When keeping up with packaging supplies, it is important to use strong inventory management techniques to ensure everything is in order. But, there are many ways to manage product inventory, so how do you know which one is right for your company? It is a hard decision to make but first, you need to know the techniques available out there.
Below are some inventory management techniques you can consider for your packaging supplies:
Ordering in Bulk
Bulk ordering will help cut packaging costs. But, it requires getting huge quantities of an item all at once. Although this inventory management technique might see a great option, you must carefully think about how quickly you can move through your inventory before you order a packaging or shipping product in bulk.
While buying in bulk makes sure you have lots of supplies for a good price, it can cause you to lose money in the long run if you fail to think in advance. Should your product or service needs change in the future, you may need different packaging. Thus, if you have already ordered everything in bulk beforehand, you will deal with both wastes and losses.
Buying the Bare Minimum
Vendors have a threshold you need to meet to complete an order. This inventory management technique lets you get the lowest quantity possible. This can be a good option if your business doesn’t need supplies as often or has limited warehouse storage space. But, if you own a bigger company or you expect huge growth in the near future, you may deplete your supplies before you can place an order. For this need, a storage ready to go solution might be best for you. With this approach, you can order any desired volume of packaging supplies and have them kept at your supplier’s warehouse.
Ordering Supplies when you Need Them
With this inventory management technique, you order packaging supplies a few days ahead when you would run out. This helps in lowering the amount of stock kept on hand and can eradicate stocks that sit on shelves for months on end. But, for this strategy, you need somebody who can seriously ensure things arrive on time.
Considering Continuous Inventory Management
A perpetual inventory management system tracks when something sells, when the inventory for a sale is shipped, and when new stock arrives. This can be successfully run by having barcodes for scanning items into the system and a point-of-sale tracker that reports if something must be shipped out.