Inventory Management Best Practices

Inventory management involves a business’s inventory and its associated steps, including producing, ordering, stocking, storing, and selling products or services within a specific niche or market. Companies must process materials, put together necessary components, and build finished products their target market is looking for to successfully stick to inventory management best practices.

By establishing effective steps, companies can remain organized, analyze real-time data to make educated decisions, avoid supply chain hold-ups, and maintain profitability through loyal customers and consistent supply.

Streamlining production for companies not only means more consistency in cash flow but also leads to an accurate sales forecast and higher customer satisfaction rates and prevents overspending that could cause unnecessary losses.

So, how do you get started with inventory management? Finding the right tools, software, and technology can be confusing and time-consuming.

Thankfully, AMS Fulfillment can shoulder this burden for you. We offer a comprehensive suite of services, including fulfillment, value-added services, warehouse management, returns management, and, most importantly, inventory management. With us, you can rest assured that your inventory is in capable hands, allowing you to focus on other aspects of your business.

When creating a clean inventory, we ensure that all of our clients can accurately receive and dictate their products. We invest in accurate systems, fulfillment processes, and people to ensure our customers receive accuracy from the get-go so they can start making a profit right away.

AMS boasts highly skilled inventory management teams that maintain consistent levels of accuracy and control over receiving stock, putting away items, pulling orders, and replenishing items. Our thorough inventory management systems technology can adjust to warehouse changes and location variance, ensuring your inventory is always in good hands.

Why Inventory Management is Crucial for Fulfillment Success

Inventory management is not just a process, it’s a key indicator of a business’s success over time. It is essential for customer satisfaction, order accuracy, cost savings, and waste reduction. Understanding its importance can be a game-changer for your business.

One of the main reasons inventory management is essential for long-term profits and efficiency is accurate order fulfillment. Inventory management software helps prevent overstocking, stocking low-performing items, and focusing on the wrong aspects of your business.

Creating a foolproof plan with accounting software helps avoid inaccurate orders and losing consumers due to unhappiness with the product selection or order accuracy. Conducting audits is a critical part of inventory management, ensuring accurate restocking orders for:

• Preventing overstocking
• Enhanced order fulfillment
• Reduced waste

Next, inventory management helps with inventory planning, ordering, and fulfillment. This tactic improves the decision-making process regarding ordering stock items.

For businesses that have had trouble in the past making the right choices regarding current customer demand, inventory management ensures a real-time refresh of the popular products before they run out.

On the other hand, inventory management leads to centralization throughout the workplace. Management of data, stock, communication, and workflows provides businesses with a cohesive and comprehensive picture of all of their business operations, leading to:

• Streamlined processing
• Unified management
• Enhanced customer experience

Inventory Management Best Practices

We now know that inventory management is essential. However, the next step is implementing all of the practices. Many businesses need help figuring out where to start when establishing best practices in their current workflow.

But, beginning with these helpful tips can help companies boost their efficiency, profit, sales, and accuracy.

Implementing Real-Time Inventory Tracking Systems

Real-time inventory allows businesses to monitor their inventory levels during real-time processes using advanced technologies. Inventory Tracking systems, such as Radio Frequency Identification and automated systems, increase efficiency and reduce manual errors while creating up-to-date inventory data.

Accurate orders in stock play a crucial role in customer satisfaction. By ensuring that the right products are always available, businesses can reduce workload, prevent unnecessary work, and most importantly, minimize errors that can lead to a lower customer satisfaction rate. This focus on accuracy can help retain customers, boost satisfaction ratings, and improve online reviews.

Implementing a real-time inventory tracking system is not just about efficiency and accuracy. It’s also about significant cost savings. These systems lead to lower manual labor requirements, accurate tracking, better real-time decision-making, and improved customer service ratings. By reducing labor, storage, and excess stock costs, businesses can see a direct impact on their bottom line.

