As your company grows, so does the need for an optimized inventory system. If you're looking to expand your Barrington business, here are a few things the Barrington Area Chamber of Commerce advises you to keep in mind when it comes to inventory control.

Employing Cloud-Based Usage Management Software

As your business grows, you'll quickly realize that manual inventory management is no longer feasible. This is where cloud-based usage management software comes in. Cloud-based software allows you to track inventory levels in real time, set reorder points, and generate reports with the click of a button. Not to mention, it's easily accessible from anywhere with an internet connection.

Utilizing the FIFO Method

The FIFO method (first in, first out) is often used in businesses where inventory has a shelf life. For example, if you're in the food business, using the FIFO method ensures that customers are getting the freshest product possible. The same goes for companies that sell seasonal items; you want to make sure customers are getting the newest stock, not products that have been sitting on shelves for months.

Anticipating and Understanding Demand

In order for your inventory system to run smoothly, you need to have a good understanding of customer demand. This means being able to anticipate spikes in demand (such as during holidays) and having a plan in place to meet it. It's also important to understand why there might be sudden changes in demand. Is it due to a change in consumer trends? If so, you'll need to adjust your ordering accordingly.

Putting Quality Control First

No matter what industry you're in, quality should always be a top priority. This is especially true when it comes to inventory control. After all, if you're selling defective products, customers are not going to come back for more. That's why it's essential to have a quality control process in place before products even hit the shelves. This might include testing products yourself or sending them out to third-party testers.

A System that Monitors and Checks Stock Levels

In order for your inventory system to run efficiently, you need some way of monitoring and checking stock levels on a regular basis. This can be done manually or through the use of barcodes and scanners, whatever works best for your business. The important thing is that you have a system in place so that you can quickly and easily check stock levels and reorder when necessary.           

Keeping Your Storage Facility Organized       

A disorganized storage facility will quickly lead to problems with your inventory system. You won't be able to find what you need when you need it, items will get lost, and mistakes will be made. To avoid this, it's important to keep your facility organized from the start. This might mean hiring additional staff or investing in storage bins and racks. Whatever the case may be, taking the time to organize your facility will pay off in the long run.          

Making the Firm Run More Smoothly by Changing to an LLC        

If inventory control is becoming too much for one person (or even a team) to handle as your company grows, then changing the firm into an LLC can help make things run more smoothly. This type of legal structure can help protect personal assets and provide tax advantages. You can learn how to start an LLC in Illinois with some online research, but it’s also wise to consult with an accountant or lawyer before making any decisions regarding changing how your company is legally structured. 

Managing inventory is a major task. However, it's crucial for businesses that are looking to expand their operations. By following these tips, you can streamline your inventory process and avoid common pitfalls. Creating and maintaining an efficient inventory system is an ongoing process, but if you're proactive and stay organized, you'll be on your way to success!

The Barrington Area Chamber of Commerce is here to help your business succeed in our community and beyond. Join us today!