Regardless of their size and industry, all businesses rely on sales for progress. Organizations invest millions into hiring an efficient workforce, developing marketing strategies, and adopting top-notch technologies merely to enhance their sales. Thus, no business would want to take any risk that would affect its sales.
Inventory is perhaps the most valuable asset for any organization as sales depend on ensuring consistent product quality. Thus, inventory management is critical for your company’s overall business health and reputation. Amassing a manageable inventory that will support the desired outcomes is essential to keep your business on the road to prosperity.
Perishable and Non-perishable Inventory
Depending on the nature of the business, organizations have either perishable or long-lasting inventory or sometimes both. A perishable inventory comprises goods prone to spoilage or shorter shelf life, such as food items, various medicines, and cosmetics. Comparatively, non-perishable inventories consist of things with a relatively long shelf life, for instance, hardware, canned goods, automobiles, etc.
However, this distinction goes beyond shelf life and fragility. Often, inventories are at risk because of the continued advancements and modifications in various industries regularly. Hoarding up even non-perishable items could leave you with many unsold goods that either has lost their value or have become worthless. It is particularly true for businesses dealing with technological products, as consumers’ preferences keep changing with the passing time.
Let us look at some ways that will help you protect your business’s inventory from damage and other types of security threats.
1 – Opt for Convenient Storage System
Whether you deal with dry goods or sell power equipment, your goods will remain safe as long as you follow inventory storage rules. These rules include proper storage conditions for each category of goods to ensure their long life. For instance, if your company is in Montgomery, storage units in Montgomery AL, provide temperature settings to sustain particular food or pharmaceutical items. You will also find machinery items and sensitive heavy equipment with advanced safety locks installed to eliminate the risk of accidents or damage to the inventory. Ensure you adhere to inventory management rules. It will ensure smooth business operations by promoting the hassle-free movement of items.
2 – Ensure Appropriate Handling
Most of the time, inventory gets damaged due to negligence and mishandling from the staff or the inventory management department. Without a proper inventory, a business cannot thrive. Mishandled goods often get damaged to the extent that renders them unsellable. It could nudge your company into deep crises that no business owner would want. Appropriate handling does not only apply to the movement of the goods to and from the storage room. It includes proper storage and display of the products categorically to minimize the chances of damage. If your business makes sales through retail stores, hire trained representatives and sales-people who will ensure that the customers do not go near fragile or perishable items.
3 – Look for Obsolete Inventory
Having outdated products in your inventory will put you at a greater risk than anything else could. Stocking up on obsolete goods in your business inventory will only collect the dust in your production area and hold no value to your organization. Decide to part with such items by either discarding them, reselling them at a lower price or as complementary products, or recycling. It would release space for more goods in your inventory and provide you with a chance to experiment with new developments within your market.
4 – Make Security a Priority
Retail businesses are always faced with threats such as theft and shoplifting. Business owners often notice a deficit in sales compared to the number of products stated in the inventory books. Business owners must implement security measures such as alarms and security cameras inside the stores and storage units. Another way to ensure your business inventory’s security is to employ representatives to attend to customers, reducing the risk of product damage or theft.
Offsetting a business without proper inventory is as good as a limping horse. However, when you store goods, you have a responsibility to manage them effectively and ensure their security. Even the smallest mistakes in inventory management can destroy the entire stock in either protection or conservancy. Failure to protect the inventory will put your business at stake, and you run the risk of costly losses. Although some multiple backups and insurances might recoup the loss in case of damage, nothing can recover your brand’s image among your clientele.