how to keep track of inventory for small business

Creating a simple inventory system can reduce weekly workload and free up time for more important tasks. Essentially, this rule suggests that companies should identify those top-performing products and emphasise them over slower sellers in order to increase sales. If you then favour higher-margin products within that 20%, you’ll likely optimise your inventory for both volume and profitability.

  • Nonetheless, even if an inventory management software tool is difficult to use, business owners should make sure that they are not left alone if they have any issues and need some assistance.
  • If you have an unreliable supplier — say they’re late on their deliveries or short with orders — this can cause havoc on your inventory and its systems.
  • While your inventory management system plays a significant role here, so will your staff.
  • When managing your inventory it’s essential your business has access to key bits of information, at any given time.
  • From storing products to keeping track of stock levels, there are many factors to consider when it comes to effective inventory management.
  • These factors should be calculated and considered before deciding which inventory management system to opt for.

By utilizing the BrightPearl order management system’s services, businesses can take up more orders without employing extra staff for order fulfillment. BrightPearl automates order fulfillment, inventory allocation, delivery process, and accounting. Now, NetSuite tracking software for small business management supports such businesses by keeping track of inventory and updating all warehouses about inventory status. No business can afford its human resources to learn by experimenting with its valuable customers.


If your supply chain costs are high, it can reduce your profit margins. It is important to understand that you need to optimize your supply chains and bring the costs down in order to improve your profits. The supply chain costs for industrial suppliers is usually even higher than 9%, which is why if they can manage to bring it down to 7 or 6%, they will immediately double their profits. The businesses that have worked on optimizing their supply chains have already recorded a massive boost in their profits and savings. The lockdowns and restrictions caused countless supply chain disruptions and delays. If you cannot get your stock on time, you fail to deliver orders to your customers on time.

These software solutions help automate many processes related to inventory management and makes all operations much more efficient. It is crucial for every business to have full visibility when it comes to their supply chain. Complete visibility regarding your supply chain and inventory management operations can help you track your inventory better and know where and how your goods are moving. Having visibility for your supply chain can help you track all operations and make better decisions for your business. Only 6% of businesses have full visibility when it comes to their supply chain, which can also explain the high rate of inaccuracies regarding inventory and supply chain.

Invest in inventory management software

Daily checks are carried out on receipt and delivery of materials and stores, by implementing a mechanism for perpetual inventory management. With that, you can also sell it to other businesses that are your contemporaries within the industry. In all, building a custom IMS for your company gives you more control over managing your inventory, database, assets, logistics, and so on.

how to keep track of inventory for small business

We have included a free easy-to-use Excel stock sheet at the end of this article. Other features include forecast reporting and analytics to help you strategise, plan, and execute retail projects. It also comes with customised labelling and package lists, EDI compliance, and multi-retailer support. To be considered for this list, tools had to have a minimum of 20 reviews over the last year and a minimum overall user rating of 4/5 over this period. It is a no-brainer, but when you have a lot of orders, it’s easy to get ahead of yourself and overlook your oldest ones.

Reducing supply chain costs from 9% to 4% can double profits (Zippa,

Automated tracking is especially useful in the event of an unexpected delay. The biggest eCommerce players all offer order tracking, and with good reason. Here are just a few examples of the kinds of things your business may need to track. You need to be on construction bookkeeping top of it from the moment the stock reaches your warehouse or backroom, to the point at which it is sold, as well as when you make orders and re-stock. Accurate reporting and forecasting work hand-in-hand to help make a successful business run smoothly.

What is the easiest way to keep track of inventory?

Well, barcodes are the most effective method for tracking inventory. It is a specific number written on each product packing, once you scan it you get all the information related to that item. It is vital to keep information track of the outgoing information of the stock as well as to have updates on the stock levels.