Management is the key to success for all types of business. A good management can give you good sales and good profit. In big businesses, there are so many experts to manage business using advanced features of modern business management, but in small businesses, sometimes the only owner is the main decision maker or a business manager decides all the things of a business. In these cases, sometimes they are not familiar with advanced business management features. Here I discuss some advanced features of modern small business management and if you(Business owners or managers) not using yet, By using it, your business management is so well organized as well as increasing your profit and finally, your business growth is increasing more than any time before.
1. Analysis your inventory turnover: Inventory Turnover is the ratio of how many times an item is replaced or sold versus time period. A good turnover rate indicates good sales status of that item. It helps you to increase profitability and reduce holding costs.
2. Properly manage your demand forecasting: Demand forecasting is the process in which you can measure your future demand using historical data.
By using demand forecasting, you can properly manage your stocks according to your demands and finally, you can properly utilize your capital of business for getting your maximum benefit.
3. Calculating your safety stock: Safety stock is a measurement to reduce the risk of the empty stock. According to the products demands and time need to a supplier to deliver those products to ensure the stock quantity to reduce the risk of the empty stock.
Without ensuring safety stock sometimes you can't provide products according to customer demands. So you lost your sales as well as your benefits. It's also growing a negative effect of your trustworthy in the customer's mind.
4. Proper use of minimum order quantity: Minimum order quantity is the minimum quantity a supplier willing to sell. It's may vary products to products or suppliers to suppliers.
By proper using of the minimum quantity, you can properly utilize your business capitals. Proper using of it reduces unwanted stocks and holding cost and reduce the probability of empty stock.
5. Using of reorder point formula: Recorder point is a label which indicates it's the time to restock your particular products items. It is depending on your products sales quantity on average and suppliers take times to delivered products after ordering. It's the minimum amount of particular items stock keeping in hand reducing the risk of the empty stock.
6. Consignment inventory strategy: Consignment inventory is a supply chain management strategy in which a business owner store products from suppliers without paying money until the products are consumed.
It's a very important and effective business strategy for a business to go forward with the minimum cost.
7. Analysis of seasonal business: If you have seasonal products, it's important to analyze your particular items sales at a particular time. It helps to understand your business trending at different times in the year. You can realize your right demands at the right time and can take the right preparation for the right business.
8. Reconcile your business: Reconciliation is a process to check physical inventory with business records, and finally, adjust records according to physical inventory.
It's an important process of inventory management to ensure the accuracy of business records. It helps to find out any corruption of your business like employee theft or administrative cheating.
The Bottom Line: Above these advanced features of business management are very effective and help to increase your business growth. All these features you can get by using a good inventory management software. If you are not using yet I recommend using these feature and see what a business future is waiting for you.