Forty-five percent of businesses have limited supply chain visibility. A major component of your supply chain management is how you plan your inventory.
If you don’t understand your inventory, you can’t decide what products to order and when. If you’re not sure how much of a product is in stock, you may order too much or too little.
And if you don’t know what products are selling well, you cannot restock them in time. So how do you create an inventory plan? Here are several tips to get you started.
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Analyze Your Sales History
Your past sales are a great place to start when inventory planning. If you have a point-of-sale system, use it to generate reports on what products sold well and which ones didn’t. Look at your sales data by month, quarter, or year to see if any trends emerge.
If you don’t have a point-of-sale system, you can still use your sales history to create an inventory plan. Look at your receipts and invoices. Then, use this information to determine how much of each product to order in the future.
Set Target Inventory Levels
Once you have a good idea of what products to order, it’s time to set target inventory levels. These are the amounts of each product that you want on hand at any time.
Set these levels based on your inventory data or by using industry benchmarks.
For example, if most retailers in your area carry 30 days’ worth of inventory, then that’s probably a good place to start. This will help you prevent oversupply and undersupply.
Conduct Regular Counts
Conducting regular counts will help you determine if the products are selling as expected. It will also tell you if any adjustments need to be made.
You can do this manually or with an automated system like a barcode scanner.
If you’re doing it manually, count all of your products at least once a month. If you’re using an automated system, set up a schedule for when the counts should take place.
Set Key Performance Indicators (KPIs)
KPIs are a way to measure the success of your business. They can help you identify inventory control problems and fix them right away.
For example, if you have a high number of returns or damaged products, it may be because there’s something wrong with how you’re storing them. Use KPIs to track these issues and make changes as needed.
Implement an Inventory Management System
An inventory management system is a software program that helps you keep track of your products. It can help you identify when items are running low and when they need to be reordered.
You can also use it to track sales, returns, and damaged goods.
There are many types of inventory management systems available. Make sure you choose one that fits your needs. Or use an Agnostic ERP selection consultant to help you.
Inventory Plan: A Key Factor in Successful Business Operations
A good inventory plan helps you manage your inventory more effectively. This can lead to increased sales and profits. By considering these factors, you can create a plan that will help your business succeed.
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