Inventory-centric businesses that respond now will endure and be even stronger when things return to normal. Right now, it is the perfect time to think about how to quickly prepare to be substantially more efficient in the coming months. Here are eight tips to help prepare your business to exit this uncertain time better and stronger than before.
Fishbowl + QuickBooks
1. Implement accurate, flexible, cost-saving inventory software. Implement inventory software to eliminate human error. Often businesses may have already implemented aspects of automation on different software packages, but further automation through a common business platform, or from one that can work seamlessly with the additional platforms will greatly increase your efficiency.
2. Utilize existing staff resources to clean up and prepare data. If you have staff restricted from doing their standard roles in the business, utilize their time on the data to make a move to your new solution. Right now, it can be very difficult to keep the doors open, your people working, or even to stay in business.
- If possible, put your people to work in new areas that can help you in areas that will future-proof your business. Working on organizing and cleaning up all your data through all aspects of the business will allow people to keep working while also helping you prepare for the future. Especially if you plan to implement new technology or technological enhancement.
3. Tighten up your inventory control. Optimize your receiving processes, record actual landed costs, correct discrepancies on the spot for live inventory updates, and implement an accurate “pick-pack-ship” workflow.
- It is essential to know how much of a product is available to sell and where it is located. Keeping too much inventory on hand may tie up cash that could be put to better use in other areas of the business. Determining ideal inventory levels is a constant balancing act and is key to a healthy, growing business.
4. Adjust your reorder points. Set and adjust your automatic reorder points. Allow for the increase or decrease in demand for your products; look at your supplier lead times and adapt reorder points accordingly.
- Additionally, the ability to quickly enter customer orders and tracking them throughout your company is crucial to providing a good customer experience. Plan to make sure you can track purchasing, receiving, stocking, picking, packing, shipping, and accounting to bring cohesiveness to your business as you increase your bottom line and move forward to a future-proof new level.
cycle-counts
5. Perform cycle counts. Conduct spot checks or cycle counts on your inventory. Use barcode scanning to help do it quickly and accurately. A wireless barcode solution can increase inventory accuracy and worker productivity in your warehouse. It can eliminate errors and allow you to know your on-hand inventory and allow you to access detailed inventory information. It allows you to make sure your stock levels are correct so you can best serve your customers.
6. Revisit dormant customers. Study your customers’ order history and see which customers have not ordered recently. Call to see if they need their stock replenished. We have seen how many businesses recently have been caught unprepared for the increased demand for many products. Now is a good time to make sure you can sell your current inventory to your customers to meet current demand as well as establish your inventory channels and demand for the future.
7. Manage payment terms. Make sure you’re getting paid on time so you can pay your suppliers, cover expenses, and so you can acquire more stock where appropriate. This is often a 'no brainer' but can be overlooked in the scurry to keep business moving. If you’re getting paid on-time, you are in a much stronger position to continue meeting your financial obligations including payroll.
8. If you are a manufacturer, build some sub-assemblies. Build some of the sub-assembled components to get a head start on the manufacturing process. During this time, you can focus on building your sub-assemblies increasing their availability. As the uncertain times diminish, you will be in a much stronger position to compete and move forward with your business as manufacturing and sales demand returns. It will also keep your employees and staff busy.
Many small and medium-sized businesses are looking for smarter ways to operate to survive in this changing and uncertain time. After gaining control of their finances (generally using QuickBooks), the next areas for efficiency improvement include order management, inventory control, warehouse management, and manufacturing.
The cost of purchasing or manufacturing products to sell is often a company’s largest expense it becomes imperative that businesses not only do everything they can to strengthen their operations for the current situation but do those things that will help future-proof their business so they come out stronger and far ahead of the competition as we all come out of these uncertain times.
About the Author
John David 'JD' King is the CEO of Fishbowl, based in Orem, Utah. Fishbowl is the most popular desktop manufacturing and warehouse management solution integrated with QuickBooks, and it is also used as a standalone solution by many organizations and enterprises looking to track their inventory assets.