Wholesale suppliers will often face the challenge that comes with inventory control. As the company grows more successful, a greater amount of inventory must be tracked and stored.
With the success of the company, the complication of keeping everything organized follows. What’s more, inventory needs are something that proves dynamic: It changes over the course of time and demands of the company certain flexibility in association with the way inventory is managed. Many wholesale companies use practices that have proven tried and true in terms of proper inventory management and control.
Inventory control is affected by two forces: Those within the actual company itself and those outside of it. Within a business, sales, procurement, and manufacturing all influence necessary inventory measures. External forces, such as supply and demand, the state of the economy, and seasonal trends all play a role in the immediate demand for specific inventory.
1. Inventory Categorization & ABC Analysis
The business terminology ABC analysis is a reference to a method of categorizing a company’s inventory. This type of analysis is sometimes referred to as Selective Inventory Control. The process involves rigid control of inventory, including tracking and keeping extremely accurate documents in relation to such inventory. This type of inventory control will allow a wholesale company to sort inventory based on value and it allows the company to simultaneously optimize the use of storage space for inventory. ABC Analysis is a system supported by several platforms as well, including Quickbooks, Microsoft Dynamics, and SAP.
2. Different Management Paradigms
Wholesale companies can benefit from using more than a single method for inventory control and ordering. A company has no obligation, legal or otherwise, to maintain a produce within a storage location or warehouse. Vendor managed products might be another alternative where the vendor retains information on data related to inventory and product amounts so an adequate supply can be ensured by the vendor.
3. Inventory Control Plan
To control inventory, a company needs an effective plan. The control plan needs to involve many different aspects of the business, including merchandising, ecommerce, catalog, and marketing. The unified attentions from different aspects or departments of the business will ensure that all bases are covered in terms of inventory control, marketing, promotions, and sales.
4. Assess and Understand Product Demand
Inventory control and product counts are really a science: One requiring regular study. A wholesale company needs to assess seasonal trends, consumer demand, business trends, and the state of the economy in relation to how it influences the demand for product. Demand is something that has to be predicted and it something that should be assessed by the both the sales and management departments.
5. Inventory Processes & Automation
Counting inventory can prove cumbersome and costly. If you have to pay labor costs to have someone constantly count and track inventory, it can really affect the bottom line. To minimize costs, the automation of inventory count and ordering can save a company thousands of dollars each year. A barcode inventory tracking system allows a system to automatically order an item to replace the item being sold: This makes tracking and ordering a breeze.