Some of the best real-time inventory tracking software tools for businesses of various sizes include:

1. Zoho Inventory — Free and low-cost plans, autofill purchase order creation, integration with CRM, Analytics, Sign, Zoho Books, and Shopify.
2. ShipBob Merchant Plus — One of the most well-known and industry-leading supply chain tools due to the accurate pick-and-pack process information and fulfillment tools. Although it lacks transparent pricing, it works well for businesses that need end-to-end supply chain software.
3. Fishbowl Inventory — Integration with QuickBooks tracks stock and finished goods and allows the user to choose between specific warehouse or manufacturing models. It is ideal for large-scale shipping companies that need a QuickBooks or Xero integration.
4. Extensive — Automated dropshipping, syncs global inventory, and optimizes inventory. This is a great option for online sellers who want to automate dropshipping, track stock, and manage fulfillment centers.
5. Katana — Low-priced plans, numerous features, integrates with e-commerce platforms, and has a time-saving purchase order feature. This integration works well for large B2B and B2C manufacturers.
6. inFlow — Provides sales order routing, one-click quoting, monthly billing, and a virtual showroom for B2B sales. It is often regarded as the top pick for startups and new businesses focusing on wholesale markets, B2B, and B2C e-commerce sales.
7. Ordoro — Syncs inventory, orders, and shipping with a wide range of e-commerce stores. It sells assembly products and automates dropshipping, one of the top options for tracking goods and parts for knitted items.
8. Cin7 — Features a built-in POS system, integrates with e-commerce platforms, and offers multi-location warehouse automation. Arguably, it is the top choice for fast-growing marketplaces that want to purchase automation and online sales options.

Forecasting Demand Accurately

Inventory forecasting is a critical step in increasing business efficiency. It involves understanding historical sales data, analyzing planned promotions, and deciphering external data to determine how much your business will sell over a pre-planned time period.

Inventory forecasting is a continual process that helps businesses and brands understand their future consumer demand by analyzing historical trends, seasonal purchase rates, and external factors to easily integrate into your current workflow.

This critical step in inventory management helps businesses improve their inventory accounting and free up funds by preventing stock over-purchasing. Furthermore, it helps prevent stockouts and reduces manual labor needs and costs. Lastly, inventory forecasting creates a more efficient production cycle and reduces inventory waste.

Some of the best forecasting processes include quantitative forecasting, which analyzes historical data; qualitative forecasting, which utilizes market intelligence and economic demand; trend forecasting, which monitors sales; and graphical forecasting, which identifies patterns.

There are a few critical technologies businesses can use when they need to forecast demand, boost efficiency, and streamline planning techniques:

1. AI and Machine Learning—AI and ML use algorithms to automate everyday tasks, giving humans enough time to solve critical thinking problems. These two technologies also identify connections and patterns between sources to adjust inventory to match demand. 
2. Big data analytics — Identifies customer trends, behaviors, and product requirements to determine how to adjust to the ever-changing market. This type of data works well for providing in-depth insight into customer patterns and trends so companies can adjust their products, stocks, and marketing.
3. Cloud-based software — Cloud platforms facilitate growth in a business, allowing a company to easily add more planning power, incorporate AI into daily operations, and identify any weak areas using data analytics. 
4. Internet of Things — IoT provides immediate market and supply chain feedback, gathering data on consumer behavior, shipment updates, inventory forecasts, and marketing inventory. It also boosts supply chain intelligence to prevent running out of stock while boosting efficiency. 
5. Advanced analytics dashboards —This specific dashboard helps simplify complicated information, leading to quicker and more educated decisions in the workplace. Plus, these dashboards ensure that data is easy to access and understand, making it easier for employees to collaborate and share objectives. 
6. Scenario planning — Simulation and scenario planning technology lets businesses see potential outcomes based on decisions, giving the higher-ups a chance to adjust their strategy and facilitate a backup plan in case something goes wrong. Plus, scenario planning and strategic demand planning allow a business to be more creative when it comes to launching products, branching out into new market spaces, or coming up with new ideas. 

Collaborative planning, forecasting, and replenishment — CPFR enhances intra-company collaboration and intercompany communication. It makes a clear pathway for businesses to talk to suppliers and retailers. Companies can share data and forecasts so everyone throughout a product’s lifecycle is on the same page.

Conducting Regular Audits And Cycle Counts

Regular audits and cycle counts are crucial for maintaining accurate inventory records. They help reduce manual errors, save time, and cut costs. By ensuring compliance with accounting principles, these practices provide foolproof accuracy, which is essential for effective inventory management. 

