A Practical Guide to Inventory Management for Distributors
Learn how to track stock, reduce wastage and keep the right inventory levels.
By Ashutosh Dubey1 min read
1. Know What You Have
Stock on hand is simple arithmetic: what came in, minus what went out. The hard part is recording every movement — goods bought, invoices, returns, damage — on the day it happens. Miss one and the number drifts.
2. Set Low-Stock Levels
For each item you can't run out of, set a level below which you reorder. Base it on how much sells between your supplier's deliveries, plus a little extra for busy days.
3. Count Regularly
Count fast-moving items every week and the rest every month. When the count differs from the books, record the difference as a correction — don't just overwrite the number — so you can see where stock is going missing.
4. Cut Waste
Sell the oldest stock first, record damaged goods the day you find them, and look each month at which items you throw away most. Ordering less of those, more often, usually saves more than any discount.
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Conclusion
Good inventory management isn't a big system — it's every movement recorded, levels that warn you early and a count you do on a fixed day.