HOW TO PROPERLY MANAGE YOUR BUSINESS INVENTORY

Proper inventory management is the backbone of a successful business and it involves knowing how much inventory to purchase, when to purchase and tracking inventory from the point of purchase or creation through to selling. It is a balancing act.

On one hand, having more inventory than you need to meet customer demand leads to overstocking and tied up cash. On the other hand, not having enough inventory to meet customer demand leads to under-stocking and you may lose out on sales. It is of high importance to ensure you optimize your business inventory, that is, stock the right amount of inventory to meet customer demand, not too much, not too little. The following practices ensure that you manage your inventory properly:

1.) Track and analyze sales

Sales analysis goes beyond simply adding up sales at the end of the day. It entails understanding not just sales totals but also the broader picture of how items sell which is important in managing inventory. Analyzing sales gives valuable insights useful in identifying trends and customers buying behavior that can be used to determine exactly how much stock to purchase and where to adjust your stock in order to meet customer demand. Sales records on paper might not give you a deeper understanding into your sales trends, instead invest in a Point-of-Sale software that generates quality sales reports with broader parameters such as Uzapoint to better track sales, analyze trends and gain valuable insights that enhance management of your inventory.

2.) Employ technology

Spreadsheets, pen and paper are inefficient tools in managing and tracking inventory. Instead, invest in a good quality Point-of-sale (POS) software such as Uzapoint which contains an inventory management module that will enable you to track inventory in real-time. When you make a sale, Uzapoint automatically updates and adjusts inventory levels and the cost of goods on hand. It can as well be used in the manufacturing process to track supplies and raw materials as they are used. When done correctly and with capable software, data entry errors are removed from your inventory counting and you have better reporting capabilities.

3.) Make use of purchase orders

Purchase orders are documents detailing purchases, item, quantity and price, whose purpose is to track orders placed with vendors or suppliers. When goods are received, they are then examined and compared to the purchase order to ensure that the right item, in the right quantity, was received and that the price charged on the invoice is correct. Purchase orders ensure that goods are ordered in a timely manner and in the right amount thereby eliminating over-purchasing and ordering late. With Uzapoint POS software you can as well generate digital purchase orders and email them to your suppliers enabling you to better manage your inventory levels and the purchasing process in your business.

4.) Make data-driven decisions

Inventory analysis is the process of reviewing data to determine the right amount of inventory to stock and the most efficient way to analyze inventory is from reports. One of the key benefits of a quality Point of Sale (POS) software with a robust inventory management module such as Uzapoint is the inventory data and reports it can provide in real time to help you make data-driven decisions. Uzapoint provides up-to-the-minute analytics on inventory levels, inventory costs, inventory purchases, reorder levels and stock takes that enables business owners to better manage inventory and keep up with customer demand.

5.) Set your reorder levels

Reorder?level is the minimum quantity of each item in your products that needs to be on hand to prevent stock out. If your inventory dips below that quantity, it means that you need to order more products. Setting up reorder levels for each item makes it easier to replenish inventory and prevent shortages. Minimum stock levels can be determined based on how quickly an item sells and how long it takes to get it back from your supplier. Uzapoint sends you alerts when inventory reaches reorder levels. This way your business will never face the risk of under-stocking and your most popular items will always be in stock.

With Uzapoint POS software you can adopt each of these practices into your business and improve how you manage your inventory.