A business audit is a step-by-step examination of a process, workflow, or procedure to identify any weak spots, bottlenecks, or hold-ups that could be improved. An audit requires a thorough analysis of the current tasks, how they are performed, how information travels through the workflow, and how resources are utilized. 

The main goal of a regular audit is for the higher-ups in an organization to gain valuable insight into how the business is currently running, identify any chances for growth, figure out ways to streamline efficiency and see any places where they can cut costs. 

There are a few key steps to follow in an audit to ensure accuracy:

1. Define the objectives — Outlining goals gives businesses a clear direction for future efficiency, providing companies with information on how to organize and streamline workflows. Defining objectives leads to quicker operations, enhanced customer satisfaction, cost reduction, and a boost in productivity. 
2. Plan the process audit — Planning an audit lets businesses select the process for the audit, gather the necessary documentation and data, create a comprehensive team of stakeholders who provide diverse perspectives, and compile the scope, methodology, and timeframe for the entire audit. Companies can use various methods to collect data, such as data analysis tools and surveys, and then utilize software to compile the information. 
3. Collect data — Collecting data involves a well-rounded approach that entails finding relevant data points, ensuring data accuracy, maintaining a high level of security, and recording and organizing data. 
4. Analyze the results — One of the most important steps of an internal business audit is understanding the results after organizing the data. The analysis phase provides businesses with insights that can lead to quick and efficient change. Businesses need to identify patterns, evaluate performance metrics, utilize analytics, and determine the weaker areas in the business for day-to-day improvement. 
5. Presenting the results — Identifying the key takeaways from the audit, visualizing the current data, providing recommendations for future processes, and maintaining transparent communication are all essential facets of the final presentation phase. Articulating the impact of change on the business’ efficiency, processes, workflows, costs, and customer satisfaction ratings can make it easy for other professionals to understand the importance of the collected data. 
6. Put the audit into action—The last step is arguably the most important—it involves implementing your findings, analysis, and meeting results. Companies can now implement process automation, streamline communication, optimize resources, and standardize processes in the workplace to cut back on everyday costs and manual labor efforts. Regular performance checks allow businesses room to continuously improve, develop new technologies, and explore different approaches. 

Most businesses know they need to get started with audits, but don’t know the proper techniques to utilize for their company. There are a few well-documented techniques and methods that provide data-backed information for companies to use when it comes to making educated decisions for their future plans, processes, and sales:

1. ABC Analysis — Businesses classify items into A (high-value items), B (moderate-value with medium sales frequency), and C (low-value with high sales frequency). A is the most critical type of item for a business.
2. Spot Checks — Companies must carry out randomized spot checks to facilitate order accuracy and reduce the need for redundant inventory counting. 
3. Physical Inventory — Lastly, ensuring you carry out yearly physical inventory is essential to having current information. 

Cycle counting is a critical step in inventory management that can provide a high level of confidence in your inventory records. By considering a small portion of stock at regular intervals and using cut-off analysis, randomized cycle counts, and documentation, you can ensure the accuracy and integrity of your inventory. 

There are a few steps businesses can follow to conduct cycle counts effectively:

1. Plan — Consider the number of SKUs to count, the number of people you need to count, and the counting interval period. 
2. Review records — Correct any mistakes in the inventory transaction records to use for count comparisons. 
3. Close transactions — Close transactions before counting. 
4. Go by category — Count a singular category at a time to get a comprehensive picture of individual inventory levels and avoid data disruption.
5. Use a randomized sample — Select a random item sample to ensure every item is counted properly.
6. Utilize cycle counting technology — Scanners and inventory management software boost efficiency. 
7. Analyze records — Adjust the current inventory records to reflect the accurate counts and integrity of the inventory. 
8. Establish goals — Create accurate inventory goals and monitor progress to reduce variance. 

Adopting A First-In-First-Out (FIFO) System

A First-In, First-Out, or FIFO, system is an inventory accounting process that tracks the price of goods sold. This method considers that the first items bought or produced are the first items customers purchase in a marketplace. The older inventory items are recorded as sold before the newly produced ones, which can help companies identify the value of the inventory in stock. 

