September 2018 – Idezi Blog

92 percent of small-to-medium sized business with an inventory make the effort to track it.

In other words, almost every business is making sure that they know where their inventory is. Many SMBs still fail every year though, which means it’s not enough to track.

You have to track your inventory well. And if you don’t, your business may see some serious consequences. The way you track may decide if you stay in business or not.

But knowing how to track well can be a difficult task to start, especially if you never have before. Lucky for you, we’re experts on this topic.

In this article, we’ve combined the best inventory management techniques. Take our advice, and soon you’ll be managing your inventory like a pro.

Read on for 9 inventory management tips.

Why You Need Inventory Management Techniques

Inventory management is a crucial aspect of any business function. Without it, you may be unable to run your business well.

Inventory management makes sure that your product doesn’t spoil. When working with food or other perishable items, you have to make sure you keep an eye on your products. Otherwise, you may waste money.

It also makes sure that you don’t buy products that you won’t be able to sell later. These items that haven’t perished is what we call dead stock.

For example, imagine there is a new trend to buy a certain type of shirt for the fall. If you buy 300 of them but only sell 200, you have 100 items of dead stock.

And you might not be able to sell the rest of those shirts. This can become quite frustrating for business owners with this issue.

You can also reduce the amount of stock you have with effective management. This will clean up room for other items that you need later.

1. FIFO

FIFO stands for “first in, first out” and is a common saying in inventory management. This means that you should always sell your oldest items first.

This has many benefits for you as the seller. This makes sure that you don’t create any spoilage with old products.

It also means that you have an easier time tracking how much you need to buy of each product. When taking out the product, you’ll be able to see how long it sat on your shelf since you bought it.

For consumers, this means they always get products that are in good condition. While they may not be the newest, they’ll still have ones that haven’t gone wrong.

2. Set Stock Standards

You should also make an effort to set the standard amount of each stock you need at a time. Doing this will ensure that you never run out of the items you need.

Deciding how much you need on a regular basis may be difficult to figure out. And it will take a few weeks or months to decide.

After some time, find an average for how many sales you made of one each item. Then, inflate the average a bit for some cushion. This should be your standard.

Having your standard stock number helps you budget for your business better. For most months, you always know how much you’ll spend on inventory.

You should keep in mind that you’ll need to buy more of certain stock depending on the month. For example, you might need to buy more candy around Halloween.

A set standard also means you can delegate inventory buying to an employee. Except for special circumstances, they can do the work for you.

3. Prepare for Issues

As a business owner, you know that problems almost always will occur. And the same goes for your inventory. Preparing for inventory problems now will save you in the future.

One common problem is overbuying or underselling a product. Unless it’s perishable, you might be able to save it to sell in the future.

You may also have warehouse issues and need more room. We’ll discuss more about this in the next point, but you should be ready to purge some of your product.

With inventory, you need to have some wiggle room. While any loss is bad, you might have some in the future. Know that your gains will help even this out.

4. Redesign Your Warehouse

To make sure that you are moving the stock in an efficient manner, you should redesign your warehouse. This can take some time, but it will be worth it.

Move the items you sell most often to the front of your warehouse. Your employees will have an easier time finding what they often need.

After that, move the rest of the items from most used to least used. This is not the only system that works though.

Instead, you could create a barcode system to make finding items even easier. Like a library, employees would have to do no more than search for their item.

You could combine these two options to make the most efficient warehouse possible. Do this by correlating the barcodes with how often you use the item.

5. Use Technology!

Consider using technology to make sure you know what’s going on in your inventory. While pen and paper may work well, technology has some other perks.

Use a cloud-based system for managing your inventory. This allows all your employees to see what items you have in there at the same time.

A cloud-based system also allows authorized users to change and add information. With it, your employees will be able to make changes as soon as they know.

This helps make sure your organization doesn’t lag behind on paper. With this, you won’t even have to leave your desk to check your inventory.

Looking for More Inventory Management Techniques?

With these inventory management techniques, you should be ready to help your business. Soon you’ll see a more organized and effective warehouse.

Did you like this article? Read more on our barcode and labels blog. For more about what we do, check out our services page. And if you have any questions, feel free to contact us.

Everyone wants to make a good first impression. If you’re one of the 30+ million small business owners in the U.S., you had to make a good first impression when you met with an investor or secured a loan.

The window to make a lasting first impression is only seven seconds. If you sell a product, that means your brand’s product label has to grab someone’s attention fast.

