4 Ways to Better Organize Inventory Management

Streamline Your Operations: Enhance Inventory Management with These 4 Proven Strategies

last updated Wednesday, July 17, 2024
#Inventory Management #financial stability

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John Burson

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We've been focusing quite a bit on the importance of financial stability for small businesses. You can do plenty of things to ensure your company is financially stable (what a great feeling, right?). One of them is ensuring your inventory is managed correctly. Shoddy inventory practices leave business owners wide open to many costly scenarios, from not having what their customers want when they want it to inventory that walks right out the door.

Here are four ways to organize inventory management at your company. Start implementing these tips, and you'll notice a difference.

1. Know MRO versus other inventory.
   In many companies, the inventory you use for maintenance, repair, and operations (MRO) is scattered around. These items aren't considered part of the products sold to your clients. MRO inventory is hardly inventoried in many companies, while "real" products and profit-oriented supplies are kept ship-shaped. Start putting the same priority on MRO inventory as your other products and parts.
2. Keep MRO items in a central location.
   Keeping the MRO inventory in one place makes inventory management much easier. It also lessens the chances of employees ordering repeats or stalling on a particular project because they think you don't have a part that you do.
3. Take advantage of vendors.
   Because inventory management is vital to a business's bottom line, many vendors have leveraged this pain point to enhance their services. Speak with your current vendors and/or search for others who do product inventory and ordering for you. You get invoiced monthly, quarterly, or whatever period that makes sense; parts and products are stocked and organized as needed, and employees can always find what they need.
4. Implement education and technology.
   Keep your employees educated on the science and practice behind good inventory management and the technology and software programs to help your company do so—check in with organizations like APICS and ISM.

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