How to Manage Wholesale Inventory
If you are starting a wholesale business, you're probably going to have inventory. When the orders start flowing in, the boxes pile up, and you get to know the FEDEX or UPS man on a first-name basis, things can get hectic. Don't forget that your customers are relying on you to provide them with the products they need in a timely fashion, and your suppliers are waiting to get paid. A good inventory management system will allow you to take care of both of these tasks efficiently.
Other People Are Reading
Instructions
-
-
1
Rent storage or warehouse space that is large enough to meet your current and future inventory levels.
-
2
Establish a computerized inventory system. The system should allow you to set up a supplier account (with name, address, and supplier number), enter information about new orders, and delete inventory when sold off. It would also make it easier to process payments if the system interfaced with your invoice management system.
-
-
3
Hire an inventory and shipping manager to handle the day-to-day inventory management duties.
-
4
When you receive shipments from suppliers, immediately have them entered into the inventory system. Do not let orders sit on your warehouse floor.
-
5
Categorize inventory so that each item is easily retrieved to fill orders. Keep your best-selling items toward the front and on the top, with your less-popular products stacked toward the back and bottom of the inventory pile.
-
6
Keep inventory packed inside boxes or in a protective covering whenever possible to reduce the possibility of damages. Place a video camera in your warehouse to reduce the possibility of shrinkage (loss due to theft).
-
7
Do a manual inventory count regularly (at least annually) to assure that the figures in your inventory management system are the same or similar to the actual count.
-
8
Place non-selling items (no sales after ninety days) in a designated area to be processed for returns. Send the items to the shipping department and have pending invoices adjusted. You want to be sure that an invoice isn't being paid for on inventory that is about to be returned to the supplier or manufacturer.
-
9
When orders are received, pull the products out of inventory and place them on a cart or pulley along with the purchase order so that they can easily be packed and shipped.
-
1
Tips & Warnings
Whenever possible, pay your suppliers as soon as their products sell. You will develop stronger business credibility.
Resources
More Like This
Comments
-
Ha ha ha kch ni kar paunge tum, thanks to mr.Ram Gupta:). Aish kar lo
-
Ha ha ha kch ni kar paunge tum, thanks to mr.Ram Gupta:). Aish kar lo
-
useful information....
-
lbrandow
Oct 28, 2010
Netplus Consulting trains inventory managers and implements Fishbowl Inventory and QuickBooks for small to midsized companies
