Stock management is another area of supply chain management that goes hand in hand with it. To function properly, businesses need to ensure that stock management is done properly.
Businesses like Transmed that work in the FMCG industry, in particular, have to be very meticulous in their stock management. The interesting thing here is that even if you’re offering a product on a small scale, you still need to manage your stock wisely.
This is why the following tips will be very useful to you:
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1.Stock According to the Forecast
Always make sure that you know the forecast of the market when you are stocking your inventory. This means that you should be prepared for the following scenarios:
- Increase in product demand
- Shortage of product supplies
- Market trends that cause products to become viral
- Promotions or discounts being offered
- Holidays like Christmas, Black Friday or more
This allows you to increase your stock as needed so that you’re not faced with a shortage in the middle of these scenarios.
2.First In, First Out
Always make sure to stock inventory by the rule of First in, First Out – FIFO. This ensures that products, particularly perishable goods are not left on the shelves for too long.
It creates a natural, rotational flow of goods in your inventory so that no product goes bad or incurs a loss for the company in this manner. You will have to be very vigilant about dates, order shipments and arrivals due to this but it will pay off for you.
3.Always Run an Audit
Whether it is done on a monthly basis, quarterly or yearly basis, always run an audit on available stock in your inventory. Mistakes can happen which can mean that you either have too little or too much of a particular product.
Another reason to have audits is to prevent theft of good from the inventory. Lost, stolen or misplaced goods can cause a loss for the business. Even if it is one package per month, if you look at it on an annual basis, it could be 12 packages which is a serious loss to the business.
4.Note Down Performance of Stock
When you are running an audit or just monitoring your stock, not down the performance of the items in your inventory. This should be done on a 6 month or annual basis because it can be difficult to know product performance in a short period of time.
If you have two to three months worth of supplies in your inventory, it might be a good idea to consider letting that stock go and avoid reordering it. Host a sale or offer it on discounted prices. Additionally, take a closer look at the marketing being done. In some cases, poor promotions can also impact the performance of the product.
With the help of these tips and your own inventory practices, you can make sure that you don’t face any issues and are able to boost your stock change management practices with ease.