Congratulations! You survived peak season and made it to the start of what is sure to be an exciting and somewhat unpredictable year. What is not so unpredictable is the likely state of your current inventory, which is probably disorganized, inaccurate, and messy. As products flow quickly off your shelves during peak season, and back in after the rush, there are likely lots of places where you’ll want to focus your attention to get your inventory back on track to set the stage for a great 2023. Let’s talk a bit about that.
Clean Up Your Warehouse
Getting your inventory back on track starts with clean up. Taking a close look at how your inventory is currently racked and organized will help you set the stage for more efficient picking when it gets busy. By moving your fast-moving inventory towards accessible locations, your team can pick orders more quickly and efficiently. This means less movement, fewer picking errors and most importantly, fewer injuries. When replenishing or re-organizing inventory, keep items that sell together, near each other. This is also a good time to move seasonal inventory that is not selling towards the back. Heavy items that are harder to lift should go on the floor, while lighter items can sit on shelves. Put some thought into how your team will move around the warehouse and make the necessary inventory changes during the off-season.
Use this time to get smart about your space by consolidating inventory. I am willing to bet if you look at your racks, there are a few bin locations that have nothing in them, or you have mixed pallets that could be re-organized. Think about how you can best use that space, while also planning for new, inbound inventory. Keep some space open for new items so you don't have to scramble to find a place for them later. Trust me, you'll thank yourself for taking a few extra minutes to organize now.
What if you don’t have any available space? Now would be a good time to look for 3PLs or other partners who can take on your overflow storage, offer you additional fulfillment capacity, or new geographies as you scale your business this year.
Cycle Counting: Stay on Top of Your Product
Now we are organized. But along the way, we found 200 more sweaters than we thought we had. During the early weeks of the year, this is not at all uncommon. While many warehouses use downtimes in shipping to do a full inventory count, you may prefer cycle counting. This allows you to count your inventory in sections, without having to completely shut down your operations. This means you can keep your warehouse running smoothly, while keeping an accurate count of your inventory. By continuously counting your inventory, you can be confident that you’re always on top of your products and not left with unexpected surprises at the end of the year.
Close Out Product: Move Inventory Quickly and Generate Cash Along the Way
Overstocked or sitting on obsolete inventory? Start thinking about items that aren’t selling or that you have way too much of. Closeout buyers should be knocking at your door right about now, and if they aren’t, a simple Google search for “Closeout Buyers” is a great place to start. Consider hosting a post-season “overstock sale”. When I worked in retail some of our most successful, cash generating events were overstock sales. This not only helped us move inventory and generate cash quickly but created brand awareness with a group of customers who hadn’t heard of us before. These loyal customers began shopping on our site and spreading the word about our brand. Before we knew it, we had created a loyal group of customers who shopped with us year after year. Do this sooner than later – it puts cash in the bank as you buy new inventory and gives you the room you need to rack all the cool new things you are bringing in for the new season.
Maintain a Clean Warehouse and Clean Inventory
Now that you’ve done the hard work, keep your space clean and your inventory dialed. As you head into a new year, put a schedule in place that ensures your team takes some time each day to clean up your aisles and keep your racks clean. Cycle counting is important, but impossible if you can’t get to your product. If you struggle to keep your inventory dialed, think about an inventory management software solution that can help you. Removing manual processes will save you time and help keep your inventory on track.
Next month, we will talk more about getting rid of excess inventory and how current supply chain bottlenecks may play in your favor. Until then, enjoy getting organized and getting ready for a great 2023!
To read more about inventory management and organizing your warehouse, check out our blog article on using FAST principles for efficient ecommerce warehouse management.
