5 Practical Ways Businesses Can Reduce Inventory Costs

Inventory is one of the biggest elements in manufacturing and retail businesses. Inventory costs include things such as procurement, owning and maintaining the warehouse, insurance, technological investments such as industrial scales, and operational costs. This week, we will discuss the different ways you can cut back on inventory costs without compromising the efficiency of the business!

Stock check

Counting the inventory that already exists can help you determine what items sell fast and what doesn’t. If there are any items left over that you no longer sell, replace them with merchandise that brings in the most sales. You can use things such as floor scales to help to manage inventory. If you deal with several small elements, counting them manually can be extremely tedious and draining. Implementing a reliable scale system will enable you to quickly and accurately count by using the weight of each element.

Dispose of unnecessary inventory

Once you identify the excess items in your inventory, it’s time to say goodbye. You don’t need to simply throw them away, of course. Here are some things you could do to give yourself more inventory space:

• Offer a promotional sale for the excess inventory
• If possible, donate it to charity
• As a last resort, dispose of the excess inventory appropriately

Buy only what you need

Stock management involves the importance of ordering exactly what you need. Check the existing inventory before you invest in too many products. This means you shouldn’t fall victim to unnecessary bulk purchases. Instead, look for the best available deals with that match up with your required quantity.

The optimal order management process

The order management process helps in tracking the orders and keeping relevant data about the customers well-organised. Optimising this process can help determine the exact stock quantity that is needed to meet the demands of the customers. You can even partner with suppliers who can deliver the inventory based on what you need. This will help keep inventory under control and dial back the shelf life of your warehouse inventory.

Stay organised

Having an organised warehouse will help you keep the inventory sorted efficiently. It also ensures you can locate the inventory quickly. Without an organised warehouse, you will find your time wasted in finding everything you need. One way to optimise the layout of your warehouse is to make sure the fastest selling items are at the front and within easy reach.

Invest in the right storage

If you don’t have the right storage for your inventory, you should expect to see extended time in finding everything you need and putting things away. At Monarch Shelving Ltd, we offer a wide range of new and second-hand warehouse storage options that meet a wide range of business needs. To find out more about our services, get in touch.