| How do you manage your inventory? The amount | | | | are not giving the product directly to the customer |
| and the number of product lines can vary greatly | | | | then you need dispatch procedures to manage the |
| between different business. Some businesses in a | | | | outgoing orders and to ensure all the stock in the |
| niche market may only have 5 or 10 products where | | | | order is dispatched accurately and the data recorded |
| other businesses can have thousands and thousands | | | | in the system. |
| of product lines. Regardless of the number of lines | | | | Step 3. Customer returns and supplier returns. |
| the process to secure and manage inventory is the | | | | If you stock is faulty then you need to receive the |
| same. The factor that size and volume creates is | | | | stock back from the customer and then track the |
| that if you have inefficient processes and systems | | | | process of returning this to the supplier and getting a |
| the problems are compounded. | | | | credit note. So many businesses are lazy in this area |
| At the basic level how do you manage inventory? | | | | and do not have a good inventory management |
| Step 1. Inventory is ordered. | | | | software system that helps ensure they not only |
| To do this you need to work out what you need to | | | | return the stock but get a replacement or a credit |
| order based on the customer demand. You never | | | | note/refund. Do not burn your money here, ensure |
| get your estimate of customer demand perfect but | | | | your systems gives you the ability to track on follow |
| after a period of time you can get close. So to | | | | through on supplier returns. |
| confirm this step again you need to order the stock | | | | Step 4. Stock adjustments and stock take |
| that you expect customers to purchase over the | | | | Stock will get damaged, lost and sometimes stolen |
| next week or month depending on the shelf life of | | | | so you need the ability to adjust stock levels to |
| your product and also the financial cost of holding | | | | ensure your inventory management system is |
| that stock. | | | | accurate. This is completed through stock |
| This sound pretty easy but in reality this is where so | | | | adjustments and then on a larger scale a full stock |
| many businesses owners spend many many hours. It | | | | take. For the stock take process you need to be |
| is this task of ordering that is one of the most | | | | able to print out your current stock list and then go |
| painful. If you get it wrong it can cost you a lot of | | | | through the process of counting and recording the |
| money. | | | | stock levels so that the system is accurate. |
| So what tools does inventory management software | | | | Note: A good system allows you do complete partial |
| need to provide to make this tasks more accurate | | | | stock takes so that you do not have to do the |
| and efficient? | | | | stock take at the one time or you can do a rolling |
| A good system will include the ability to set minimum | | | | stock take. |
| stock levels and stock re-order quantities. The | | | | Step 5. Product pricing and stock reports |
| software should then be able to show the user what | | | | It is vital that you can quickly get reports on what |
| stock has hits its re-order level with tools to quickly | | | | stock is moving, what stock is not selling and what |
| add these items to a purchase order. | | | | you are making money on so that you can manage |
| The other things that is also important is the ability to | | | | your stock levels and most importantly your margins. |
| be able to see what stock is required for sales | | | | A couple of very important features that you find in |
| orders that you do not currently have in stock. | | | | a good POS system is the ability to change prices via |
| The above two capabilities are the most important | | | | the incoming goods screen so that as you see how |
| tools you should look for in your inventory | | | | much you are paying for stock you can adjust the |
| management software from a purchase order | | | | price to maintain your margin levels. |
| perspective | | | | The other feature unique to a limited number of POS |
| Step 2. Receive the stock. | | | | systems is the ability to see an entire category of |
| This step is the simple process of receiving the | | | | products including the stock levels, the average cost |
| stock. However what you need here is systems of | | | | price, the last cost price and your margins with the |
| control to ensure each pallet, crate, and box is | | | | ability to make bulk changes and individual changes on |
| checked against the purchase ordered so that you | | | | the one screen. This re-pricing tools is so valuable and |
| ensure what you have ordered has been received. If | | | | save hours upon hours not to mention boosting |
| there is something missing it needs to be noted in | | | | profits. |
| your system and either placed on back order or the | | | | So in summary good inventory management |
| purchase order changed. | | | | software provides the tools you need to manage the |
| Your system is only as good as the data entered by | | | | above steps. I encourage you to spend the time |
| you and your staff. if you are not disciplined then | | | | researching so that you find the right system with |
| you will lose control of your inventory. | | | | additional tools that are designed to save you |
| Step 3. Sale and dispatch of your orders. | | | | countless hours each week and to ensure you |
| This is where stock leaves your control through sales. | | | | control your stock levels and expenses in addition to |
| Items through the sales process should be scanned | | | | your margin levels. |
| to ensure accurate movement of the stock. If you | | | | |