Set parity levels
Essentially, parity levels reflect on the minimal quantity of a certain product that must be kept in stock. This amount is generally determined by the item’s sales volume in the store.
To determine the parity level for a certain product, consider how quickly it sells in the shop and how long it takes for the product to return to stock. Once you’ve confirmed that the number of goods is less than the estimated volume, it’s time to make the order.
Keep in mind that the parity level varies by product and might change during the year. As a result, execute a level analysis on a regular basis.
Use FIFO (First In, First Out)
The acronym FIFO is an abbreviation for the English phrase “First In, First Out,” which meaning “First in, first out.” That is, the first product that comes into your business must also be the first to leave.
Your inventory must be in full order, with the oldest things at the front so they may be sold first. This notion is especially crucial for harmful materials that deteriorate quickly.
Develop the Contingency Plan
A Contingency Plan must be created in order to carry out a quality and efficient inventory of year-end inventory.
The Contingency Plan entails projecting potential inventory management issues and establishing methods for potential remedies.
The main problems are:
- Lack of money to purchase essential products;
- Unexpected sales increase;
- Overstocking;
- Lack of stock space;
- Errors in item calculations generating deficit in quantity;
- Manufacturers with a shortage of products;
- Have a Regular Audit
The Regular Audit is now carried out using software and reports, thanks to technological advancements. However, in order to succeed in your year-end inventory, you must take additional efforts to guarantee that nothing goes out of hand.
You can use:
- Physical inventory: Consists of counting products in stock;
- Verification of points: It is based on the choice and counting of a product, comparing the number with what was foreseen;
- Cyclic counting: Verification of products in rotating programming;
