The cost of inventory can add up very quickly. It can leave you with very little profit and you may even find that your expenses are significantly higher than they should be. Luckily, it is possible for you to reclaim any revenue that you may have lost by following the below tips.
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Avoid Minimum Order Quantities
A minimum order quantity is the smallest amount of product a company or vendor will supply you with. An MOQ is very common and they are often used by suppliers or even manufacturers so that they can unload a significant amount of inventory onto the retailer. This is good news for them, but bad news for you as a business owner. If you want to avoid having this burden, then try and work with other businesses in the local area. They may be ordering the exact same product, so it could be possible for you to split the purchase. You might also want to pay your supplier more, for less inventory. You would have to negotiate a deal to make all of this go through, but that being said, you will probably save a significant amount in the long-run.
Know your Re-Order Point
A re-order point formula will help you to work out when you need to place an order for any future stock. The best thing about knowing your re-order point is that it ensures that you will never have too much stock at any one time.
Try and Organise Everything
An organised warehouse will help you to sort out your inventory and it will also help you to pick it up again at a later date. An unorganised warehouse on the other hand will increase your chances of having misplaced or even damaged inventory, so it is important that you keep this in mind. If you want to keep your warehouse nice and organised, then you need to try and put any fast-moving items that you have near the front. This will optimise the pick and pack process that you have. If you are having a hard time organising your warehouse, invest in easy access self storage until you are able to get things up and running properly.
Eliminate Obsolete Stock
Stock that you don’t need will just be taking up room in your warehouse. It will also cost you way more money than you think as well. If you want to get around this then you need to try product bundling, to sell it off. You might also want to discount each product individually, to try and encourage sales. If you can’t sell any of your stock at all, then donate it. You may be able to write this off your tax, and when it’s all gone, you can then make your warehouse way more efficient as a result.
Managing your warehouse is relatively easy when you know what steps you need to take, and by following the above tips, you can be sure to turn things around for your whole business.
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