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7 Inventory Secrets to Help Small Businesses Thrive

By: Maria Werner-- 2016-02-19 8:00 am --

Perhaps the greatest challenge in operating a small business is managing overhead and investment expenses. To keep your profit margin high, you need to maintain lower overhead costs and keep inventory spending to a minimum. You also need to purchase the right quantities of inventory, so as to never over or understock your shelves. Here are the top secrets to inventory management that will help your small business thrive.

  1. Never miss an order. Create a fixed schedule for inventory management, so orders are always placed on time. To maximize sales, you need to ensure you have a steady supply of goods on hand. By placing an order late, you risk running out of items, resulting in displeased customers and a reduction in sales.
  2. Rely on more than one supplier. There are a lot of factors that can impact the reliability of a supplier, and product shortages have been known to happen. By relying on more than one supplier, particularly for your most popular goods, you can reduce the likelihood of running out of products.
  3. Compare wholesalers. Is your wholesale supplier cost effective? Explore a variety of wholesale venders to ensure you’re receiving the best value for your items. Don’t just consider cost, but also the quality of the product and the dependability of the wholesaler.
  4. Buy more upfront. While supply and demand should partially determine quantity, sometimes it’s better to purchase more upfront. When buying in bulk, you can receive additional savings. Purchasing large quantities should be reserved for popular items, nonperishable items, and items that don’t go out of style.
  5. Plan for your demand. By regularly analyzing the sales and customer statistics of your company, you can determine the projected sales for each item in the coming months. This will enable you to create a rough estimate of the quantity needed for each product, so you don’t overstock or understock your merchandise.
  6. Factor in coupons, promotions, and sales. When determining your demand, you need to take into account all of the coupons, promotions, and sales your store offers. Promotions and discounted items will often result in a surge in sales for that particular item, but that trend will likely diminish once that sale is complete. To ensure you’re ordering the correct quantities, factoring in sales items is essential.
  7. Prioritize your inventory. Once you’ve established your sales data, you can prioritize your products based on the most popular and least popular items. Make a list of the hottest selling items in your store, and track those items carefully to ensure you always have enough on hand. Be sure to take into account all variables when determining the demand for each of your biggest sellers. Are they seasonal items or year-round? Are they trending or will they remain continually popular? Is it the latest model or will there be a newer model released in the future? These and other factors will influence future sales.

IInventory management is one of the most crucial aspects of operating a thriving company. With poor inventory management, you’ll lose money in missed sales, while needlessly investing in unsold merchandise. With the help of sales and customer data, you can gain a deeper understanding of the inventory needs for your business. Utilize bulk wholesale savings to ensure you get the hottest products for the lowest available price. Search a variety of retail items for the best value today, so you can reduce surplus and increase your ROI.