Episode Notes

Key Highlights

Check out these four strategies to better control your inventory costs:

1. Outsource Freight Management: Small business owners can save time and money on inventory management by working with logistics companies or freight brokers for shipping, instead of managing it yourself. These experts can leverage software to find the best shipping rates and provide advice on consolidating shipments and timing.
2. Invest in Inventory Management Technology: Using upgraded inventory management systems and hardware are worth the initial investment because they can help save you money in the long run. Modern systems are often enhanced with AI capabilities and can provide real-time inventory tracking, automate reordering and integrate with freight services. All of these capabilities can help increase inventory control and save money.
3. Cut Non-Profitable Product Lines: It's important to evaluate your product lines and offerings to see if there's anything you can discontinue. Gene recommends using the 80/20 rule for inventory, suggesting that businesses should discontinue product lines that don't contribute a significant amount of profit. This can help free up resources to focus on the more profitable items and reduce your overall inventory costs.
4. Eliminate Obsolete Inventory: Business owners should plan to regularly review their inventory and remove any obsolete inventory. Obsolete inventory is not only taking up valuable space but also costing you money. Gene recommends writing off this inventory as a tax deduction because it's a loss. Plus, clearing it out will help free up space for your faster-selling products.

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