Three Ideas to Solve Inventory Problems
Many owners of import and distribution businesses have approached RMP Consultancy to discuss how they can control their inventories better, avoid slow moving stocks and make a better profit from their operations.
Modern internet technology has made it very easy for just about anyone to access goods from anywhere in the world and sell it directly on the web. Many of your former customers now think that they should cut out the middleman, that’s you, and buy and sell directly and keep the profits.
There are now very many companies offering the same or similar items at cutthroat prices. Costs are rising, profit margins are shrinking, and even best sellers go out of style too quickly. Many items are staying too long in the malls and even the provincial outlets before they are sold.
The old business model of just guessing what the market may want, importing it, and hoping that the shoppers will visit the mall or provincial outlet is no longer working.
How do you stay in business and make a profit in this kind of business environment? This article explores some ideas on how this can happen.
What Can be or Should be Done?
- Embrace the Internet of Things (IOT)
There is no more excuse to delay computerizing your operations. Your competitors are already doing it, so don’t be left in the dust. You need to implement inventory control using bar coding equipment, apply strict inventory control with cycle counting, and develop dashboard and other reporting systems to keep you updated.
- Keep a close eye on fast moving high profit items
Be more pro-active on keeping a close eye on fast moving high profit items. The development of the Internet of things (IOT) means that high performance stores know exactly what is selling and what is not selling. Customer preferences change very quickly these days. The old monthly meeting is too late.
- Train your Staff in Basic Inventory Control
Letting your staff remain as mere watchers is a waste of talent. Train them in simple inventory control techniques like pareto analysis. Using pareto they can immediately report which items are selling quickly and which ones have already reached their end of life cycle. They can immediately report to you the business intelligence you need.
These are only three ideas on what you can do to improve your profitability. We can help you develop better inventory control. Give us a call.
Upcoming Warehouse, Inventory and Logistics Seminars
5 Dec 2019, Thursday, Basic Warehouse Operations and Inventory Control,
11 Dec 2019, Wednesday, Effective Inventory Planning and Management,
9 Jan 2020, Thursday, Good Warehousing Practices,
13 Jan 2020, Monday, Basic Warehouse Operations and Inventory Control,
17 Jan 2020, Friday, Effective Inventory Planning and Management,
21 Jan 2020, Tuesday, Good Warehousing Practices,
30 Jan 2020, Thursday, Strategic Warehouse Management (Two Days),
5 Feb 2020, Wednesday, Good Warehousing Practices,
10 Feb 2020, Monday, Basic Warehouse Operations and Inventory Control,
Register for one of the Seminars Above
Please Contact Claire or Marco
Landlines: Tel (632) 8697-0767, Tel (632) 8372-4563
Mobile (Globe) 0917-882-5578, Mobile (Smart) 0918-937-3455
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