What Are Some Tips for Tool Inventory Management?


Quick Answer

Managing an inventory of tools requires setting up a basic retail inventory model involving managing the amount of tools in stock, tracking inventory and monitoring what sells best. Companies can use inventory software for tracking and reporting, or develop a simple inventory card system. Analyzing product supply and fixing existing tool supply problems might be necessary to improve the customer experience.

Continue Reading
Related Videos

Full Answer

Overstocking shelves with too much inventory is a common mistake, and an oversupply of tools sitting on warehouse shelves drains the business budget. Fixing this problem requires determining how many units of each type of tool sold in the past 12 months. This data is used to forecast the amount of tools to keep in stock each quarter. If sales are heaviest during seasonal periods but low other periods, inventory levels should match customer buying activity. Accurate inventory counts are important for determining how much product is sitting on shelves ready to meet customer demand.

One inventory management method involves recording the item codes on sales tickets and transferring that information to inventory cards each day. Implementing bar code scanning and using cycle counting is a good way to keep track of product numbers. Slow-moving tool products should go on sale to clear away storage space for better-selling items. Spreadsheet software programs are ideal for simple inventory management systems.

Learn more about Managing a Business

Related Questions