The FIFO system can help reduce waste by reducing costs, boosting the customer experience, reducing revenue loss due to expired items, and improving overall efficiency within the supply chain. 

FIFO is especially crucial in certain industries, such as food service, manufacturing, pharmaceutical, cosmetics, electronics, apparel, and retail. It is ideal for use with perishable goods, products with expiration dates, potentially obsolete items, and trend-based products. For instance, a grocery store can use FIFO to ensure that the oldest products are sold first, reducing waste and improving customer satisfaction. 

There are two vital characteristics to FIFO — ending inventory costs and calculating the price of goods sold. 

1. Inventory Removal — The products purchased first in the inventory should be the first ones removed from the account. Once the initial products are sold or removed from the inventory account, the stock will be recalculated at market prices. The remaining products still in the inventory will then reflect the real-time costs for consumers. The importance of inventory removal and modern pricing accuracy is that the stock and assets will have the most recent appraisal values. 
2. Cost of goods sold (COGS) — This involves businesses using the oldest purchases to determine the cost of items sold. The COGS calculation connects the oldest prices to the company’s current revenue stream, showing an accurate profit margin that takes into account the older purchase price and the modern selling price. 

Prioritizing Sku Optimization

SKU rationalization, a process that helps businesses evaluate Stock Keeping Units in their products and decide which ones are performing well enough to keep, is a key to productivity. 

The goal of optimizing SKUs is to reduce redundancies or non-necessary products that are utilizing necessary resources, making your business more efficient and successful. 

There are numerous benefits of SKU rationalization for boosting business efficiency:

1. Improve inventory management—By keeping track of what is selling and what is not, Businesses can minimize overstocking, cut costs, and eliminate underperforming products. 
2. Reduce costs—Companies can get rid of low-demand items to free up internal space, minimize carrying costs, and reduce the need for extra stock, which can lead to more labor requirements. 
3. Increase profit—Businesses can prioritize higher-performing stocks in the marketplace by focusing their efforts and resources on different items. 

Provide a better customer experience—SKU rationalization empowers businesses to make data-based decisions about offering new products to customers. Using a data-driven method to diversify a product portfolio instills confidence in your decisions, ensuring you provide needed items to your consumers while keeping your inventory lean and efficient.

Companies that want to use SKU rationalization in their new business model need to do the following to reduce waste and boost profit:

1. Data collection — Utilize a retail analytics tool to show SKU numbers and their details to provide sufficient insights about performance at the base level. 
2. Identify underperforming SKUs — Identifying a low-performing SKU can help you make the best data-based decisions for your future products. 
3. Evaluating the current demand — Spotting market trends, understanding customer behavior, and developing a reliable business strategy can help businesses change their SKUs and merchandising strategies. 
4. Access inventory — Evaluate inventory by addressing concerns like costs, risks of the products becoming obsolete, the impact on working capital, and the cost of the supply chain. 
5. Product variants — Identifying data collected by analyzing SKU attributes and product descriptions can help provide businesses with a comprehensive analysis. The more in-depth the analysis, the better decisions companies can make regarding their future SKUs. 
6. Execute the necessary changes — After you have made your final decision, the implementation process starts. Explain the reason for the changes and utilize data visualization to explain the predicted outcomes to employees. 

Ensuring Clear Communication With Suppliers

Building strong relationships with suppliers for consistent stock levels is key to avoiding overstocking or running out of stock, which can lead to excess money spent or lower customer review ratings. 

Setting expectations ahead of time and establishing clear rules from the beginning helps you set expectations for the data you require from your suppliers. Establishing a consistent platform ensures your supplier can meet those needs and communicate throughout the process. 

Utilize a communication tool for seamless talking between supplier and business that is accessible to everyone, easy to use, contains all necessary data, and features collaboration tools. 

Creating transparent communication helps businesses avoid delays and stockouts by establishing a common communication platform to easily access information, sharing sales forecasts to predict challenges, and communicating challenges within the business lifecycle that can affect inventory requirements. 

Furthermore, open communication helps suppliers and business owners reduce the chance of potential communication differences in various cultures, establishes transparent communication protocols, and offers digital collaboration tools. 

