Techniques For Inventory Management Software That Are Essential


Now that you know why inventory management software is important, it’s time to figure out how to do it. Here are some of the inventory management software strategies that every online shop should consider.

Take a first-in, first-out (FIFO) method

The inventory management software philosophy of “first-in, first-out,” or FIFO, states that your oldest stuff (first-in) is sold and shipped out first (first-out). This is especially critical if you’re selling perishable or expiration-date-based items.

FIFO might be a useful technique even if your products are shelf-stable. Because packaging, design and branding, as well as product attributes, vary with time, it’s critical to rotate inventory to avoid having outmoded products.

You’ll have to keep track of this manually if you’re storing inventory and fulfilling purchase orders in-house. If you outsource to a third-party logistics (3PL) company, they’ll almost certainly be able to set up a FIFO system for you.

Maintain a positive relationship with your vendors

Choosing the proper manufacturer is a critical step for expanding companies looking for the most cost-effective and efficient partner to help them achieve their goals. Finding the ideal supplier for your company, however, is only the beginning. Maintaining a positive relationship with your manufacturer helps guarantee that they are a collaborator rather than a hindrance in inventory management.

Make sure to interact with your manufacturer on a regular basis, especially if you expect a spike in sales or if manufacturing is running behind schedule. Having a good relationship with your supplier will help your retail supply chain work more smoothly if you have inventory quality difficulties, a product that won’t sell, a product that runs out faster than expected, or any other event that requires manufacturing adjustments.

Audit your inventory on a regular basis

While auditing physical inventory might be time-consuming, it’s critical to compare real inventory levels to the amount of inventory you’ve reported online. If you engage with a third-party provider, you’ll almost certainly rely on their tools and data to keep track of inventory levels. It’s critical, though, to double-check that the system’s numbers match your physical inventory.

In between comprehensive physical inventory audits, spot checking might be a more reasonable way to keep inventory audits under control. This entails selecting a specific product, counting the number of units on hand, and comparing the number of units on hand to the number of units indicated in the system or inventory sheet.

If you have a huge product catalogue with a lot of different SKUs, this is extremely useful. When the system marks the product stock as zero, inventory management technology can help streamline this procedure by recommending a spot check.

It’s critical to have regular backups of your inventory levels once you’ve checked them. This might be as simple as once a week exporting data from your inventory management software to a CSV file. You may also use tools like this to set up automatic backups of the inventory levels provided by your ecommerce platform.