And remember those pos we covered in Step 2? As your inventory numbers click down with each sale, reorder alerts or automatic POs will generate. This makes stock reordering quick, easy and, most importantly, bases your reorders on actual sales trends, not your best guess. In the plan early days of my online business, i accepted orders without having the product on hand, but thought I had plenty based on my manual spreadsheet. Luckily, i was able to quickly restock and fill those orders. But what if I hadnt been able to? It would have been a disaster.
With a manual system, youll record orders by hand or track them within a spreadsheet, essays then manually adjust the inventory quantities for each item sold. A small operation can handle this manually as long as inventory reductions are tracked regularly, say at the close of each business day. But as you grow, a pos system will dramatically streamline your operation by automating your inventory reduction with every sale. That means every time you make a sale, each item sold is automatically removed from your inventory records. Plus, each recorded sale lists each item sold. Its all very tidy. A pos also gives you up-to-the-minute sales totals. You dont have to wait for an end of day closeout to know your daily sales since you can run reports at any time.
Regardless of the type of price tags or product labels you use, a good time to tag and label inventory is during the stock receipt process. That ensures the task isnt overlooked and prevents unlabeled stock from being shelved or displayed for sale. You can simply build this step into the stock receipt process we covered above. If using a pos, you can even have barcode labels print automatically when you receive stock into the system, like this: Print barcode labels automatically with Lightspeed Once printed, labels can be affixed directly to product packaging or attached to hang tags. Some inventory might even arrive pre-labeled with manufacturers barcodes, which you can also track in your pos. In that case, your job is easy. You can just add a price label. Track your Sales products Sold Tracking sales is a must for any business operation and it involves more than just tallying up the totals at the end of the day. A good small business inventory management system also records every order in detail, including each item sold.
Inventory, management, materials Requirement, planning
Or, adjust the stock counts in your spreadsheet or manual inventory management system If you find errors like wrong, shorted, or missing items, note these on your po and contact your supplier immediately to resolve shelve or store all correctly received stock, tag or label. Enter your bill into quickbooks or the accounting system that you use receiving stock is another help task made easier by a pos. Unlike manual inventory management methods, when you receive the po for a stock shipment in a pos, your inventory numbers are automatically, and correctly, adjusted. Receiving purchase orders in Lightspeed. Tag label Inventory you need to tag and label your inventory for two reasons.
First, price tags and product labels display an items selling price to shoppers. Second, product labels, particularly barcode labels, help you closely track your inventory and speed up the checkout process. For basic price tags, you can use a standard price tag gun to quickly price items, or even use hand-written price tags if they fit your stores motif. Both work fine with spreadsheet or hand-entry inventory management methods, but they dont help you automate the overall inventory management process. If you carry a large inventory, say over 100 unique products, barcode labels can make many key functions quick and easy. They speed up the checkout process, help you do fast and accurate inventory counts, and link each inventory item to your sales. Most pos systems, including Lightspeed, support barcode labels and some are even starting to work with the higher-tech electronic tags (rfid tags).
Receive inventory Accurately not having a system and process in place to accurately receive inventory is one of the most common small business inventory management mistakes, and the data backs that. According to the national Retail Federation, 28 of inventory shrink is attributed to supplier mistakes that arent caught during the stock receiving process. A sound process that includes checking all stock receipts against purchase orders minimizes these losses. — jason Richelson, ceo, staffKeep former ceo, shopkeep The most high-tech po in the world cant remedy stock receiving errors. So another key aspect of small business inventory management is to have a standard method for receiving inventory shipments. This ensures: All boxes are received and unpacked together All items received are accurately counted All received items are checked against your po for accuracy Its especially important to ensure that you check all received items against your.
