Inventory-Management Tips || Tally Services

Many businesses market, sell, and distribute products on some level or another as part of their business plan. No matter how big a part this plays in your business model, proper inventory management is key to profitability. That being said, for many small businesses, inventory management is often not a top priority and falls by the wayside.

Inventory is a big asset, and if it’s mismanaged, it can really cut into profits and be a big drag on expenses. If your small business isn’t properly managing inventory, use these inventory-management tips to clean up your practices and get organized:

1. Get Organized – First and foremost, before you do anything – get your inventory organized. You should have a system that all employees are aware of and actively take part in. Your inventory shouldn’t be haphazardly placed anywhere but, rather, in identifiable locations, easy to distribute at any given point. Not only will getting your inventory organized help you see how much you have of each product, it will also make the shipping and loading side of things easier and more efficient, too. Furthermore, it will help you stay on top of ordering and building, because it will be clear when you’re nearly out of a product.
   

2. Use Inventory-Management Software – If you’re not using some kind of inventory-management software yet, it might be time to start today – especially if you have more than a handful of products. It not only will help you stay organized, a proper system also will free up more of your time and keep you from being a slave to your products. An inventory-management software system will provide you with detailed information about how your product moves and where it’s going. These analytics will be useful in helping you grow your business.
   

3. Be Mindful of Employee Fraud – When it comes to embezzlement, most business owners only consider cash and money fraud. However, one of the biggest issues small businesses face is product theft by employees. If your inventory is not properly managed, it can be hard to prove and prevent it from happening. If you suspect inventory fraud, consider surveillance technology or other measures to keep it from happening to your business.
   

4. Regular Audits – To help you stay organized and keep your management software up to date, you should perform regular inventory audits to count, organize, and manage your inventory. This will make sure your computer-based systems are accurate and help alert you to any fraud.
   

5. Track Your Sales – This is probably a no-brainer, but we’ll put it out there just in case. Track your sales and know which of your products make your business the most money. When you have a good handle on your inventory, you can make better business decisions to help your business grow and adapt to what your customers want.
   

6. Manage Your Suppliers – As you think through your inventory management, now is a good time to also check in with your suppliers to make sure you’re getting the best deal and service out there. There might be room for renegotiating and streamlining processes to make sure you’re getting the products you need, when you need them, at a price that’s fair.

Need help setting up a solid inventory management system that helps you avoid fraud and grow your business? Tally Services is here to help you find the best software system for your needs and maximize your inventory well. Contact us to learn more about how we can help!