With the start of the new year, resolutions are made to change the status quo. If your New Year resolution centres around improving your stock management effort, then here are 12 easy steps to help you along the way.
1) Get into the habit of recording your material movements daily in a spreadsheet.
2) It is a good idea to ensure that the lead times are set to generous tolerances to avoid disappointing your customers with possible delays.
3) Build an approved stock list. This will allow you to identify the items which you want to stock and separate them from the items which are redundant.
4) Categorise your inventory into fast-moving items and slow-moving stock.
5) It is important to understand the average sale value and the order quantity of the slow-moving items to determine whether these items should be replaced with more relevant alternatives.
6) Prepare forecasts of value and volume for each item with recurring usage.
7) Ensure you set clear minimum-stock levels to ensure that you can re-order new stock in plenty of time.
8) Use your forecasts to help you estimate the re-ordering schedule for recurring-usage items.
9) Set your business clear turnover and profitability goals.
10) Understand possible unusual sales levels at the end of each month to identify future opportunities and challenges.
11) Set your business monthly KPIs which will allow you to monitor your progress towards achieving your turnover and profitability goals.
12) Consider automating your inventory management effort with a trusted, accredited stock control solution such as StockAssist.