Use Efficient Inventory Management Software: 

Many software options can help digitize your inventory so that you can effectively track, forecast demand, and analyze the status of your inventory from all types of devices. 

An efficient inventory management tool comes with several features to let you control your warehouse and unify multichannel sales. It also integrates work with barcodes, as well as serial numbers, expiration dates, sizes, and colors, etc. 

Identify Low Turnover Items: 



Identify your items and products with low turnover and, above all, those that you have not sold in the last 6-12 months. If you find products of this type in your inventory, you will most likely have to consider stopping restocking them. Keep in mind that the speed of sale of some types of items can vary greatly depending on the time of year (Halloween costumes in October, swimsuits, and shorts in spring and summer ...), so evaluate what you should keep in stock and what to avoid. 

When you have already identified those items and products whose sales speed is always low regardless of the season, decide if you want to stop restocking them. 

Be creative in how you dispose of what is left of that product. For example, you can create a special discount or promotion to remove that product from the shelves. 

This is of great help for your business since excess stock takes up time, space, and money. 

Apply the FIFO Approach: 

The acronym FIFO stands for" First in, First out ". It means the first thing in, the first thing out. In the realm of inventory management, it means that you should sell your products in the chronological order in which you bought or created them. So what comes in first must go first. 

This rule is useful for all types of companies and products, but it is especially designed for perishable goods such as plants, makeup, food, or other organic items. A good way to start using this approach is to organize your warehouse accordingly: that is, older products should be brought to the front and newer products should be in the back. 

In this way, you will ensure that the first article to enter is always the first to leave. 

Track Your Stock Levels: 

Again, this is a task that you entrust to your inventory management software, and it is a task of the utmost importance. You need a good management system to help you keep track of stock levels to know what to stop restocking, what to ship first, and what has arrived new at your warehouse. 

Audit Your Inventory: 

To ensure that your information is completely up to date, do not rely solely on your warehouse management software just as you would not rely solely on yourself. 

Even with the best software on the market, you should carry out periodic counts to make sure the numbers fit and match. Although they are less common than in humans, errors also exist in computer systems, so carrying out that double-check may not be a bad idea. 

Counting your inventory regularly is a good way to double-check that your warehouse is as it should be. There are several ways to carry out such an audit (for example, at the end of the year). Do it as it suits you, but make sure to conduct it. 

The Bottom Line: 

The method you use to manage your inventory will depend on the characteristics and the requirements of your company. But if there is something that does not change, it is important of managing and controlling inventory correctly, since it is a vital aspect for the survival of your business. 

If you do not have rigorous inventory management, you will never have absolute control of the future of your company. The market is competitive and too much or too little inventory can be your downfall.