Tips for taking control of stock management

Managing stock is not an easy task for small business owners. Trends come and go, and you've probably had a whole bunch of products in a certain color or size that you've had to clear out because they simply weren't being used. But it's also common for companies to lose track of their stock because their inventory can't quite keep up. However, there are ways to overcome this and get the most out of your stock and therefore your investment in your business.

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Create a procedure for the inventory

Inventory costs money for your business and is a major investment. So it's a shame if you don't get the most out of what you've bought because of the inventory. Taking stock means creating a record of the goods in your company's warehouse. The most common practice is to take stock once a year and if you have a warehouse or inventory system, each item only needs to be inventoried once. If you have a smaller stock, it is easier to keep track of the products and it is important to do so because you can adjust what you order to what you already have. For example, if you notice that certain items aren't being used as quickly, you won't need to order as much of them next time.

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Keep track of trends

An important part when it comes to inventory is to try to avoid tying up too much money in it because the risk of buying things that don't sell is that you have to sell them out later, or in the worst case, don't get them sold at all. By keeping an eye on the different trends in your market, you can reduce this risk as you can control what you order based on what is likely to sell the most.

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Ask customers what they want

Another tactic to avoid filling your warehouse with unnecessary products is to ask your customers what they want. You can do this in a few different ways. If you have a physical store, you can ask customers at the checkout. This is an effective way to gauge demand. If you have an online shop, you can choose to ask the question at some point in the checkout process on the website, or you can email the customer afterwards.

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Look back and learn from it

You can also learn from your own history. If you look back at orders and purchases, you can quickly see different patterns. For example, many products are seasonal, meaning they are used more or less during different seasons. You'll know if you need to stock up on something for winter and when you can reduce your order.