Barcode Inventory Management Explained: Labels, Scanners and Counts
Barcodes do not manage stock on their own; scanning at every movement does. Here is how to run labels, scanners, receiving and counts so the records match the shelf.
Blog · 12 articles
Inventory and stock
Stock is usually the largest amount of money a shop has tied up, and the hardest to see. Inventory management is the habit of knowing what you have, what it is worth, how fast it moves and when to buy more.
Start with the basics, then use the worked examples and calculators to put numbers on your own stock: turnover, stock value, reorder points and safety stock.
Articles on inventory and stock
How to Calculate Stock Value: Methods, Formula and Examples
Stock value is the quantity on hand multiplied by what each unit cost you. The hard part is deciding which cost to use when prices change. Here are the methods, worked through with real-looking numbers.
How to Prevent Stockouts and Overstocking in a Small Business
Running out and having too much are two symptoms of the same problem. This guide shows how to sort your items, set stock levels from real sales, build a review routine and clear the overstock you already have.
How to Track Shop Inventory Efficiently
Efficient inventory tracking is not about counting more. It is about capturing every movement once, at the point it happens, and checking the record in small regular counts.
Manual Inventory vs Inventory Software: Which Fits Your Shop?
A stock register costs almost nothing until the shop grows. Here is how to compare the real cost of manual stock-keeping with software, and when switching makes sense.
What Is a Reorder Point? Formula, Safety Stock and Examples
Reorder when the stock left will just cover sales until the delivery arrives, plus a buffer. Here is the formula, how to choose the buffer, and how to adapt it for seasons and weekly supplier visits.
What Is Inventory Management? Methods, Examples and Why It Matters
Inventory management is the work of buying the right stock, recording every movement and checking the record against the shelf. Here are the stages, the main methods and the numbers that show whether it is working.
What Is Inventory Turnover? Formula, Example and How to Improve It
Inventory turnover tells you how quickly the money in your shelves comes back as sales. Here is what the number means, what a high or low figure is telling you, and practical ways to improve it.
What Is SKU Management? A Practical Guide for Retailers
An SKU is only useful if it is managed: created once, kept clean, tracked for sales and stock, reviewed and eventually retired. Here is how retailers do each step.
How to Manage Inventory for a Small Retail Shop
A small shop does not need a warehouse system. It needs a clean item list, an opening count, a buying budget and a few short routines that everyone follows.
Inventory Mistakes to Avoid: 10 Habits That Quietly Cost Shops Money
Most stock problems come from a handful of everyday habits. Here are ten of them, what each one costs in rupees, and the fix that stops it.
SKU vs Barcode: The Difference, and How to Use Both in Your Shop
A SKU is the code your shop gives an item; a barcode is how a scanner finds it. Here is how the two differ, how they connect in the product record, and how to set them up so every scan finds the right size and colour.
Free calculators
Work it out.
- Free calculatorInventory turnover calculatorCalculate inventory turnover and days of stock on hand from cost of goods sold and opening and closing stock value. Free, runs in your browser.
- Free calculatorReorder point calculatorWork out when to reorder an item from daily sales, supplier lead time and the safety stock you want to keep. Free, runs in your browser.
Quick answers
- How much stock should a shop keep?Enough of each item to cover sales until the next delivery arrives, plus a small safety buffer, and no more than one order’s worth on top. For each im…
- What is dead stock, and what should you do with it?Dead stock is stock that has not sold for a long time and is unlikely to sell at its normal price, such as last season’s sizes, discontinued models or…
- What is FIFO in inventory?FIFO stands for first in, first out. On the shelf, it means selling the oldest stock before newer stock. In accounts, it means assuming the units you …
- What is safety stock, and how much should you keep?Safety stock is the extra stock you keep on top of what you expect to sell while waiting for a delivery, so a busy day or a late supplier does not emp…