Technology and Automation in Inventory Management

Utilizing new technology methods and automation can help streamline inventory management processes, freeing time for highly skilled workers to focus on other tasks

Benefits Of Automation For Reducing Human Error

Utilizing automation in inventory management can help reduce human error, leading to streamlined practices that help companies in multiple aspects of their efficiency and safety sectors. 

1. Automation plays a crucial role in reducing operational risks — By leveraging automated techniques, businesses can identify potential security risks and develop a robust business strategy to enhance protection. Unlike humans, who are prone to errors, automated systems use machine intelligence to swiftly and accurately identify threats. This automated security system acts as a pre-set spam-filtering system, preventing safety breaches from occurring.
2. Comprehensive protection — Even when staffed with reputable individuals, IT teams can get bored of repetitive tasks, leading to potential errors and oversights. However, when you use automation, you can liberate your team from these tasks, preventing potential cyber breaches and risks by deploying software updates to provide company-wide protection.
3. Reducing workload — Automation can also help reduce errors by alleviating the current demands on your team. Overworked and stressed individuals are more likely to make mistakes, which can lead to costly errors. By automating online systems, you not only drive efficiency but also create preemptive strategies to protect against potential attacks. This reduction in manual labor demands can significantly improve employee well-being and productivity.
4. Quicker response times — Automation means that resources are automatically available. New security solutions help minimize risk, adapt to evolving cybersecurity threats, and simplify current tasks, increasing the speed and efficiency of operational processes.
5. Follow methods accurately — Automated workflows ensure that every user in a space completes the steps in the correct order without skipping steps. This accuracy reduces the potential for human mistakes or missing information, providing a sense of security.
6. Warehouse layout — Automation and Artificial Intelligence can help optimize a business’ layout by tracking grouped items that sell well in groups or which items sell the quickest. 
7. Employee training —The last way automation can help reduce human error is by creating a quick, easy, and simple-to-follow employee training onboarding flow. Ample training is essential to ensure all new workers are up to date on the latest business information without a lengthy and tiring onboarding process. 

There are a few key areas where automation can make the most impact on a business:

1. Healthcare — Automation in the healthcare industry can reduce overhead costs involving data entry.
2. Customer Service — Helps customer service teams focus on more complicated issues, saving data entry and admin tasks for automated technology that reduces clerical errors and saves time.
3. Logistics — Helps create more efficient order bookings and package handling. 
4. Marketing — Controls and manages lead capturing, nurturing, and tracking. 
5. Manufacturing — Crucial for manufacturing electronic devices, order processing, assembly line scheduling, production processes, and the supply chain process. 
6. Transportation — Assisted automotive technologies make roads safe for transportation, public transit, and daily activities. Automation helps route optimization to create better on-road efficiency and reduce fuel consumption.
7. Education — Automation helps with reading, formulating transcriptions, and updating workflows that can be done quicker without the need for human input. This gives teachers more time and energy to deal with more complex problems, such as special education classes, e-learning, and student support. 
8. Robotics — Automated robotic food services help with a step in the production chain process, aiding with manual tasks that can free up mental space for employees to focus on problem-solving. Furthermore, automation aids with task efficiency, employee safety, and productivity. 
9. Retail — Industrial automation boosts the accuracy of inventory counts and restocking tactics and frees up human time for solving complicated tasks. In addition, retail automation reduces the need for 24/7 staffing, which boosts daily sales and overall profits. 
10. Agriculture —The last business sector where automation can thrive is agriculture, where farm technology can use automated tactics to plan crop rotations, irrigation processes, and harvesting techniques. Improved efficiency and productivity in the agricultural sector boost yields, leading to more consistent profit throughout the year.  

Using Data Analytics For Better Decision-Making

Data analytics can lead to quicker and more accurate decision-making, which can help with forecasting and inventory optimization. AI and machine learning are key parts of data analytics software that make decision-making more straightforward, quicker, and accurate. 

