Do You know what’s that one thing that can make your business grow, or take it to a standstill? It’s managing your inventory in the best possible way. How are you going to provide your customers with repairs and offer them their desired accessories when you don’t have enough in stock?
So, for repair businesses, streamlining your inventory is crucial. In fact, it is the backbone of any store, whether they fix phones, computers, watches, etc. However, it is quite challenging as you have a lot on your plate. Also, there are hundreds and thousands of repair products and accessories. And you cannot keep track of everything manually.
In this article, we will share the ultimate tips to manage inventory at your repair shops. In addition, we will discuss how shop inventory management software can help you with the process. Stay with us.
1. Categorize Your Inventory
This is perhaps one of the easiest and most effective ways to manage your inventory better. It is basically rearranging your stock according to the usage, sales, and demand. For instance, you can categorize the stock based on factors including
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Pricing
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Demand
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Monthly sales
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Importance
You can better understand this with an example. Let’s say a customer visits your shop and wants a back cover for their phone and protection film for their laptop. In the same way, you experience daily that most customers look for screen protectors and USBs whenever they come.
So, based on demand, you can order these types of accessories more instead of having fewer demanding products. Though, you must also have those items as well because you never know what the customer is looking to buy. Along with that, you can consider using a labeling system. This way, you can organize the retrieval process.
Also, you must equip your lab with shop inventory management software. It will automatically notify you whenever you are running out of stock. Thus, you can timely reorder products, accessories, and repair parts from your desired vendors, avoiding the chances of losing sales opportunities.
2. FIFO AND LIFO
As a repair shop owner, if you have a large quantity of inventory, you must have heard the term “FIFO and LIFO.” They are one of the best modern methods to organize your inventory. So, what are these methods?
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FIFO (First in, first out): FIFO means you should sell the products and items that you bought first. For example, you bought chargers for devices like Samsung, iPhone, and Google. Your approach should be to first sell these chargers and then ask customers if they need something else or not. For that, you can showcase the first bought items on the shelves so your customers can know about them.
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LIFO (Last in, first out): Contrary to FIFO, LIFO is helpful when you need to calculate the cost of products sold. This method is most helpful during the holiday season or when you want to offer discounts and promotions. For instance, you can sell the latest items you bought. Then you should try to sell the stock you bought a few weeks ago.
To make the process even smoother, you must use repair shop inventory management software. It allows you to transfer inventory between stores and connect with your desired suppliers and vendors. This way, you can ensure your customers get the best quality products and keep visiting you again and again.
3. Demand Forecasting
Demand forecasting holds a lot of importance when it comes to inventory management. Specifically, for repair business owners like you, it is important to keep your inventory updated. For this, you can use ongoing trends and historical data. It will ensure that you can predict future demands.
This is one of the inventory management best practices you can adopt. For instance, using your software for stock management, you can see which repair accessories you sold last year. Or what type of repair services you offered in the last quarter? Also, you can adjust your inventory levels to avoid overstocking and understocking issues.
4. Do Regular Audits
Lastly, you need to do regular audits for your business. Especially if you own multiple stores. Regular audits will also help you identify any discrepancies and slow-moving stock.
Moreover, you should hire an experienced supply chain manager who has years of hands-on experience. So that you can ensure there are no errors and that your inventory remains optimized.
Final Words
Inventory management is no easy task. As we have discussed earlier, if you don’t have in stock what your customers look for, you can lose them. Therefore, you must follow these practices as they will help you streamline the entire process. Additionally, equip your store with top-notch software that can help you automate this whole thing, ensuring accuracy. Hopefully, you enjoyed reading this post. If you have queries or concerns, let us know by commenting below.
