Whether you’re running a new Shopify store or this isn’t your first go, good inventory control is essential. What is inventory control? It is the process of checking and ensuring the right amount of stock is available in your warehouse at all times.
Having effective control of your inventory allows you to make maximum profits and ensure the smooth running of your business. Did you know that inventory mistakes cause almost 50%* of all markdowns* on non-food products? Which can consequently lead to a huge loss of profits. There are plenty of ways to avoid your stock being part of this number.
First, we will take you through the 2 different types of inventory management. Following this, we will give you 5 great tips for improving inventory control for your Shopify store.
2 Types of Inventory Control
Managing inventory can work in different ways. There are 2 main types and many businesses use a combination of both.
Perpetual Inventory Control
The perpetual inventory method involves tracking stock in real-time, as products are added, sold, and shipped. This is great because you get a live indication of your stock levels. This highly detailed view of what is in your warehouse can benefit any size business.
Periodic inventory control is where you physically count your stock at different times. You can plan and do this on a daily, weekly, or monthly basis.
Often, businesses will do a physical inventory count once in a financial year, instead of using this as their primary method. This is because it is time-consuming and less accurate than constant control. It is not as effective for large, high-volume businesses.
5 Inventory Control Tips
We have created for you a list of the 5 best tips on how to implement effective inventory management. Follow them to make sure your inventory is always accurate and up to date.
1. Track Sales
Tracking your sales is the top way to ensure inventory control runs smoothly. To have a visibility over your inventory, it is paramount to know what you are selling, where from, and when. Whilst some businesses opt to do this manually, this is usually only an option for smaller sellers.
EasyScan is an inventory management software that allows you to pick and pack orders. It also generates a log of every item you have sold, which you can match up to your inventory records. This is a reliable way to monitor sales and ensure that you have the necessary inventory.
You can also use it to reduce the stock of those items that don't sell well. They have been sitting in your warehouse for too long, not making you any revenue. So using EasyScan will help you know what items needs more visibility on your store to maximize your profits.
2. Be Consistent
This seems basic, but having consistency in how you manage your orders, stock, and sales is really important. Make sure everyone working in your warehouse knows the processes for re-stocking products, fulfilling orders, and shipping. Significantly reducing chances of inconsistencies or errors.
Automation drastically improves your inventory control
3. Use an Automated System
Something that can help with the first two tips is implementing a smooth automated system to control your stock. Not only great for tracking sales, EasyScan operates a perpetual inventory control using your barcodes. You will always know what items are in stock and where they are in your storage unit.
Some businesses opt not to use automation, generally, they are small businesses. Any medium to large business needs to use automated inventory control system. It is the best way to reduce mistakes and have an effective control over your stock.
4. Audit Regularly
The core of all good inventory control is regular audits of your stock. This involves checking that those products in your physical warehouse match up with your digital inventory. If not, you can determine what has gone wrong and make adjustments to your numbers accordingly.
EasyScan makes the audit process really simple. You can use your barcode scanner to account for your stock, which can be a scanner, tablet or phone. Then our app will produce a report that matches up stock levels with the inventory.
As mentioned in the previous point, this automation is a great way to save time and ensure accuracy!
5. Use Bin Locations
Finally, good organization makes for good inventory control. Using bin locations in your warehouse enables you to know where you hold your stock. It is also very important to label them clearly in order to be able to find products way quicker.
Strong organization helps with having an effective inventory control. It is the key to success when it comes to running an efficient Shopify eCommerce! And with EasyScan's inventory management system, you can be sure to be in total control of your warehouse and your stock!
By the way, we made a guide on how to assign and edit bin locations. Feel free to check it out to make things easier for you.