AI and machine learning are both helpful tools that are useful in predicting demand and optimizing stock, along with:

1. Better accuracy — AI and ML are extremely accurate, leading to precise forecasts and pattern identification that are more reliable than standard statistical tools. 
2. Data integration — Both tools can analyze large quantities of information from various sources, including data integration from dozens of channels. A detailed and comprehensive analysis provides an in-depth look and insight into the target market’s behavior, buying patterns, external factors, and market trends that can help create foolproof inventory strategies.
3. Adaptability—AI and ML are changeable in real-time, leading to adaptability regarding market trends, price changes, seasonal fluctuations, and customer demand trends. The adaptability and agility of both of these tools ensure that the detailed strategies are helpful in the current market. 
4. Continuous learning—Both algorithms can constantly evolve and ‘learn’ due to consistent data. The new learning process boosts the tools’ accuracy, effectiveness, and efficiency in predicting the markets. 
5. Automation — AI and Machine Learning are mostly automated; you can cut costs, reduce human error, and create a more efficient system that is more responsive and accurate in decision-making processes.

In addition to using artificial intelligence and machine learning in data analytics strategies, businesses need to focus on using and interpreting analytics for smarter inventory decisions. 

There are a few best practices to follow when it comes to using analytics in a business:

1. Classify inventory — Inventory should be classified or ‘coded’ based on a ranking system. Usually, businesses consider ‘A’ products more desirable and costly but less frequently sold, whereas ‘C’ products are low-value but most often sold. Companies should focus on selling as many ‘A’ products as possible. 
2. Centralized data—Stakeholders, employees, and management should all be able to visualize the data. A centralized platform makes it easy for everyone involved to see, understand, and utilize the data to make smart decisions in the future. 
3. Gather accurate information—Use technology to gather data and store it in a centralized system that helps make real-time, accurate decisions. 
4. Utilize a current dashboard — Technologies that provide real-time dashboard data with visual metrics and an easy field of vision make it simple for leadership and employees to see productivity levels, stats, and personal data in one place

Common Inventory Management Mistakes to Avoid

Even though you may have crossed your T’s and dotted your I’s, sometimes people miss things —and that’s normal. However, by being aware of and avoiding these common mistakes, you can significantly improve your inventory management practices and set your business on a path to success. 

Lack Of Organization 

One of the leading inventory mistakes to avoid at all costs is a need for more organization within the workplace. Whether this means with your current processes, training employees, documenting stats, or keeping records, a lack of organization means there are no streamlined processes to put your hard-earned data into place. By prioritizing organization, you can regain control and ensure the smooth operation of your inventory management. 

Whether your business has only a few areas of inventory or runs multiple million-dollar warehouses, organization is key. Businesses need to keep a constant eye on their inventory, which involves taking stock, verifying levels, and locating the required inventory in a timely manner. 

Compiling Comprehensive Information From Multiple Sources

Next, inventory management must avoid relying on one employee or a small group of employees for critical information. By compiling must-know facts and data from various groups and sources, you not only get a more accurate picture of your business but also prevent individual opinions or mistakes from skewing the data. This comprehensive approach to data collection empowers you with the information you need to make informed decisions. 

A collaborative and comprehensive management team and system provide 24/7 access to data for stakeholders and other inventors. This shows professionalism and shows investors that the business is covering its bases. Furthermore, creating a standardized and streamlined procedure for inventory management that can easily be reviewed or updated by new management makes it easy to transition into new leadership. 

Inventory System Matches The Business Goals

The next step in selecting an inventory management strategy that works for a company is to choose an inventory system that directly matches the business’ goals and current needs. If you are a small, independent company, there is no point in choosing a widespread management plan that is conducive to hundreds of stores and warehouses. 

Inventory management software is a smart way to begin the inventory management process. This type of software is affordable, low-cost, and simple to use, allowing entrepreneurs and small business owners to utilize it to help their businesses grow quickly. 

Double-Check Data

As a business owner or a company management member, ensuring all data is accurate not only cuts costs but also helps reduce time-sensitive errors that could lead to long-term issues in productivity in the future. Double-checking data entry into spreadsheets or using inventory management software helps prevent clerical errors that can become costly problems. 

Renaming Items

For new businesses attempting to organize a stockroom and manage inventory, having two or more stock items that sound alike can lead to confusion and slower processing times. Inventory management software with high-resolution images, barcodes, and scanning capabilities can prevent human error during the input phase. 

Prevent Over-Ordering

Many businesses, especially new startups and entrepreneurs, will over-order certain stock items due to a lack of confidence in their management strategy. Over-ordering can tie up capital in excess inventory, lead to storage issues, and potentially result in wastage if the items expire or become obsolete. 

