Every business is only as good as its stock. You may have phenomenal marketing and customer service, but if you run out of product and fail to fulfil orders, you’ll quickly lose your customers.
Stock management is an art, and it’s one you’ll need to master if you hope to have success. In this article, we discuss the most important considerations for managing your stock, including effective inventory management, suitable stock storage and stockroom organisation.
Inventory management for business stock
An effective stock management system helps you acquire the right quantity of stock at the right time. Do this effectively and your business will maximise sales while reducing the costs of carrying excess stock.
If you accumulate far more stock than is being sold, you’ll need to find a large storage area to hold it all until the products can be shifted. In some cases, you may need to sell the stock at a reduced price, possibly even at a loss.
Alternatively, if you don’t possess enough stock to fulfil your orders, you’ll lose out on valuable sales and may tarnish your reputation.
Inventory management techniques
Keep on top of your business inventory with the following inventory management techniques:
Analyse
Use inventory management software to track your inventory and forecast changes to your supply chain or sales. Use analytics to assess which items are selling best and whether there has been a sharp increase or decrease in sales. Adjust your quantity of stock accordingly.
First in, first out
Your goods should be sold in chronological order from when they were first created. This is especially important for goods that have expiration dates. You should organise your stock so that each new item that enters your possession is located to the back of the stockroom.
Remember ABC
A popular technique for managing inventory is to categorise each of your products by how profitable or popular they are. ‘A’ products are most profitable, ‘B’ products are the second most profitable, and ‘C’ products are less important items. The ABC technique helps you to balance the amount of each product in your stockroom. More A products will be required than B and C products, so it’s important to have a ratio of stock that reflects this.
How to store business stock
Once you’ve acquired your stock, you’ll need a suitable place to store it. We recommend using a storage company that specifically offers business stock storage. Most of these facilities will offer spaces in a range of sizes, so you can upgrade or downgrade as you need to without having to transfer to a different facility.
How to organise your business stock
Organising your stockroom effectively can make dispatches more efficient and help you keep track of your items. It can also reduce the risk of item damage. Learn how to organise a stockroom below.
Utilise vertical space
You want to use all the available vertical space to store your stock so that floor space is kept free for manoeuvring. Keep the heaviest items nearest to the ground and the lightest items at the top. That way, items that do fall from a significant height will do the least amount of damage.
Place your most popular items at the front
Your A items should be nearer the front as they will be the items most regularly collected. This will save time, as staff can quickly grab popular items rather than having to manoeuvre to the back of the stockroom.
Label your business stock
Label your items so that they are easily identifiable. Not only will this make it easier and quicker to find items, but it will also minimise the risk of dispatching the wrong item.
Find a storage facility with cutting-edge security amenities
Ensure your stock is safe and secure by storing it in a trusted facility. Check for features such as 24/7 CCTV and a range of alarms.
Put your stock in the hands of someone you can trust. Vanguard has over 55 years of experience as a storage provider. We’ve become one of the leading names in the industry, thanks to our dedication to security, safety and service. We offer commercial storage units in a range of sizes, perfect for large and small businesses alike. Our facilities include 24/7 CCTV, burglar alarms and fire alarms, ensuring your stock is protected at all times.
Find your local branch in London, Manchester or Bristol. Contact us today to reserve your unit.