Stock control is essential to the success of a business. Mistakes made when ordering in supplies can be costly. Below are just a few examples of mistakes that business owners commonly make when ordering stock and how to prevent these mistakes.
Ordering too much
Ordering too much stock can lead to wastage. This is particularly the case with supplies that have an expiry date. While it’s sometimes possible to sell excess tools to other companies and encourage sales of excess inventory through promotions, the best solution is to avoid ordering too many supplies in the first place by tracking demand. If products aren’t selling well or you are approaching a quiet period, you should reduce your inventory accordingly. This post offers more information on how to avoid overstocking.
Ordering too little
You can also make the mistake of ordering too few supplies. This could lead to delays with projects due to lack of materials and tools, or loss of potential customers due to out-of-stock in-demand products. With many cleaning products like dry wipes and disinfectants, it could meanwhile result in an ability to keep on top of cleaning, leading to complaints. As with ordering too much stock, this all comes down to supply forecasting. If you’ve noticed a product has become more popular or you’re approaching a busy period, make sure to increase supplies so that you’re prepared.
Ordering too late
If you need supplies by a deadline, it’s important that you order early enough so that they arrive on time. Late ordering of supplies can be particularly damaging to your reputation if clients have ordered products for a certain date or planned a project/event for a certain date – if these supplies don’t arrive on time, it could ruin the whole day. It is possible to cancel orders that won’t arrive on time and look for emergency options in some cases, but it’s better to plan ahead and order supplies in good time.
Ordering too early
There are cases where ordering supplies to arrive too early can also be a problem – for example, ordering food with a short expiry date too early before a catering event, or ordering construction supplies before you’ve had time to arrange storage for them. In these cases, it’s not a case of placing an order too early, but scheduling the arrival date too early. Don’t schedule orders for the earliest time possible unless you need them in the near future.
Not shopping around
One of the most common mistakes businesses make when ordering supplies is failing to shop around. While you can sometimes get loyalty discounts for sticking with the same supplier year after year, it’s important to occasionally shop around to see what prices other suppliers are doing to make sure you’re still getting a good deal. Specialist supplies may need to come from a specialist supplier, but general supplies like trash bags and paper can be procured from all kinds of places.
