Jasdeep Singh of CT is a business professional and entrepreneur of several start-up companies. In the following article, Jasdeep Singh of CT discusses the most effective inventory management solutions for small businesses, and how small start-ups can manage these solutions to maximize resources.
Every business needs near-constant evaluation to determine its progress towards identified KPIs. In any physical product or material research company, inventory management can be one of the most crucial components to operational and financial goals. In the interest of supporting small and start-up businesses, Jasdeep Singh, discusses effective inventory management solutions.
Effective inventory management solutions for small businesses involve using the best tools, including a personal stock controller and the latest inventory management software, and consistent and constant QA/QC. Additionally, Jasdeep Singh of CT says that solutions need to include audits and following appropriate strategies, such as “first in, first out,” ordering and shipping calculations, and supply chain management.
Effective Inventory Management Solutions
Jasdeep Singh of CT says that if a small business wants to grow and succeed the motto needs to be “minimize holding costs – optimize inventory savings” However, figuring out what the best strategy for inventory management is can be daunting, with so much else on the modern business owner’s plate each work day.
Because of this, Jasdeep Singh of CT shares effective ways to manage inventory:
- Use the Best Tools to the Business’ Advantage
- Implement Best Inventory Practices
- Actively Take Stock
Use the Best Tools to the Business’ Advantage
Jasdeep Singh of CT says that the best tools to use for inventory management should not just rest with a business owner’s own counting system. Research the latest in inventory management software for great results. There are many options, including Cin7, inflow, and Megaventory, that include various wrap-around services and come in at different pricing levels. To start, Zoho Inventory offers a free platform for early-stage companies with limited resources.
Not only that, Jasdeep Singh of CT explains that a stock controller is a great investment if a business owner would rather hire a professional to keep tabs on supplies, and manage reordering low stock items. Just like hiring a solid accountant and lawyer are central to a business, an inventory professional may just be worth their weight in gold for those in manufacturing or other material-intensive markets. A part-time consultant stock controller can also be scaled with the business to become entirely responsible for processing purchase orders, making sure that deliveries always match the order, and playing a big role in quality control.
Remember the Best Inventory Practices
In addition to using the best tools for a small business’ advantage, Jasdeep Singh of CT says that managing inventory well is all about day-to-day processes that should never be overlooked. One of the oldest and most true ways to manage inventory is to remember the “first in, first out,” rule. This states that the oldest, especially expiring products, are the ones most readily available to customers. This will keep out-of-date products out of the marketplace and reduce holding costs as items age and require maintenance.
Best inventory practices also include proper supply chain management and ordering. Determining economic order quantities (EOQ), reducing intermediaries, and working actively with suppliers and buyers will help a company balance just-in-time inventory with just-in-case inventory built strategically. If this last sentence reads like Greek, you’re not alone! There are hundreds or articles and videos leaders can access online and many part-time professionals who are ready to help.
Keep Track of Stock
Finally, keeping track of what the business has and what it sells most quickly, as well as what does not sell, is essential. Do this through a stock audit, which constitutes counting inventory, assessing sales, and detailing buying/shipping patterns.
Jasdeep Singh, explains that this process should be done regularly and tracked over time. The goal is to understand what is needed daily, what may be needed in inventory (to avoid a stock-out), and what may not be needed at all. Buying is an expense but can also be a savings if done based upon solid data.
Most inventory platforms mesh with other enterprise systems to allow business leaders to collate and analyze such data. There is a reason business analytics is becoming the top specialty of MBAs, and should become part of a COO and CFO board reports, quarterly statements, and business goals.
In Conclusion
In conclusion, Jasdeep Singh, says that making sure inventory management is more than just counting what is on your shelf and should become part of the core operational and financial goals of a company. Much of this requires some technical expertise but a lot of time, so CEOs or founders should really make such a hire central to a business’ growth.
Implementing inventory practices can ensure quality control and minimize costs, perhaps proving that an ounce of prevention is worth a pound of payment.
