How can I stock more products without any new investment?


#1

I want to know how can I store more amount of products without any more investment.


#2

Here are a few ways you can stock more products without the need for any new investment:

  1. Establish Annual stocking policies: Figure out a maximum and minimum level of stocks and supplies that need to be kept in the warehouse.

  2. Preparation of Inventory budgets: This should be prepared well in advance before inventory is procured. Cost of materials, operational costs, carrying costs, logistics costs and other miscellaneous costs should also be included in the budget.

  3. Maintaining an inventory system: This helps keep a constant track of the quantity and value of each stocked item.

  4. Inventory turnover ratio: This is a calculation used to determine how quickly inventory is used up or ‘turned over’ in a given time period.

  5. Establishment of better purchasing procedures: In order to ensure that inventory is under control, adopt purchasing procedures that align with actual sales history and demand pattern data.

  6. ABC Analysis and Classification: Use ABC Analysis to prioritize your inventory management.A: High-value products(low sales), B: moderate-value products(moderate sales),C: low-value products(highest sales) .

  7. Consider drop shipping: Instead of having to carry inventory, and ship products yourself, the manufacturer or the wholesaler can take care of it for you.

  8. Contingency planning: Figure out where your risks are and prepare a contingency plan. Figure out what steps you will take to solve the problem and how this will affect other parts of your business.

  9. Accurate forecasting: Project your sales and plan your inventory needs by looking at things like-trends in the market, this year’s growth rate, overall economy etc.

  10. Manage relationships: It is important to have good relationships with your suppliers as that way they will be willing to work with you to solve problems.