Inventory shortages happen to the best of business owners. You think you have enough of an item on hand but learn too late you’re out of stock, and customers are waiting. Striking the exact right balance of just enough stock without having too much takes practice and planning.
There are many ways to end up with an inventory shortage. Because so many events can cause a shortage, it’s best to take a holistic approach to avoid them.
Read on to learn how to maintain accurate inventory so your customers can get what they need.
Perform regular physical counts
Because an inventory shortage can happen at any time, it’s essential to keep up with your inventory cycle counts and ensure you actually have the quantity your computer says you have. If there is a discrepancy, a regular count allows you to pinpoint when an error occurred and take corrective action.
Physically counting what you have is also an opportunity to identify shortages before they become a problem. If you correct the issue before a customer comes looking for the item, you avoid their disappointment–and prevent future problems.
Keep a tidy stockroom or warehouse
One of the easiest ways to avoid an inventory shortage is to be organised. You may not have an actual shortage at all. The item may not be where you thought it was, or it may be hidden behind something else.
Keep all similar or related items together and have an easy method of locating them, such as alphabetically, by popularity, or by season. Make sure all boxes or shelves are labeled so anyone putting stock away knows where it should go.
Use inventory software
Technology is your friend when it comes to managing your inventory. Software enables you to track inventory from the time you order it to the time it leaves your store. It can even let you know when it’s time for you to reorder certain items, so you don’t find yourself out of stock while customers are waiting.
Your inventory management team in Sydney can help you set up inventory software that makes managing your stock levels much more accurate and efficient.
Verify shipments as they come in
Take this simple step to avoid inventory shortages before they have a chance to affect your stock levels. Sometimes, the error takes place when your items are shipped. Don’t take on someone else’s inventory mistake if you don’t have to!
As shipments arrive, compare what’s physically present with what’s on the purchase order. Then, stay in contact with your cloud-based inventory management team in Sydney to remedy any discrepancies. That way, you’re not taking on a shortage that occurred before the shipment even arrived at your store.
Train staff thoroughly
Trained staff is another vital factor in preventing inventory shortages. The people who count, handle, and manage your physical inventory should all be trained in watching for issues. Employees can’t take corrective action if they don’t know that something has gone wrong in the first place.
Make sure everyone is comfortable using your product inventory system. Offer refreshers regularly and any time that the software is updated. Have formal inventory management processes and procedures that are well defined, and that everyone understands.
Have a robust anti-theft strategy
It’s unfortunate, but one of the most common ways to end up with an inventory shortage is by somebody simply taking something without paying. Your inventory system doesn’t have a chance to catch the error because no transaction took place.
Greet your customers, keep an eye on sales floor activity, and put high-theft items in harder-to-access locations.
Final Thoughts
Unfortunately, inventory shortages are part of doing business. But, if you stay on top of your processes and follow some simple steps, you can minimise the chances of a shortage. Practice excellent customer service, physically count your items, and get help with your inventory software. Give us a call to learn more about how our inventory management system in Sydney can help you manage your inventory.