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Wholesaling Tips to Keep Your Stock Tidy And Fresh

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What is the secret of a successful wholesale business? The majority of you might say excellent customer relationships and effective marketing strategies. You are not wrong. But, according to market experts, the essential of a successful wholesaling business is exceptional inventory handling.

Inventory handling or inventory management is an organised approach to sourcing, storing, and selling both raw material and finished products. In other words, inventory management ensures the right product, at the right level, at the right time, in the right place, and at the right price.

However, considering the current market dynamics, businesses have also started prioritising technology. It is done to provide convenience and ease of operations to both the employees and customers. Are you also into wholesale trading? If yes, your prime target has to fulfill huge order volumes as soon as possible.

It calls for a foolproof backend inventory system to keep your stock tidy and fresh, no matter what goods you sell. The recipe for a successful wholesale business today is more or less similar across industries. A systematic inventory control mechanism along with effective marketing strategies can ensure a long inning for your business.

From cash flow management to hiring the right people, inventory planning to sales, here are some tips and tricks to succeed in this business.

1. Define Business Operations

It is one of the most important tips for wholesale business, failing which you might need to go back to square one. There are thousands of wholesaling companies competing in the market. Therefore, it is crucial to have a crystal clear business plan to reach the zenith of success. Here are some essential steps for you to follow:

  • Start with determining the type of business operation you want to run.
  • Identify the major player in the market, and take cues from their business plans.
  • Refine your business plan according to your ideal business model.
  • You can opt to go direct selling, merchant selling, or like an order service.
  • Last but not least, decide if you wish to specialise in one particular product type or sell a wide range of items.

2. Get Familiar with Stock

It is essential to get a hold of the wholesale business supplies available to you. In other words, you should know the exact number and types of products stored in your storage facility. It will help you in keeping your stock fresh and tidy throughout the year. What are the advantages of having an efficient and storage system?

  • Saves time and money.
  • Enhance efficiency and productivity.
  • Easy order fulfilment processes.
  • Keeps the stock safe and secure.
  • Helps in optimising the available space.

3. Take Control of Your Inventory

Taking control of the inventory is of the utmost importance when it comes to managing a wholesale distribution business. In other words, you cannot run a successful business if you do not have an efficient inventory management system. So, what are your options here?

  • Just-in-time - Some businesses prefer to go for a Just-in-Time inventory management strategy. It means they have a ready stock in-hand only for the available demand.
  • Minimum Stock – You can opt to go for a minimum stock inventory system, wherein you can replenish new stock once you hit the minimum stock levels.
  • Safety Stock – Many wholesale trading companies keep a safety stock that offers protection against sudden demand spikes. It acts as a buffer stock to manage unexpected sales.

Here are some tips to efficiently manage your inventory.

  • Use technology.
  • Automate operations.
  • Keep everyone in the loop to avoid bottlenecks.
  • Track all the expiry dates diligently.
  • Use AI to predict demand according to consumer buying behaviour.

4. Stop Managing Orders Manually

It is one of the most crucial primary business tips for people who aim to keep their stock fresh and tidy. Do you still write or supervise your stock manually? If yes, it is high time you stop doing that. Even if you are using excel spreadsheets or PDF order forms, you are not doing any good to your business.

These methods are also equally cumbersome as paper, and you might miss the mark. On the contrary, you should use mobile applications to manage your wholesale business supplies orders. It allows you to give data access to your sales rep, share catalogues, and consumer details right on their gadgets. Here are some advantages of going 100% technical in managing orders:

  • Reduce data redundancy.
  • An efficient tool for the sales rep.
  • Eliminates paper process.
  • Enables real-time stock control.
  • Better clarity of the available stock.
  • Enables digital invoicing system.

5. Hire the Right People

It might seem like quite an obvious tip, but it is one of the most crucial tips for wholesale business. You see, many businesses fail to invest enough efforts in the hiring process. They lay more attention to other business functions and finally end up with an incompetent workforce.

However, hiring decisions are some of the most crucial decisions one can ever make in his or her wholesaling business. But how should you go about it? Follow these simple tips:

  • Start benchmarking every new position in the business.
  • Evaluate candidates against the set benchmarks.
  • Make sure you focus more on behavioural questions rather than general ones.
  • You can also go for a stress interview to understand how the candidate reacts in a stressful situation.
  • Hiring a professional manpower company will prove to be a wise and time-saving decision.
  • Make sure you hire dynamic and competent employees who will help to churn the stock at a faster rate.

6. Move Inventory Fast

Do you wish to keep your stock fresh and tidy throughout the year? If yes, you should focus on moving inventory at a faster rate. You see, inventory pile-up will increase your overhead costs, hamper brand credibility, and lead to dissatisfied clientele. Hehe are some simple tips to avoid this situation:

  • Speed up your delivery processes to avoid inventory pile-up.
  • Adopt a “one-in, one-out” strategy to effectively manage the stock.
  • Roll out effective products promotion strategies to boost the demand for your products.

7. Purge Dead Stock Frequently

Many businessmen wonder how to do wholesale business effectively. The answer is by ensuring dead stock is eliminated frequently. Keeping dead, out-of-date, or expired stock will not only waste space but also your money.

Moreover, optimum utilisation of the storage space is also crucial for the success of your wholesaling business. It calls for a regular inventory check. Here are some tips to perform an effective inventory check:

  • Use an automated system to keep a check on your inventory
  • Hire experienced managers who will stay on their toes to ensure fresh and tidy stock in the warehouse
  • Identify the products that have low demand in the market and reduce their inflow
  • Removing the seasonal stock and making way for the new stock is a great way to manage your space
  • Try to sell out-of-season products by rolling out special offers and discounts

8. Allow Seamless Picking Systems

Do you have a slow picking-up process? If yes, you have to improve your picking system. An inefficient and slow inventory picking process can cost you dearly in terms of labour and time.

Therefore, make sure you offer a well-planned picking area to your workers. However, the design should be customised according to the nature of your business. Here are some useful ideas for you:

  • If you have liquid-filled drums, make sure your aisles have ample space for forklifts. You can also install portable drum racks for faster movements.
  • If you deal in FMCG or solid products, make sure they are easily accessible by the employees or customers.
  • Stock lighter products ahead and heavier ones behind for better visibility and movements.

Takeaway

So, these were some crucial primary business tips to maintain a tidy and fresh stock in your business. Optimising your supply chain is the key to success in the wholesale business. Make sure you limit current inventory, integrate automated storage systems, understand your target audience, and have a feasible presale plan. Last but not least, fostering long-term bonds with the customers can be the best way to boost conversions and guarantee continued business. Good luck.

Also Read:

1) 9 Reasons Why You Should Use a Staff Management Platform for Your Business
2) Optimisation of Staff Management and Employee Interests in a Small Business
3) Top Software Ideas for Startups & SMEs for 2021
4) Why Choose OkStaff for Managing the Payroll of your Small Business?

FAQs

Q. What are the benefits of managing inventory efficiently?

Ans. The followings are the benefits of managing inventory efficiently:

  • It saves cost, time, and effort.
  • Easy access to products.
  • Faster movement of products.
  • Reduced chances of errors.

Q. How can I implement inventory management practices?

  • Identify the right location.
  • Consolidate product data.
  • Prepare a business and inventory management plan.
  • Propose the plan.
  • Implement it with necessary amendments.