Best Practices of Inventory Management

Boundless helps you in inventory management and have collated what is called best practices in it.

With these, you can grow your business by leaps and bounds and augment gains.

1. Having an intact inventory control system is best. Two commonly used systems are periodic and perpetual.  Periodic are the ones, which refurbishes ledger periodically i.e. weekly, monthly and quarterly. Perpetual systems are the ones, which updates inventory after each purchase, sale and adjustment. The more frequently it is updated, the easier it is for a business to plan.

2. Have Inventory categorisation. As 80-20 rule applies majorly to inventory, it is better to set priorities straight. (80% sales come from 20% of the products).

3. Have a proper inventory adjuring system. You should know what you need, how much you need and when you need it. This saves one from unwanted circumstances such as inflated inventory costs and longer lead times.

4. Imbrute the inventory system. This standardises the process, saves time and money, increases accuracy and simplifies documentation.

5. Forecast demand as sales may vary due to vicissitude in trends, seasons etc. Thus, demand forecast can help better plan inventory requirements to maintain levels.

6. Perform physical inventory counts. A rubric to control inventory and attune it to the amounts in periodic or perpetual system on the books, physical inventory is normally done once a year normally at the end of the fiscal year. Larger businesses and those preferring periodic or seasonal inventory counts, do it more frequently.

7. Make acclimation as required for goods unsold, obsolete, stolen, damaged or for goods whose market value is lower than the cost of the good.

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