For most door, frame and hardware distributors inventory management remains an essential key to success. According to Investopedia inventory management is the “process of ordering, storing, using, and selling a company’s inventory”, which includes administration of materials, products, and warehouse processes. There are two areas of inventory management that can become an issue: maintaining too much product or too carrying too little inventory.
Large companies spend tremendous amounts of money on technology and software tools to analyze and determine optimal inventory levels. Software for Hardware door distributors often integrate their SFH system to an ERP (Enterprise Resource Planning) software to monitor and determine ideal inventory levels. Contract ERP, NetSuite, BizTrack, Sage100, Microsoft Dynamics, are all tools that can be integrated to SFH.
Another need for many distributors is optimizing and minimizing the needed warehouse space. Square footage equals monthly expense, reducing warehouse space and reducing monthly expenses and increasing productivity.
Many businesses, large and small, choose to implement software to assist in inventory management processes. Project management inventory software, similar to Software for Hardware, allows for efficient supply and demand operations. SquareUp reported that using inventory software will help forecast demand, prevent product and production shortages, along with keeping track of stock in real time.
In some cases, your door, frame and hardware business may not have inventory management software or be ready to invest into software. There are other methods that can assist without using software. A crucial technique is accurately forecasting projected sales and market trends. Easier said than done, but, with careful analysis most companies can improve their forecasting accuracy.
Another method to improve inventory management is the First In, First Out approach. This approach will function just as it sounds, the products that have been on the shelf the longest should be the first items out. This method will assist in determining low-turn stock, or material/products that are not being sold. Low-turn door, frame and hardware stock can become problematic if not detected, many businesses lose money due to oversupply of inventory.
James McCormack Customer Relations Manager Software for Hardware LLC, is based in Atlanta, GA. You can reach James at email@example.com