Inventory management is an indispensable component of supply chain management. It involves ordering inventory, controlling and storing inventory, and managing the amount of products available for sale and delivery. At its heart, inventory management is straightforward, requiring an ideal balance of product availability, cost, location, and amount. But in reality, inventory management can be tricky. Many managers decide to simplify matters by using the computerized inventory management system available at cutting-edge distribution centers.
How do I know how much inventory is enough?
It’s common for business owners to decide when to reorder inventory based on sales figures from the previous month. If you use this approach, you’ll need a way to precisely track your sales figures from month to month. You should also consider seasonal fluctuations in sales. Depending on the type of inventory, you might sell more of a product in the summer compared to the winter, or vice versa.
Should I eliminate products that aren’t selling well?
It’s only natural for business owners to consider dropping a product line that isn’t selling well in order to focus on more profitable products. However, the decision isn’t always cut-and-dry. Before deciding whether to eliminate a product from your inventory entirely, consider whether it fuels secondary sales. In other words, do customers who make one-time purchases of Product A also tend to make repeat purchases of Product B, which is related to Product A? If so, it might be worth it to keep offering Product A in order to maximize sales on Product B.
Where should I store my inventory?
It usually makes sense for business owners to store their inventory at off-site locations. This is particularly beneficial for businesses that primarily conduct transactions online. Look for a distribution center that also offers delivery capabilities, which allows you to easily ship products directly from the distribution center to the customer.
Xcel Delivery Services makes inventory management easy at our distribution center in Tucson. Use our computer inventory system to quickly assess the real-time status of your inventory, and meet your customer demands with our competitive delivery services. You can call our location in Tucson at (520) 355-4897.