A lot of entrepreneurs come up with crazy color schemes and wacky fonts. They grab a consumer’s attention, but not always in a positive way. So, how do you create a label that sells your product and elevates your brand?

We’re going to show you how in the step by step guide below.

Figure out Your Target Audience

If your intended customer is GenX female professionals, you need a product label design that targets that demographic. Research marketing strategies to help your product labeling attract the customer you want.

You know why your product is a must have, so express that. Tailor it to the consumer’s problem and explain in a simple, clear, and creative way how your product fills their need.

Keep your brand’s vision and authenticity in your design, but do so in a way that makes the GenX professional reach into their wallet.

Choose the Kind of Product Label

Decide on product label design based on your product and market. If you sell a food or beverage, you’ll need a nutrition/ingredient label. The same goes for the health and beauty industries.

Wraparound labels are ideal for these markets because you need to display a lot of information. Your brand’s logo design goes on the front and your mandatory information like nutrition and your barcode will be on the back.

If you haven’t applied for a GS1 Company Prefix yet, you’re going to need to do that to get a barcode. If you paper goods, you won’t need an ingredient label but you’ll still need a barcode.

Keeping your product packaging in mind, check out some label making software and see which kind of label design fits your package the best.

After you decide on the type of label you want, think about if you’d benefit from enhancements like security labels or tamper-evident tags.

Get Creative But Keep It Simple

64% of consumers say they buy a product for the first time based on its packaging. You already know you have seven seconds to make a good impression but you also need to get your brand’s message out in a clear and simple way.

During your design process, think of a few words that describe your product’s function and what you want customers to know about it. Don’t overdo it, as you don’t have enough space to list all the wonderful qualities your product has.

Use the Right Colors

When you started your company, you designed a logo and company name. Your logo will be on your label design but when you get to that step, you may realize your colors don’t express your brand’s philosophy.

Aside from black and white, blue, and red are popular colors for brand design and product labeling. But there’s “meaning” behind the colors themselves that may conflict with your product.

Did you know 60% of the companies on the Fortune 500 list use blue as the main color on their logo? It’s because blue represents confidence.

Red, represents urgency, warning, and danger. And, yes, passion. But there’s a reason clearance sales and warning signs use the color red.

Green gets used by a variety of different markets because it evokes a lot of different emotions. Financial companies use it to express money and health food companies use it for vitality.

A few other, lesser-used colors to consider are:

Orange – Youthful, energy, adventure
Yellow – Happiness, creativity
Purple – Luxury, femininity, opulence

Again, the point is to stand out but not be too busy. Confusion or clutter won’t attract any new customer.

You also need to consider the color of your package. If it’s white, any color will work but if it’s clear, what color is the product itself? If it’s green, using orange on your label won’t complement it so pick a color that does.

Typographic Pairing Is Important

When you create a label, you’ll find out how little space you actually have to work with. This is where using typographic pairing comes in.

Designers use typographic pairing to get out important info by pairing different fonts. For example, you’ve seen a product in the grocery store that has “Fresh” in a larger bolder font than the product description.

You want to keep this to two, three max, fonts. Using more tends to get confusing for the consumer because it’s visual overload.

Maximize the White Space

A white label will be more cost-effective than a pink one but it serves another purpose. You can use white as emphasis. Like typographic pairing, white separates and distinguishes different information.

It’s a minimalist design strategy, but it works because it’s uncluttered and clean. If your logo design is bright orange, white will tone it down, while still standing out.

Decorate But Don’t Overdo It

If you decide you prefer a white label, consider illustrations that enhance the label design without cluttering it.

In the beauty industry, accents that express feelings of warmth are popular. Organic food companies add fruit or veggie illustrations on their labels.

Consumers don’t need to see an illustration on a product label to know what they’re getting but it does add a nice detail.

Keep in mind you’ll need a QR code/UPC on your label so be careful when you’re thinking about using black accents or elements on the back. Don’t feel pressured into using decorations, decorations, or accents. It’s about your brand’s aesthetic and creating a label you’re proud of!

We’ll Help You Face Common Challenges Head On

As you can see, when it comes to product labels, having a simple design is key. If you design it right, you’ll stand out in a crowded marketplace and still stay true to your brand’s message.

If you’d like to learn about other business challenges like inventory control visit our blog that details mistakes you need to avoid. Contact us for information on our services or if you have any questions.