Startup: How to Avoid Inventory Management Mistakes

Proshare

Wednesday, November 13, 2019 10:00AM / Sponsored Post / Pete McAllister / Header Image Credit: Royex Technologies

 

For startups, cash flow is crucial, and poor inventory management can lead to wasted resources. On average, about 20 to 30 percent of a company's operational budget is spent on inventory management. This is a high sum, and many companies could save up to 35 percent of these costs by rectifying some mistakes and having a more practical approach to inventory management. Here are some common inventory mistakes many startups make and how to avoid them.

 

1.     Not automating your system

Manually tracking your stock can be quite tedious, and mistakes are bound to happen. Even the most proficient data entry operator makes mistakes, and this can cause headaches if your stock includes a lot of products. An automated inventory-management system saves you a lot of time and money. These systems can allow multiple users to access them simultaneously and track items across various locations while monitoring any orders or shipments for those orders.


You can also get real-time data on how your company is doing, know what's in stock or what is flying off the shelves. With this information, you know what your customers want. If you need financing to add your stock, you can visit Opportunity Business Loans to get matched with lenders who can give you the right funding for your needs.

 

2.    Not organizing your storage

A lot of time goes to waste when employees have to maneuver obstacles in your stores or warehouse to get at products. Having a physical storage system that is well organized is important to improve efficiency. Place frequently needed items closer to the exits and at a convenient height so that your employees don't need to bend or reach up to access them. Have a consistent system of well-labeled items that are organized by section, row, shelf, or rack.

 

3.    Not having an inventory system in place

If you lack an inventory management system in place, you can't track what goes in or out. Lacking a proper inventory system can set your company up for issues such as product shortages, delays in shipping, storage congestion, customer dissatisfaction, pricing mix-ups, and cash flow issues. By including this system from the beginning, you can save yourself a lot of stress and ensure your business is running optimally.

 

4.    Hire qualified personnel

Even with a proper inventory management system in place, you still need skilled workers to run it. You need to have workers you can trust to do a good job. As you try to implement a better inventory-control system, ensure that you hire the right people with a solid background in inventory. Employ inventory managers to ensure everything is running smoothly and hold them accountable in case anything goes wrong. If you are getting a new inventory management system, take advantage of the free training offered by many vendors. The training is customized for your company, and this way, everyone learns the best practices from the get-go.

 

Inventory is a fundamental component of any business because the sale of these products generates revenue for your company. By avoiding the mistakes mentioned above and rectifying what you have been wrong, you can get your company back on track.

 


Proshare Nigeria Pvt. Ltd.


Related News 

1.      How To Build Big Things With A Small Team

2.     Why You Should Join A Regulated Startup

3.     2018: The Year Privacy-Focused Startups Took Off

4.     AI for Credit Scoring - An Overview of Startups and Innovation

5.     5 Low-Investment Business Ideas

6.     Reworking Youth Entrepreneurship in Nigeria To Drive Growth

7.     Here Is How A Mobile Punch Dashboard Can Help You Track Your Employees' Overtime

8.     Liquidation Preference: Your Start Up Equity Could Be Worth Millions-Or Nothing

9.     World's First Shared Trading Platform, Exchain, Launches Public Beta Test

10.  TaxiTV Raises Seed Fund From Beta.Ventures

11.   Greentree Investment Company Targets Funding Of Promising Nigerian Startups

12.  PwC unveil Partnership to Boost Insurtech start-ups

13.  Dubai International Financial Centre's FinTech Ecosystem Gains Further Momentum In 2018

 


Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP