Inventory Management: Definition and Best Practices
Inventory, in simple terms, is the list of goods in stock. For any organization, it is crucial that they keep tabs on the levels of their inventory at any given point in time. And that they keep their inventory in line with the present and projected demand for their products. That is because, if the inventory levels are extremely low, their business could become a standstill. On the other hand, if there is too much inventory, there are chances of spoilage.
Therefore, it is very critical that businesses of any size have good Inventory Management practices in place. But we need tools to achieve this. In the earlier days, the process involved a person taking stock of products at regular intervals using just a pen and paper. And then reconcile the numbers with the previous data. It was a challenge, as it involved plenty of manual effort. Fortunately, today, we can establish a process using the simplest of tools available such as Google Sheets.
- Real-time Inventory
- Minimize Inventory costs
- Meeting customer demand
- Reduce the waste of products and time
Managing inventory can be a daunting and time-consuming task. The main focus of good inventory management is simply knowing what is in your stock. Being aware not only boosts your company’s efficiency but also ensures that you are able to react to ever-changing customer demands. This requires very good planning, but, as mentioned before, most of all the right tools that help us maintain the overview of our stock that can be so volatile.
Realizing the Inventory Management setup
A simple yet effective Inventory Management system is the one in which we can integrate Inventory with that of Sales. This will give us real-time inventory data, that helps us keep up with the proceedings. For example, we start with the whole list of inventories today. We set up our spreadsheets so that any sale that we make on any of our products, will subtract the corresponding number of products from the inventory. Eventually, we come to know which of the products need replenishment as they approach the minimum threshold. Accordingly, we can place a new order to replenish these completed stocks. As soon as they arrive in the warehouse/store, we add these up to the inventory. And this inventory management process is already self-sustaining.
Accomplishing this process setup from scratch can take significant effort. Especially when the inventory database is large, and the organization is spread across multiple locations. In such scenarios, we need to integrate multiple spreadsheets, which can be a challenge to a user that is uninformed. Luckily, we don’t have to reinvent the wheel, as there are much easier alternatives like ready-to-use templates that can easily be customized to our own needs. If you are looking for the best tool that will help you personally with the management of your inventory, read through our blog post where we listed the Top 5 free Google Sheets inventory templates in Google Sheets. Or try Sheetgo’s premium Inventory management template that allows daily monitoring of the available stock and this in collaboration with other team members, by clicking the button below.
You are all set! 🙂
Good luck finding just the right fit to manage your Inventory!