5 questions for SMBs looking to improve their inventory strategy

When it comes to inventory strategy, many small businesses take a ‘set… and then forget’ approach. And yet, the way you buy and then manage your inventory can either set you up for success or leave you lagging behind.

In my years of building Workhorse, I’ve met with numerous SMB owners who want to improve their inventory strategy. These are the questions I ask them.?

1.??Have you audited your current inventory strategy?

Before you can plan to improve, you need to know how you’re performing today. Take a close look at your current inventory strategy to see what could be working better.?

An audit will give you a better idea of any necessary changes; it's about understanding where you are today and where you'd like to be in the future.?

2.??????Should you try a different buying rhythm?

Armed with your audit insights, it’s time to try out new approaches.

The first change you can make is to your current buying rhythm. There are many different types of buying rhythms, from an order pattern method to a reorder point method. Using what you learn from your audit, determine which approach best fits your business and give it a try.

Remember, with all of these tips it’s important to stay switched on and agile. Try out new things but be constantly assessing, refining, and optimising your approach to best suit your needs and the needs of your customers.

3.??????Should you try a different buying strategy?

Next, you may want to consider a new buying strategy. Again, there are a number of strategies out there, many of which you may already be familiar with.?

On one end of the spectrum, there’s something like dropshipping. This is where you only order or manufacture products as they’re purchased by customers, reducing or even eliminating storage costs.

At the other end, we have bulk buying, where you purchase larger quantities of products at a reduced rate. This comes with higher storage costs but less upfront investment. Figure out what works best for you and your goals at the time.

4.??????Could software help? (Spoiler: yes, it can)

Inventory software can be game-changing for SMBs — especially if you’ve been using Excel spreadsheets to date.?

Digitising your inventory strategy can bring improvements in all aspects of the workflow, such as:

Monitoring current stock levels

Calculating hidden buying costs

Forecasting demand

Implementing automation where possible

Using the right software, in the right way, can revolutionise the way you do business. Leveraging automation will empower your SMB to be faster, more productive, more cost-effective, and all in all, improve your inventory strategy.

5.??????Are there other technologies you could be using?

Once you’re comfortable having upgraded from spreadsheets to inventory software, you can then look to other new technologies to improve your inventory strategy.?

RFID (Radio-frequency identification) tags, for example, can boost your inventory management accuracy using the power of IoT. Compared to barcode scanning, RFID tags don't require a line of sight and they're easier to automate — this means you can implement them in more situations than traditional barcode scanning.?

Take a look at what is on the market and see if there are any technologies that can help streamline your inventory management strategy in a way that works for your business.

Take your inventory buying strategy to the next level with Workhorse

The improvements I’ve listed in this guide may feel like big changes to your inventory strategy. But Workhorse’s inventory management software was designed to help businesses like yours — we can help you improve your inventory strategy, automate your workflows, and bring together valuable integrations.

Ours is a customisable solution that works the way you do. Book a demo today.

And if you want some help with order and inventory management, send me an email at [email protected] or a message on LinkedIn, and I’ll tell you more about our easy-to-use, fully configurable platform!