New ATF-Compliant DSMT Log & Backup Features in Finale Inventory
We are excited to introduce new features in Finale Inventory that ensure your compliance with the latest ATF Ruling 2023-1, which mandates stricter requirements for maintaining electronic records for explosives. Meet the ATF Compliance Requirements with Finale To support Federal Explosives Licensees and Permit Holders (FEL/Ps) in meeting 27 CFR Part 555, Subpart G, we’ve…
Chapter 11: The Fast, Slow and Non-Moving (FSN) Method
Fast, slow and nonmoving (FSN) inventory analysis is often used with ABC analysis to help inventory managers prioritize their inventory control techniques and resources. Fast-moving inventory may require more attention than slow-moving inventory, just as high-value products may require more attention than low-value stock. By first prioritizing how you will dedicate your attention and resources, you can…
Chapter 10: The Economic Order Quantity (EOQ) Method
When determining a reordering schedule, you can often save warehousing space by reordering more often in smaller quantities. However, reordering more often leads to higher logistics costs while saving on storage costs. Increasing storage costs will likewise lower logistics costs. The economic order quantity (EOQ) formula helps you balance these two costs to find the…
Chapter 9: Backordering
Another one of the essential inventory management techniques in operations management is backordering. What Is Backordering? Backordering occurs when your company decides to accept orders and receive payments for products that are out of stock. Essentially, this means you order a product only after a customer places an order for it. Though backordering can be financially beneficial,…
Chapter 8: The Just-in-Time (JIT) Method
The just-in-time (JIT) inventory strategy is one of the most famous modern inventory management techniques. It’s a production management philosophy developed and popularized by Toyota focused on eliminating waste, inconsistencies and unnecessary requirements. While developed as a production method, it has broad applications for manufacturing plants, warehouses and any company involved in inventory management. What Is the…
Chapter 7: Average Cost Inventory Accounting
One of the most important aspects of inventory management is accounting. For most e-commerce sellers and physical retailers, inventory represents the company’s biggest asset. Thus, tracking your inventory purchasing costs accurately is crucial for monitoring financial health and reporting your financials for tax purposes. Average costing is the best accounting method to help your busy business stay…
Chapter 6: Accurate Forecasting
While it’s impossible to predict the future, you can get very close with reliable forecasting methods. A 2020 survey revealed that 40% of retailers plan on managing their demand-supply using real-time data, and 45% said the same with inventory replenishment. Another survey revealed that demand forecasting is one of the top three most popular investments among retail and consumer…
Chapter 5: Prioritizing With ABC Inventory Analysis
One of the best modern inventory management techniques is using ABC analysis to classify and prioritize your inventory. By focusing your attention on your most important stock first, your business can plan for success. You can use ABC analysis to determine how you allocate inventory staff and resources, organize your warehouse and order inventory. What Is ABC…
Chapter 4: Regular Auditing
In retail and warehouse settings, inventory accuracy is often relatively low. Improving inventory accuracy can help increase sales. Because keeping accurate inventory records is so challenging and critical to success, frequent inventory audits are essential. What Is an Inventory Audit and Why Is it Important? An inventory audit is a way to check that your…
Chapter 3: Contingency Planning
Having a plan B for your worst-case scenario makes it easier for you to react quickly to problems as they arise. With a well-formed contingency plan in place, your business can quickly resolve inventory challenges such as overstocking, understocking, overselling and lack of warehouse space. Potential Issues in Inventory Management In the world of e-commerce…
Chapter 2: Relationship Management
Improving supplier relationships is the key to better inventory control. Only 13% of businesses have a mature supplier relationship management system in place. Strategically improving supplier relationship management can generate 23%-46% more value for your company. Strong supplier relationships often lead to better flexibility and reliability from suppliers. You’ll gain leverage to negotiate down minimum quantities and pricing…
Inventory Management Techniques in Operations Management
Inventory Management Techniques to Streamline Your Operations Various inventory management techniques in operations management are available to you. The different techniques, tools and methods vary in complexity, time commitment and accuracy. Many of these strategies can help you optimize your stock levels and reordering schedules based on mathematical formulas. With so many possible approaches to improve…
What Finale Can Do for You
What Finale Can Do for You Inventory is essentially another word for money. The products you have on stock are items you intend to sell or turn into finished goods. These items are the backbone of your company and the reason customers visit your online store. Keeping track of your inventory is vital to understanding…
Chapter 5: Choosing an Order Fulfillment Method for eCommerce
Order fulfillment is the process of getting your products to your customers. It involves three key steps: receiving inventory, processing customers’ orders and shipping orders to customers. You can fulfill orders in many different ways, including shipping items directly from your warehouse or working with a third-party fulfillment service. Regardless, your fulfillment method should enable…
Chapter 4: How to Start an Inventory Management System for Your Online Business
Inventory management can seem intimidating, especially if you just started an eCommerce business or have recently experienced growth. It’s understandable — effective inventory management requires many different components, including demand forecasting, replenishment strategies and adequately trained employees. Although it’s an involved process, today’s business owners have access to digital tools that make inventory management much…
Chapter 3: The Inventory Management Process
When do you need to start managing your inventory? The moment your inventory arrives at the receiving dock, it’s time to keep track. To make things easier, you can use a barcode scanner to enter the shipment into your inventory management system accurately. In other words, you don’t have to spend a lot of time manually entering items…
Chapter 2: Top Inventory Management Methods
eCommerce inventory management systems are ways to track inventory and sales. These methods are designed to help businesses stay organized and manage their inventory better, enabling a more streamlined operation. However, the same system won’t work for every company. Business owners must consider their unique needs when choosing an inventory management method. For example, an eCommerce store that only…
Your Guide to eCommerce Inventory Management
When a customer visits your online store, they expect several things to happen. First, they assume the item they want will be in stock. Next, they expect the item to arrive at their home or business quickly. If either of these steps goes wrong, you’ll gain a dissatisfied customer or lose a profitable one. How…