Improving Inventory Processes: 5 Updates You Need to Make to Your Inventory System

A guest post by Marlena Stoddard
















Improving inventory processes will allow a business to more closely monitor their purchasing, provide better customer service, and produce more accurate inventory reports when it is time to file corporate tax returns. Whether the company sells galvanized carriage bolts or other hardware, it is best to make some changes that will give the company a more firm grasp on their inventory levels.

1. Individual Tagging
When companies sell small items in large quantities, it is tempting to only tag a box without tagging the individual products. Tagging individual products may take more time, but the process allows for the business to know exactly how many items were sold. This change in inventory system takes the guesswork out of boxing bulk items.

2. Proprietary SKU Numbers
When using the UPC codes from the manufacturer, a business runs the risk of confusing the codes or using sets of codes that are too confusing. Proprietary SKU codes allow the company to easily identify their products. Not only can the company easily identify their own products, but customers can much more easily find the items they're looking for.A customer can call in with a simple, proprietary SKU and make a quick purchase. This aids the company and the buyer.

3. Link Website Purchases
When companies are selling directly through the mail or over the phone, it is easy to physically notate the number of items sold. However, customers who find products online can purchase at will. While the products still need to be shipped, the record of the purchase is elsewhere. When companies link the purchases made from a web page like http://www.wholesalebolts.com/hexheadlagscrews.aspx, they will know how many hex head lag screws have been sold without searching through the purchases records.

4. Product Names Must Make Sense
While it is fun to come up with interesting product names, those names can be very confusing. At the end of the day, the customer wants to be able to easily recall what they purchased. Moreover, the accountant handling inventory must be able to easily find products. Simple and utilitarian product names save time and energy for the customer and the seller.

5. Inventory Must Happen More Than Once A Year
The company that only has inventory once a year can leave itself open to surprises when the yearly inventory occurs. Taking inventory multiple times a year helps to catch problems with the inventory system. Repeating inventory also allows time for the company to correct any discrepancies in the inventory count.

Making some changes to the inventory system of any company can improve sales, accounting, and the filing of taxes, and each of these steps will get the business where they need to be.


Author Bio:
Marlena Stoddard writes on small business and entrepreneurship. Originally from Senoia, GA, Marlena lives in Santa Rosa, CA with her husband and 2 children. When she isn't spending time with her children or writing, Marlena enjoys hiking and photography. For more on Marlena, you can follow her on Google+