what are Inventory management techniques and stock control methods

When you think about a successful inventory management business are there some questions that are mysterious in your mind? What do they do more (extra) than others? Why are they at the top of the list? Other businesses also invest large sums, so why not reach the heights of success?

Do you have similar questions? Let us explain the real reason for their success and also give you the techniques and methods for a successful business.

It doesn't matter what kind of business a company does. Then whether they are serving their customers online or offering a physical outlet. Businesses constantly have products in their stock. They follow trends and fashion to gain their place in the market. Customers always find products following their demands and requirements. Businesses can never deny their customers. It's all good game of inventory management, it's a tough nut to break but we offer you the best techniques and methods to handle it. Let's move on to the main topic.

Also read: what are Inventory management techniques and stock control methods

Each company has different types of inventory according to the type of business. Some of the techniques are mentioned below. For best results you can choose the right one to use for your warehouse. Trust me, with the right decision you can get the most bang for your buck.

Quantity of economic order

It is the cheapest quantity of stock that should be ordered to reduce storage and ingering costs. This formula helps to meet the demands of the customer through economic inventory. It is one of the oldest methods of inventory management. This method has been adopted by those manufacturing companies who do not want to build up their cash in the form of inventory. They use the economical order quantity model to create the lowest number of units at low cost.

Minimum order quantity

The minimum order quantity known as MOQ is a stock technique that is mostly used by businesses of a trading nature. They calculate the minimum quantity that they must sell. They must have this volume to continue its process. Suppliers calculate it to eliminate storage costs and increase business profits.

Dr ro shopping

Dropper pushing is a low cost method for handling inventory management. This method does not require handling and spending a huge amount on the warehouse. The easiest way is to order products according to customer demand and deliver them directly to customers. It saves from the hassle of storehouse and other expenses. The drawback of this method is that it is not suitable for every business.

Only in time inventory management

Just time or JIT is another amazing and popular technique to reduce the storage cost of inventory. JIT inventory was ordered only at the time of need or before delivery to customers. This method eliminates the risk of dead stock and reduces storage costs. Many businesses adopt these techniques to improve their cash flow.

Bulk shipping

In the bulk shipping process, products are ordered in large quantities. Usually, a large container or container is used for the shipment of products. This method is suitable for large manufacturing industries. These companies used this method because they needed chemicals, milk, wood and raw materials for mass production.

Order point formula

Every business faces the question of when to place an order for a smooth flow of business buying and selling cycles. This formula gives you approximate units of products. At that level, you are ordered to avoid any frustrating situations. Naturally, this point is higher than the safety stock. In this order, you have to be very careful as early placement orders can generate more costs due to the addition of storage costs. On the other hand, if you are late in placing an order, your customer will move on due to the availability of products.

Safe stock

How can you handle emergency demand? How can the business handle if the delivery of products is delayed for any reason? To deal with this situation, the business has a specialized safety stock to meet the needs and desires of the customer. Fluctuations in supply and demand are common in the market. It saves the business from a checkout situation. Every business adopts this method to retain customers.

Deadstock

Deadstock refers to that part of the stock that is never used or present to customers. It always causes damage to the company. This situation is difficult to handle. First of all, it is necessary to know which part of the stock is in the category of dead stock. Then plan a good strategy to get rid of this. For example, you can combine it with other products, and donate. If this stock is a raw material you can also contact the supplier to return it.

Inventory Foresting

Inventory Here is the most useful method for controlling inventory management which is inventory forecasting. Inventory forecasts are based on the actual sales record of the business. In this forecast report