Inventory management is an integral part of running any kind of business – but for a small business, the burden becomes necessary. Knowing what product you have, and what product you need restocking is vital to let your business flourish in any industry.

Fortunately, we have a few tips and tricks up our sleeves to show how you can manage your inventory like a pro:

FIFO – First in, First out

Always follow the golden rule: first in, first out. Goods should be sold in the same chronological order as they had been purchased or created. This makes sense – neither do you want your perishable products to get damaged, nor do you want your non-perishable items to become obsolete with disuse.

The best way to avoid dusty inventory is to add new items in the back, so that older item can be brought to the front.

Keep an eye over low-turn stock

There is no need to stock an item that hasn’t been sold for the past 6 to 12 months – it’s time to throw it out.

You can, however, discard unnecessary items in creative ways – put on discounts, promotions, or lucky draws. That way, you can reign in not only sales but also new, potential customers.

Track stocks at all times

And we mean it – at all times. Prioritize expensive products, and make sure the levels stay as stable as they can. Employees can do quick checkups for any signs of damage, or count them as they are brought in and out.

You can save yourself the hassle by investing in an inventory management software like Oscar POS. It is cloud-based and adjusts your stock levels even as you make sales anywhere, anytime. You can also receive day stock alerts – so you always know which items are in low or out of stock.

 

Invest in a good inventory management software

While we’re on that topic, I might as well include all the other benefits a good inventory management system can bring:

• Prevent product and production shortages
• Prevent excess stock and raw materials
• Forecast demand
• Track inventory across several locations
• Offer quick barcode scanning to speed up an intake

Don’t put your business at risk by treating inventory management as an afterthought. Be on top of your game from the get-go, and prioritize your inventory – so that your small business flourishes into a large, successful one.