Best Practices: Recommendations To Improve Your Inventory Control

Here are recommendations online selling ideas for you to improve your inventory control:

1. Plan Purchases By Forecasting Demand

Demand forecasting is an essential point for optimizing inventory control strategies. By predicting the exact amount of products and services you will need each period, you will ensure a leaner purchase, making the merchandise turn faster and freeing up essential spaces in the stock. Better than that. You will ensure that the right products and services are not lacking when they are most in demand. So, then, increasing the sales volume. To analyze the history of goods issues by crossing the volume information with the period for this to happen. That way, you find out the seasonal period of each one. And so, you will be able to project future demands, plan better purchases, negotiate discounts and delivery costs, and eliminate the risks of receiving late products.

2. Consider Delivery Times In Planning

Many managers do not consider the actual deadlines they must receive purchases after ordering. And they end up blaming the suppliers for not paying enough attention to them. This means a lack of purchasing planning and not considering the delivery time causes orders to be placed at the last minute. This makes it impossible for them to be met by suppliers, who also have their delivery methods and standards. You can even switch providers to a closer or faster one, but the problem will continue. That’s because he will also have his deadline to deliver the orders.

The delivery period must be counted from the moment you place the order (close the purchase deal with the supplier) until you receive it in your stock. So, research with suppliers the real deadlines, with room for delays. In some cases, it is possible to trade a shorter term, but it will depend on the volume and frequency of purchase.

3. Choose The Suppliers That Best Serve You

The supplier should not be chosen only for sales prices but also for the quality of products and services offered, delivery times, payment terms, relationships, etc. There are many factors to consider, and each one has its due importance for the business. So, take a closer look at them. List each supplier vertically with attributes horizontally. Give weight to each attribute (grade, points, etc.). For example, if you consider delivery time more important, give a score higher than that factor to the supplier that delivers the fastest. A good relationship and a good negotiation of delivery times with your suppliers can be a great differentiator for your company. Prompt delivery can make your company have a specific product before your competitors.

Now, research this information with suppliers, scoring each factor according to its weight for your business. Add the scores and find out which are the best suppliers for your company. Remember that this survey should be done periodically.

4. Pay Attention To The Result Indicators

Keeping a consistent and rigorous record of all product movements is essential. This makes it possible to identify which ones have a greater demand in the market and which ones do not obtain the expected return. This control of most and least sold products is the ABC of sales by-products. This is essential for your company to focus on buying products that are needed for stock and reducing unnecessary costs 

Another important indicator for efficient stock control is what we call stock coverage. It serves to point out if your stock is sufficient or not to meet the purchase averages according to the record of all the outputs of your products. To calculate inventory coverage, you need to cross-reference the number of products in your inventory with your average sales forecast. Learn more on