Inventory Management: Everything You Need To Know

Calculating inventory changes at the end of every work day would take forever, so businesses tend to adopt a periodic inventory system.

Tracking inventory changes periodically will save time, but also reduce your visibility and control over your inventory.

Which means if the numbers don’t tally, it’ll be harder to track when the error occurred. If that’s happened to you, it’s time to think about switching to an inventory management software solution, like TradeGecko.

Switching to a perpetual inventory system means you’ll get accurate reflections of inventory levels at all times. And with better visibility and control, it’ll be easy to track down and remedy any errors you encounter.

SKUs: The Building Blocks
You’ll want to start by devising an alphanumeric Stock Keeping Unit (SKU) system.

SKUs are product codes that’ll let you search and identify stock on hand from orders and invoices.

With these, you’ll be able to easily track your inventory movement right down to individual variants of every product (color, size, etc.).

With a good SKU system, you’ll be able to minimize opportunity for theft. When products are narrowed down to SKUs that denote a small number of items… it becomes harder for things to just disappear.

A SKU system should improve the responsiveness and effectiveness of fulfilling orders.

If you’re looking for some tips on what to consider when creating your SKU system, download now and read on!