Entrepreneurs, founders, and independent brands now live in a native commerce world where small-to-medium businesses compete against global conglomerates.We’ve put together this definitive guide to inventory management to level the playing field and help you grow your brand with speed, scalability, and smart insights.
Entrepreneurs, founders, and independent brands now live in a native commerce world where small-to-medium businesses compete against global conglomerates.We’ve put together this definitive guide to inventory management to level the playing field and help you grow your brand with speed, scalability, and smart insights.As a result, many growing businesses graduate to an inventory management app, software, or system with capabilities beyond manual databases and formulas.Tags: Business Plan Template Word DocumentSubtraction Problem SolvingWrite Academic Argument EssayJstor Research PapersBusiness Plan Pro PremierThe Of Adam Essay On Modern Thought
If you’re new to inventory, you’ll probably come across a lot of formulas that might seem confusing at first.
However, with a little bit of homework, these formulas can be very useful for keeping stock levels optimized.
As you’ll see below, there are other terms such as “decoupling inventory” and “pipeline inventory” used to describe types of stock-based on its theoretical purpose and use.
Nonetheless, physical inventory almost always falls into one of the four categories above.
Stick to an alphanumeric system for your SKUs and avoid accents and symbols that can cause formatting issues in Excel or elsewhere.
Remember that the more stock you have, the harder it is to go back and develop a naming system, so it’s best to choose one as soon as you start holding it.
Third-party logistics refers to the use of an external provider to handle part or all of your warehousing, fulfillment, shipping, or any other inventory-related operation.
Fourth-party logistics (4PL) takes this a step further by managing resources, technology, infrastructure, and full-scale supply chain solutions for businesses.
The reorder point formula answers the age-old question: When is the right time to order more stock?
Calculating your reorder point takes three steps: As we touched upon earlier, safety stock acts as an emergency buffer you can break out when it looks like you’re on the verge of selling out.