Suppliers generally include a packing slip that lists the items and quantities in your shipment. Its easy for stockroom and warehouse staff to check in a stock shipment in with only the packing slip, but thats a big mistake. If the supplier made an error during order entry, their packing slip will match the shipment, but it wont match your. If this isnt caught by checking the received items against your po, youll think you received stock that didnt actually arrive. That leads to stock shortages, backorders, and ultimately, cash losses. So, always check your receipts against each po, not just the suppliers packing slip. In fact, check your vendors invoice against each po as well, to catch any price errors or changes. How to Accurately receive stock Shipments Ensure that you receive all boxes, containers, or other units in the shipment Unpack the shipment and organize items by product Check the items and counts against your po if the counts and products match, receive the.
Inventory, management - levels, system, model, type, business, system
Nowadays, most vendors prefer to receive electronic POs like those that paper pos systems send in a oliver few keystrokes. But if youre managing inventory using spreadsheets or via handwritten methods, you can use the following templates to create consistent POs that can be emailed or faxed. If you submit POs manually, make sure you use a dark ink, write legibly, and differentiate between letters and numbers that look similar, like 1s, Ls, and Is, to reduce errors. With a pos, the ordering process is quite easy. Since a pos tracks your sales data and inventory for you, you can quickly place orders based on up-to-the-minute sales numbers and inventory levels. You can even set up automatic reorders or be notified you when products hit a low-stock level. If you sell in any sort of volume, this automated convenience is a major timesaver. Heres a look at how Lightspeed pos lets you quickly create purchase orders from a convenient screen: Creating purchase orders in Lightspeed.
This is helpful in case one supplier is out of stock or if you need to compare wholesale prices. Once you have all of this data recorded in one place, be it a pos, spreadsheet, or notebook, you can ditch all of your paper clutter like rolodex cards and dog-eared supplier catalogs. Create submit Accurate purchase Orders Purchase orders (POs) are the easiest way to manage your inventory purchases. They let you efficiently track every stock purchase, from placing the order, to receiving the shipment, to paying the bill. Since theyre essentially financial transactions, inventory orders shouldnt be done without planning. Ideally, only create pos when you have time to review your cash flow and realistically forecast your stock needs. You can submit POs many ways, from handwritten orders sent via fax to emails sent from your pos.
Regular retail price / msrp your selling price colors or sizes Vendor, supplier, or manufacturer name reorder quantities Shipping details: size, weight, box pack (if applicable) Picture or product image If you sell less than 30 products, you can get away with using a spreadsheet. But neither are automated, so both methods are time-consuming and also prone to errors. A pos really is the best way for small businesses to manage their inventory. Heres a look at how Lightspeed organizes all of this product information into one intuitive screen: An organized product page in Lightspeed you also need to record key vendor data in your chosen inventory management method. This lets you quickly access supplier contact information, payment terms, etc. Here youll want to include: Vendor name vendor contact name vendor billing information Vendor phone payment terms Line rep or showroom contact If using a pos, youll enter this into your system and link it directly to each inventory item. You can even list multiple suppliers for each product in pos systems.
Pro tip: Streamline, inventory, management with a pos, if youre looking for a pos system, the free square pos software is a good option for smaller inventories. For larger inventories, a pos with advanced homework inventory tracking features like. Lightspeed offers excellent inventory tracking methods right out of the box. Purchased items are automatically deducted from your inventory records, and you get notified when stock is running low. Lightspeed also lets you build purchase orders easily when its time to reach out to your suppliers. Click here for a free trial. Visit Lightspeed, whichever method you choose, youll need to record both product-specific information and supplier details into your inventory management system.
A guide to, inventory, planning : An Introduction to, inventory, operations
Small business inventory management provides up to the minute data on current stock levels, inbound stock, and connects your key financials like sales and cost of goods sold. This data is critical to fine-tuning profits, cutting losses, and spotting theft and inefficiencies. In this article, well show you evernote how to get your inventory organized and on track in 8 easy steps. Organize your Product vendor Information. The first step in organizing your small business inventory system is to set up your stock and supplier information in a reliable and accessible system. Some businesses use manual tracking methods, but the best option generally is a budget-friendly. Pos system for retailers or order management system for ecommerce sellers.