Inventory management

Effective inventory management is critical for the success of any business that deals with physical goods. By using the right techniques and technologies, companies can maintain the right balance of inventory, minimise costs, and ensure customer satisfaction. Inventory management is the process of overseeing and controlling the ordering, storage, and use of a company’s inventory, which includes raw materials, components, and finished products. Effective inventory management is essential for ensuring that a business maintains the optimal level of stock to meet customer demand while minimising costs.

Books:

1. Inventory Management Explained: A focus on Forecasting, Lot Sizing, Safety Stock, and Ordering Systems by David Piasecki – This book provides a thorough explanation of various inventory management concepts and techniques. It is highly practical and includes detailed discussions on forecasting, lot sizing, safety stock, and ordering systems.
2. Essentials of Inventory Management by Max Muller – The book emphasizes that inventory management is more than just stock control. It’s about striking a balance between meeting customer demand and keeping overhead costs minimal.
3. Warehouse Management: A Complete Guide to Improving Efficiency and Minimizing Costs in the Modern Warehouse by Gwynne Richards – Modern warehouses are capitalising on cutting-edge technologies, new operating models and innovative practices to maximize their role in the wider supply chain. Understand how to successfully manage these warehouses with this bestselling guide.
4. Lean Thinking: Banish Waste and Create Wealth in Your Corporation by James Womack and Daniel Jones – While not solely focused on inventory management, this book provides valuable insights into lean principles and their impact on inventory reduction and efficiency.

Guides:

1. Shopify’s guide to inventory management: everything you need to know – This Shopify guide on inventory management provides a comprehensive overview of best practices for retailers. It covers key topics such as tracking inventory levels, understanding inventory costs, and using various methods like just-in-time and ABC analysis. The guide also discusses the importance of accurate inventory management for preventing stockouts and overstocking, and how integrating inventory management software can streamline operations.
2. How to manage inventory effectively – Provides a specific step-by-step guide to managing your inventory, creating internal systems and using forecasting. Also highlights some of the key tools to get started with.
3. Just-in-time inventory defined guide – JIT requires a reliable supply chain and accurate forecasting to avoid stockouts. Companies that use JIT can improve quality and reduce lead times. This comprehensive guide discusses what JIT is and the benefits and drawbacks of using it.
4. Inventory optimisation guide – This is a guide highlighting inventory optimisation for online retailers. It discusses what inventory optimisation is and the benefits of using it, and also details several techniques to achieve inventory optimisation.

Articles:

1. A beginner’s guide to Just-in-Time (JIT) inventory management – Learn more about the benefits of JIT, such as cost savings and improved efficiency, this article also addresses the risks, including supply chain disruptions. Explore JIT’s origins with Toyota and its application in various industries.
2. Inventory control strategies to maximise profits – Mailchimp provides a comprehensive overview of inventory control, discussing its importance, strategies, and best practices for effective management.
3. What is inventory management? – Read about key components including inventory visibility, accurate ordering, and efficient storage. Techniques such as periodic, bar code, and RFID inventory management are discussed. The article also highlights the future role of AI, IoT, blockchain, and quantum computing in enhancing inventory management.
4. Inventory management techniques every online business needs to know – BigCommerce explains its critical role in e-commerce, outlining various techniques to manage stock effectively. Key methods include Economic Order Quantity (EOQ), Just-in-Time (JIT), ABC analysis, and safety stock.

Podcasts:

1. The Inventory Professional – This podcast focuses on the latest trends and best practices in inventory management.
2. Secret Life of Inventory – This podcast dives deep into the world of inventory management, with a focus on helping small businesses succeed.
3. The Logistics of Logistics – This podcast covers a wide range of logistics topics, including inventory management.
4. The Inventory Genius Podcast – This podcast is hosted by Ciara Stockeland, a fractional CFO and profit strategist who helps businesses improve their inventory management.
5. MRPeasy Manufacturing Podcast – This podcast is a great resource for manufacturers, with a focus on inventory management and other ERP topics.
6. Asset Champion Podcast – This podcast focuses on physical asset management, which includes inventory management.

Tools:

1. Xero – Xero’s inventory management features provide basic functionality for small and medium-sized businesses, which can later be integrated with specific inventory software solutions.
2. Sage – Sage inventory management software is designed to help businesses efficiently track, manage, and optimise their inventory. It offers features like real-time inventory tracking, automated reordering, stock level monitoring, and comprehensive reporting.
3. Netstock – Netstock is an inventory management software that helps businesses optimize their stock levels, reduce excess inventory, and avoid stockouts. Key features include demand forecasting, order scheduling, and real-time analytics. It integrates with various ERP systems, providing insights to improve inventory planning and decision-making.
4. NetSuite – NetSuite’s inventory management software offers a robust suite of features designed to help businesses streamline operations, optimise inventory levels, and improve overall supply chain efficiency.
5. EazyStock – EazyStock is a cloud-based inventory optimisation software designed to integrate with existing business systems like ERPs. It automates tasks and improves on manual inventory management processes.

Inventory management is critical for startup and scale up businesses, as inventory is often a significant investment, especially those dealing with physical products.  Inefficient inventory management can tie up valuable cash that could be used for other purposes, like marketing, research, or hiring. By having the right amount of stock, startups can avoid excessive spending and free up cash for growth. Good inventory management practices can streamline operations and boost productivity, as well as keeping customers happy.  Overall, strong inventory management helps startups lay the foundation for future growth.