Implement ABC analysis to categorize your inventory based on consumption value. Focus on high-value items (A category) for tighter control, using just-in-time ordering strategies to minimize storage costs and spoilage.
Optimize Your Ordering Process
- Set clear reorder points using historical data and forecast demand. A 10% buffer for unexpected surges can prevent stockouts. Use a reliable inventory management system. Track expiry dates diligently; automate alerts for nearing expiration. Consider using barcodes/QR codes for faster tracking. Negotiate favorable payment terms with suppliers to optimize cash flow. Explore bulk discounts to reduce per-unit costs, but carefully consider storage capacity and potential waste.
Reduce Waste and Spoilage
First-In, First-Out (FIFO) method for managing shelf life. This system minimizes the risk of expired products. Regular stock rotation and visual inspection. Damaged or nearing-expiration items should be identified promptly and handled accordingly (e. g., discounted sales, donation). Invest in proper storage conditions. Maintain consistent temperature and humidity levels for temperature-sensitive medications.
Analyze and Refine
Regularly review inventory reports. Identify slow-moving items and adjust ordering quantities or explore alternative marketing strategies to improve sales. Analyze data to pinpoint areas for improvement in your ordering and storage processes.
Employ Predictive Analytics
Use historical sales data and predictive analytics tools to forecast demand more accurately. This allows for more precise ordering, reducing overstocking and minimizing waste.
