Good inventory management is a somewhat complex task. However, the benefits for any business, especially small businesses, are many. At the top of that list is greater efficiency and, consequently, profitability. Check out some NetSuite best practices for inventory management, which makes a company more agile and competitive.
1. Carry Out Inventories
The first step is crucial. You must physically collect all items in your inventory. During this procedure, it is essential that you take the opportunity to organize your products and separate them by type, each in a specific location. This mapping improves the movement of goods in stock and makes processes more agile.
2. Highlight All Important Information
Determining what information is relevant on your inventory items is critical. Accurately recording and documenting your inventory within NetSuite helps you make quicker decisions to positively impact the financial health of the business.
Each inventory item has a large amount of information that can be relevant for decision-making:
- Reference number
- Cost
- Manufacturer
- Category
- Location
- Validity
In addition, vendor-specific information such as the order number and any other criteria useful for your business (color, size, model, etc.) can be included.
Once this is complete you can use saved searches and dashboard reminders within NetSuite to know exactly what is in stock, what needs to be ordered, and when.
3. Pay Attention to Cost and Revenues
NetSuite inventory management is not just limited to physical control; rather, for your business to be successful, it is necessary to monitor the stock consistently, taking into account the value of its products and its turnover and profit margin.
To manage inventory in this way, it is necessary to know which product sells the most and which generates the most significant profits. Creating custom reports within NetSuite gives you insight into these data points and will help you be more profitable.
4. Monitor Your Sales, So You Never Run Out of Merchandise
Of all the problems businesses can encounter, running out of stock is one of the most dangerous. However, having a solid process for monitoring sales as it relates to inventory levels is a vital strategy for business growth, not just for controlling inventory.
Use this information along with historical buying trends to set inventory re-order levels and ensure you always have what you need on hand.
5. Manage Your Old Goods with NetSuite Inventory Management
NetSuite allows you to track and manage your inventory. But, it also provides insights into what is selling and what is not. Creating alerts and reports that provide insights into aging inventory is a great way to see a bigger picture for your business, determine future paths forward (should we continue offering certain products), and allows you to make intelligent business decisions.
With NetSuite’s inventory management coupled with its best-in-class reporting and analytics, your business can be positioned for huge revenue growth. Having the right processes in place is critical to facilitating that growth.
For questions on these, or any other inventory management tips and best practices, contact the World Synergy NetSuite management team today.
