{"id":15380,"date":"2024-01-31T07:45:43","date_gmt":"2024-01-31T15:45:43","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dcl-v3\/?p=15380"},"modified":"2024-01-31T07:45:43","modified_gmt":"2024-01-31T15:45:43","slug":"managing-year-end-inventory","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/inventory\/managing-year-end-inventory\/","title":{"rendered":"Best Practices for Managing Year-End inventory"},"content":{"rendered":"

So often ecommerce brands have the primary objective of selling, but with a sales-only mindset, <\/span>inventory management<\/span><\/a> will take a back seat and it can be detrimental to your overall business growth.\u00a0<\/span>\u00a0<\/span><\/p>\n

Performing a physical inventory count after <\/span>your busiest sales season<\/span><\/a> will tell you a lot about your brand. What you have in stock (or not in stock) will give you the clues to make your next moves as a business\u2014whether that\u2019s evaluating your supplier, choosing to iterate and create new products, or expanding your <\/span>sales channels to new markets<\/span><\/a>.\u00a0<\/span>\u00a0<\/span><\/p>\n

No brand should make any business decisions until they can see exactly what they have in stock. Here are the steps to follow to manage your year-end inventory and finally close your books from last year.\u00a0<\/span>\u00a0<\/span><\/p>\n

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Conduct a Physical Inventory Count<\/span><\/i>\u00a0<\/span><\/p>\n

At least once per year ecommerce brands should take the time to count all units they have in stock. This is called a <\/span>physical inventory count<\/span><\/a>. This is the first and most critical step to managing your year-end inventory.\u00a0<\/span>\u00a0<\/span><\/p>\n

Only after you\u2019ve fully identified and evaluated your inventory can you make informed decisions and strategize for product iteration, sales, and promotions.<\/span>\u00a0<\/span><\/p>\n

There are two outcomes you\u2019ll need from a physical inventory count:\u00a0<\/span>\u00a0<\/span><\/p>\n

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  1. Sync what you have in your physical inventory with what is reflected in your WMS system and online sales channels.\u00a0<\/span>\u00a0<\/span><\/li>\n<\/ol>\n
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    1. Identify and investigate any discrepancies and make necessary adjustments.<\/span>\u00a0<\/span><\/li>\n<\/ol>\n

      Once you\u2019ve completed a thorough assessment of your year-end inventory, the following steps will guide you through best practices for Q1 <\/span>inventory management<\/span><\/a>. Remember that the specific steps may vary based on the nature of your business, industry, and the type of inventory you manage. It’s also crucial to involve key stakeholders, including finance, operations, and procurement teams, in the inventory process for a comprehensive and accurate assessment.<\/span>\u00a0<\/span><\/p>\n

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      1. 1. Review and Update Documentation<\/span><\/i><\/li>\n<\/ol>\n