{"id":7832,"date":"2019-10-07T18:13:13","date_gmt":"2019-10-07T18:13:13","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/amazon-fulfillment\/solve-inventory-problems\/"},"modified":"2021-04-21T12:02:50","modified_gmt":"2021-04-21T19:02:50","slug":"solve-inventory-problems","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/inventory\/solve-inventory-problems\/","title":{"rendered":"How to Solve Common Inventory Problems"},"content":{"rendered":"

Any business that stores their products in a warehouse or fulfillment center<\/a><\/span> needs some sort of inventory management system<\/a><\/span>. Without a proper strategy in place, you will likely be losing money, time, and ultimately making errors and getting customer complaints. Inventory efficiency can be a significant factor in is to drawing more customers to your product, because what we call an efficient inventory management system, the regular public calls fast and great service. If you want to have a positive brand reputation, you will need to provide exceptional service at top speeds\u2014after all, this is what customers expect. Here are eight strategies to help you solve common inventory problems to ensure better product availability, customer service, and efficiency across the board.<\/span><\/p>\n

Determine the Problem Areas<\/h2>\n

Before you begin to look at possible solutions, you must have a full understanding of what your unique inventory problems are. Begin with the idea that every aspect of your inventory system and fulfillment strategy<\/a><\/span> is a problem. Start eliminating the systems that have a viable financial reason and work from there. List all the categories of your inventory problems that signify big losses, including obsolete material, overstock, and defective material. Once you find problem areas, be sure to establish sufficient corrective action.\u00a0<\/span><\/p>\n

Invest in a Bigger Team<\/h2>\n

If your business is growing and you are still trying to make it work with a small staff, it may be time to invest in a larger workforce. The more rushed and overworked your employees are, the more likely they are to make mistakes and be less efficient. To meet demand and ensure your employees are working their best, you need to consider hiring more workers. However, hiring employees isn\u2019t cheap. Another option is to partner with a third-party logistics provider (3PL)<\/a><\/span> that already has the warehouse staff, technology suite, and systems in place to help your business thrive.<\/span><\/p>\n

Invest in Software<\/h2>\n

Another alternative to hiring more employees is to choose a software that can take over some of the manual processes you run. Some software can help you build a more automated inventory flow and increase your efficiency. One option is an inventory management system (IMS) that collects data from sales and inventory counts. As your warehouse staff scan each item into the system, the IMS will update your stock levels. An inventory management system like eFactory<\/a><\/span> will allow you to run inventory reports, even schedule them to come to your inbox at the same time every day.\u00a0<\/span><\/p>\n

Avoid Dead Stock<\/h2>\n

Dead stock includes items that can no longer be sold, items that are out of season and style, and items that are irrelevant. Improving your inventory management will help you create processes to avoid dead stock and find solutions for how to get rid of it so you can make the most of your warehouse space.<\/span><\/p>\n

Save Money on Storage<\/h2>\n

For many businesses, warehousing is a variable cost that changes based on how many products are in storage. Storing too much product at once or finding out you have multiple products that aren\u2019t selling well means you are paying more for your storage than you need. Avoiding this can help you save money and invest it in other important areas.<\/span><\/p>\n

Regular Auditing<\/h2>\n

You can gain a better idea of how much you have in stock and how well certain items are selling by doing regular auditing. By relying on your software and reports from your warehouse, you can make accurate predictions to improve your operations day by day. Here are 3 methods:<\/span><\/p>\n