Effective inventory management requires companies to know the status of their products, their categorizations and conditions. If handled properly, inventory management can save companies money.
Shopify published a series of blogs that explore some common concepts of inventory management. The first relates to “par levels”. Par levels are the minimum amount of product that must always be available and ready. If your inventory falls below this predetermined level, it is time to restock. Management often orders the minimum amount needed to get above par level, which can be hard to predict since that will vary depending on how popular an item is. Because par levels can change over time, managers must constantly check behavior and activity throughout the year to make sure they have an accurate gauge.
Another practice for inventory management is ABC prioritization. Some products require more attention than others, so prioritize the inventory by which ones need more attention and which ones can use less. For example, “A” is used for high-value products with a low frequency of sale, “B” is for moderate-value products with moderate frequency of sale, and “C “represents low-value products with higher frequency of sales. Anything that falls under category A requires consistent attention because financial impact is significant, and sales are unpredictable. Items in category C have a lesser financial impact with a faster turnover rate.
To be successful at inventory management you must be able to maintain good relationships with suppliers. Whether you need to restock a product quickly or return a slow-selling one, if you have a solid relationship with the supplier, they may be more willing to work with you to resolve your issues. Additionally, they may be willing to negotiate order quantities if, for example, you want to lower your minimum order quantities.
Live video monitoring can also help with inventory management. Warehouses are susceptible to liability from theft, damage and injury. Live monitored surveillance can watch for risky situations in real time, as well as monitor the condition of your inventory. In addition, access control solutions can help manage and track deliveries
In the video below, you will see a truck knock over a stack of inventory on top of a palette.
Inventory management can include various components. The ideal system is different for every company but determining the right techniques will help improve your job and your cash flow.
If you would like additional information on how live video surveillance can help with inventory management, contact us here.