The 5 most common inventory tracking mistakes (and their fixes)
Poor inventory management quietly erodes profit. We've covered the five traps SMBs fall into most often and how to fix them.
Inventory is the biggest capital item for most businesses, yet the most neglected. Here are the five mistakes SMBs make most often:
1. Relying on a single 'current stock' number
A single number kept on a card misses the warehouse and variant distinction and drifts over time. The right way: always calculate net stock from the sum of movements.
2. Not separating warehouses
Keeping all stock in one pool hides the real situation per branch/warehouse. See each warehouse's net stock separately with multiple warehouses and transfer records.
3. Neglecting variants and serial numbers
Collecting variants like colour/size on a single card makes sales and return tracking harder. If serial numbers aren't tracked on technical products, warranty processes get tangled.
4. Not reflecting stocktakes in the system
Doing a physical count but not posting the result to the system is the most common mistake. Record the difference with stock surplus/shortage and wastage entries.
5. Not defining a critical stock level
A critical stock level is essential to be notified before a product runs out. Otherwise, saying 'out of stock' at the point of sale or ordering too much and tying up capital becomes inevitable.
Good inventory management targets not the unsold shelf, but capital that turns over just in time.
The Okkabaz inventory module closes all five of these traps: movement-based net stock, multiple warehouses, variant and serial number tracking, stocktake records and critical-stock alerts.