Inventory management starts with a defined process, but inventory management software tools also help. It mainly involves ordering, stocking, and using business materials or products. Different inventories include raw materials, cycle inventory, and MRO goods. Prioritizing your list helps you understand what you need to order or manufacture more frequently to fulfill your customer’s needs.

For your business to be profitable, you need an Inventory management system that will help maximize the profits. Some small businesses may have too little inventory; therefore, they cannot meet customers’ expectations by supplying enough products. This will eventually drive customers away to other suppliers.

On the other hand, many businesses go the other way; they overstock items. Customers will always have the products they are looking for; the risk with the strategy is bleeding money from your business. Excess inventory ties up valuable cash flow and costs more to store and track. Hence, effective management lies between the two extremes. It helps you to sort your stock so you know which items fall into the same category and manage them accordingly. For example, you will handle raw materials differently from finished products.

For a small business to have effective management software programs, they must depend on various factors, e.g., the budget, your business type, and features you are looking for, like mobile apps and cloud backup.

Katpen INV has prepared some essential tips to help you effectively manage your inventory to increase your profitability and cash flow management.

1.     Prioritize your inventory

Categorize your inventory into priority groups to understand the items you need to order more. At Katpen INV, we provide software that ensures that products’ current units are recorded, transferred, and adjusted according to the system.

2.     Track all product information. 

At Katpen INV, we provide you with software that will keep records of product information. The data includes all the barcodes, supplier details, country of origin, etc.

3.     Be consistent in how you receive stock and track sales.

Our software at Katpen INV ensures that the stock received is verified, counted, and accuracy checked. Any stock sold is also recorded in terms of the time and date sold. This helps in tracking the inflow and outflow of stock.

There are many more effective ways of effectively managing your inventory. 

Contact us or visit our website to learn more about our Inventory management software.

*Katpen INV is one of the products of KatPen Innotech Solutions