Having a Business in Kenya can be a great money making venture. However poor stock management can see the down fall of your business. Losses can occur from theft by staff, poor stock management, poor pricing or through expired or out of market products. Being able to reduce even a few of these factors can result in significant savings . Here are five ways to improve your stock management
1. Reduce Expired or Out of Stock Items on the Shelves
Use the FIFO approach (First in First Out), this ensures that you arrange your stock as to sell what comes in first. This ensures that what is nearly expiring or is almost getting off the market is sold first.
2. Purchase a Stock Management System
A stock management system helps you to easily monitor stock movement. It is estimated that an inventory management system can pay return on investment in the first 3-6 months. There are many products in the Kenyan market, the most affordable, simple and user friendly system that i recommend now is BiasharaPOS. They have a 14 day free trial so take advantage to see if it fits your needs, if not you have nothing to lose 😉
3. Carry Out frequent stocks takes
Most retail shops do stock takes twice a year or so. The recommended frequency is at least 2 weeks to one month. This reduces loses and keep you abreast on the nature and ongoing of your business at all times. A Stock management system can help you simplify this exercise.
4. Manage Receiving and Ordering Stock
You should aim to countercheck every item with the delivery invoice. Avoid stock with short expiry windows. You should also countercheck the Purchase and Delivery Orders to ensure what you ordered is what has been delivered. You should also reduce Just in Time Ordering.
Written By Ken Ambani
Business Consultant in Kenya