Bad news: Without efficient inventory management, you may find that your best efforts in marketing strategies, product development, and sales will not lead to substantial success.
Good news: Digital solutions can simplify inventory management, making it more efficient and less costly. This can be achieved with just a click of a button!
In Malaysia, digital inventory management tools have greatly contributed to the RM138 billion value of the wholesale and retail trade. In this article, we’ll explore valuable inventory management tools and tips for you to bring your business to new heights!
1. Conduct Regular Audits
We understand: conducting regular inventory audits can be a time-consuming task that is prone to human error (no one wants to receive an angry customer call due to incorrect information about product availability).
To avoid this, use inventory management software to reconcile your stock levels. This helps identify discrepancies and prevents overstocking or under stocking issues that can lead to financial losses.
2. Categorise Your Products
In Malaysia, it is important to categorise your products based on factors such as demand, seasonality, and type to accommodate the various festivities and cultural practices such as Chinese New Year, Hari Raya and Deepavali.
The last thing you want is for your customers to exit your page because they couldn’t easily find what they want based on the factors above. Product segmentation allows you to prioritise which items to reorder, helping you keep your shelves fully stocked with the best-selling products at any given time.
3. Forecast Demand Accurately
The scariest words for wholesalers: out of stock.
Accurately predicting demand helps reduce the chances of experiencing shortages in inventory. Leverage historical data, market trends, and seasonality to anticipate future demand and plan your orders accordingly.
4. Implement Just-in-Time (JIT) Inventory
JIT inventory management minimises holding costs by ordering goods precisely when required. Utilise tools with real-time marketplace insights and order tracking function to help you streamline this process by allowing you to place orders promptly when you receive requests from your buyers.
This will help you direct your cost to what matters most at the moment, and avoid overstocking on goods that are hard to sell in the long run.
5. Set Reorder Points
It is important to set minimum and maximum inventory levels for each product, regardless of the wholesale approach you use. Integrate software that will detect when your stock reaches the reorder point in your inventory system for efficient replenishment.
6. Develop Strong Supplier Relationships
Building strong relationships can help you negotiate favorable terms and ensure a steady supply of products. Collaboration between suppliers and wholesalers is important for long-term business growth and market expansions.
7. Monitor Slow-Moving Items
Identify slow-moving or obsolete products and take action promptly. Use data analytics tools to identify products that require attention. This will help you make informed decisions on whether to discount, liquidate, or discontinue them.
How Dropee Can Help:
Dropee is your trusted partner in implementing these inventory management strategies. With its user-friendly platform, you can:
- Access a vast network of suppliers and products, making it easier to source and replenish inventory.
- Utilise real-time data and analytics to monitor stock levels and make informed decisions.
- Streamline the procurement process with automated order management and tracking.
- Collaborate with suppliers and buyers on a single platform, enhancing communication and reducing order lead times.
- Leverage Dropee’s insights to identify market trends and demand patterns, helping you forecast with greater accuracy.
By implementing these tips and leveraging Dropee’s solutions, you can streamline your inventory, reduce costs, and boost profitability in today’s competitive B2B marketplace. Start exploring Dropee’s features today and take your inventory management to the next level. Schedule a free demo here.
Related reading: Using an Online Marketplace to Grow Your Wholesale Business