Tips For Optimizing Inventory Turnover
If you are the manager of a company, you likely want to make sure that your company is working as effectively and as profitably as possible. One potential obstacle to this happening is inventory turnover. You want to simultaneously ensure that you are storing enough product for your customers to buy without having to wait at any point; not storing too much product that could go bad, get damaged, or incur high storage costs; and making sure that you are keeping your shipping costs as low as possible. Here are some tips for managing and optimizing your inventory turnover.
1. Increase Overall Demand for Inventory By Talking to an Analytics Company
Your first step is to increase your overall demand for your inventory. It will be easier to create a stream of inventory if it is moving quickly, meaning that you put it on your shelves or up online and it is purchased relatively quickly. This will reduce your storage costs and increase overall profits. Talk to an analytics company to help predict trends in the market that you are trying to enter or dominate. This will allow you to come up with products that people will want to buy, allowing you to increase the demand for what you are storing as inventory.
2. Ask for Discounts Regularly When Buying in Bulk
Consistently review the amount of money that you spend on acquiring your inventory in the first place. This will allow you to get your product for a lower price if you are successfully able to get a discount for buying in bulk or negotiate a lower price for loyalty. Getting the product for a lower price will allow you to offset some of the costs of storing a larger amount of product, as well as make it easier for you financially to meet the increased customer demand that was generated above.
3. Define Inventory Groups
Finally, make sure that you are defining inventory groups. If you are a comic book store owner, for example, you might divide your comics by publisher. However, you should go a step further and divide them into superheroes, supernatural, and other comic book categories. This will allow you to better analyze trends such as superhero movies coming out that might increase the demand for superhero comic books.
For more information, talk to a company that specializes in helping business understand trends and analyze their overall inventory turnover efficiency using products like GP SaaS.