A Beginner's Guide To Inventory Management
The first question is, do you need this beginner’s guide to Inventory Management? If you’re a new business owner with plenty of stock to manage, but without an organized system, it will definitely help you to read this guide. With the right inventory management, you can seriously save on costs and make maximum profit on all your products. Read on for a beginner’s guide, featuring the basics that you need to know to get started.
To start, please answer the following: Inventory management is: (one answer only, please!)
(a) An essential business process that includes the ordering, storing, tracking, and selling of one of your business’s most valuable assets - your inventory.
(b) A distracting mess that gives nightmares of Excel spreadsheets.
(c) Way too much counting than you’re prepared to do at the moment.
(d) I actually have no idea.
If you answered anything other than (a), definitely read the rest of this Beginner’s Guide to Inventory Management and read up on our other resources - your business will thank you!
If you answered (a), congrats, you’re not a beginner anymore! But TradeGecko still has some awesome information for you! Do you know:
Let’s start with the basics
Inventory management is the organization and tracking of all your inventory from the moment it becomes a part of your assets until the moment it arrives in your customer’s hands. It includes managing inventory levels, naming stock, tracking purchase orders, reorder dates, forecasting, pricing, inventory costs, variants and organizing all aspects of one of the most important assets of your business.
Inventory management is about tracking and predicting demand and ordering inventory so that your costs are lowest and profit is the highest.
You’ve got the basics down, so what’s next?
Here are some questions you can ask about your business to get started:
- What are your main items to be ordered and what stock do I already have on hand?
- What are my units of measure of that stock and do they all have unique product numbers?
- What kind of inventory management system will I use?
- Will I go for Excel or opt for a cloud-based software?
- What are our current stock levels and when will we need more of an item?
- Which items are selling really well, and which ones are not moving very fast?
- What inventory management technique will work best for our business?
- What sort of forecasting methods will we use?
Answering these questions will help you sort out the state of your current inventory and work out what you need to do next. Once you have all these beginning steps worked out, you’re all set to start managing your inventory!