Using inventory management software to automate ordering and gather more comprehensive knowledge regarding current data (stock, selling time, order quantity, etc.) can help businesses stock appropriately and avoid these costly consequences. 

Stockouts 

Keeping records and utilizing the gathered data for demand forecasting is the only way businesses can avoid stockouts, overstocking, understocking, or making false future product estimates. 

Overriding inventory or severely under-ordering can lead to extreme customer dissatisfaction, lack of sales, and a huge drop in efficiency during seasonal fluctuations or market changes. 

Last-Minute Inventory Restocking

The last mistake that businesses need to avoid when utilizing inventory management software in their workplace is using last-minute data, techniques, and processes to restock their warehouses. 

For instance, if a company does not have inventory in the right place when it is needed, this can cause long-term delays, worker error, employee frustrations, and resource waste. Last-minute decisions are often fast and frantic, and they do not use science-backed data to make smart decisions about productivity, current stock, and profitability. 

If a company does not have inventory in the right place when it is needed, this can cause long-term delays, worker error, employee frustrations, and resource waste. Having an inventory management strategy that provides management with information regarding what is in stock, even at multiple locations, ensures that investors can determine if they need to restock and when.

The Role of AMS Fulfillment in Optimizing Inventory Management

AMS provides comprehensive inventory management services, which are the cornerstone for clients looking to make smart, data-backed decisions based on inventory status and availability. 

We view inventory management services as a necessity for AMS and clients due to the importance of accuracy. When delivering a customer with the correct product in a specific time frame, providing unit-by-unit accuracy, following efficiency in operations, and adhering to shipping standards are essential. 

We heavily invest in inventory management technology and combine people, processes, and management systems to fulfill our clients’ needs and complete our daily operations. 

Our associates and thorough employees meticulously follow step-by-step procedures that involve systemic checks and balances for receiving, distributing, sorting, and pulling orders. 

We have a dedicated inventory management team that ensures complete accuracy and order fulfillment, providing you with a sense of security and reassurance.

Secondly, our operational methodology involves ample research by highly trained inventory management personnel, allowing on-the-go adjustments with the warehouse and technology system to reflect accuracy in each location.

AMS Fulfillment prides itself on its unwavering commitment to inventory accuracy. We guarantee our customers an accurate order every single time, instilling confidence in our reliability and commitment to your satisfaction.

Not only does AMS have a foolproof system that ends with accurate order fulfillment for all of our consumers, but we also offer new technology that is unique to our company:

1. SKU provides inventory master data at various inventory levels
2. Analyze inventory setups, floor pickup locations, stock locations, and sequencing
3. System-driven cycle count programs 
4. Data sync between our system and clients’ ERPs for accuracy
5. Data integrations with client ERPs regarding order details and SKU status designations
6. Security for customers’ valuable products entrusted to fulfillment 

We have years of success serving various industries, including beauty products and cosmetics, apparel, household goods, accessories, and supplement fulfillment strategies. 

Conclusion

Inventory management is one of the most important factors in any business, whether it is a new startup or a well-established corporation. It helps with the efficiency of inventory control regarding sourcing, storing, selling, and restocking and is vital to the success of any business. 

Succeeding in inventory management can help a business boost its competitiveness in specific industries, raise its company’s reputation among others in the same niche, and increase daily productivity levels. Not only does management help prevent running out of items that can lead to customer dissatisfaction, but maintaining stock levels steadily generates customer loyalty through higher reviews and satisfaction ratings. 

By focusing on sourcing materials, checking items, double-checking orders, picking orders, shipping orders, restocking inventory, and monitoring data, businesses can succeed in inventory management to facilitate consistent growth in their sector. 

Businesses that utilize inventory management best practices will optimize their operations for growth. Companies can lower costs, reduce human error, become more efficient, and establish trusting relationships with suppliers, leading to long-term profits, customer loyalty, and a high standing in their industry. 

Get Started with AMS Today! 

Do you need a change? We don’t blame you. Explore AMS Fulfillment’s services for better inventory control and fulfillment solutions.Sign up for a free trial today with AMS Fulfillment to get started implementing inventory management best practices into your daily business processes.