Managing your Warehouse inventory as a wholesaler and manufacturer

Good inventory management is necessary for manufacturers and wholesalers to maintain their profits. Inventory management includes good warehouse administration skills, like implementing safety measures, cooling and cleaning, record keeping and pricing techniques. Lousy inventory management will leave you with large inventory on hand while you still find it difficult to fulfill the customer’s orders.

Warehouse Administration:
Warehouse is the building which is used by a business (mostly a manufacturer, big exporter or wholesale supplier) for storage of goods. These are the key points to remember in warehouse management.

Safety:
Safety comes first. With so much loading and unloading going on all the time, warehouses possess greater chances of accidents then any other workplace. Workers should be well trained, especially those who operate the machinery like forklifts. Rules and instructions should be followed carefully by everyone to avoid hazards like slipping or falling. Also install good sprinkler system and evacuation plan to help in case of fire.

Cooling & Cleaning:
Warehouse is normally quite congested with stock piled up all over the place. Develop a good ventilation plan to maintain the air quality and save the workers from dehydration. Keep it tidy and preserve good working environment. All goods and inventory items should be properly stacked.

WMS:
Warehouse management system is some software which helps in managing and controlling inventory at warehouse. WMS can make the job a lot easier if used efficiently. While choosing a WMS, out of many available at market, you should look at what suits your business more, also the usability of that particular warehouse management system.


Inventory Pricing:
Setting prices for your inventory is a tricky business. Normally three techniques are used for inventory pricing, which are:

1. LIFO
2. FIFO
3. Average Method

You can choose any of the above method, though none of them has a real affect on your profits, but businesses maneuver around with these techniques to save tax, because the figure of gross profit changes with every method.

ECQ and JIT:
ECQ model decides how much inventory you want to keep on hand. A good ECQ model should be able to avoid both, inventory shortages and inventory in excess. JIT helps in reducing the inventory to minimum. Goods and products arrive just-in-time when they are needed, eliminating the extra cost of storing that inventory.

Record Keeping & Physical Counting:
All arrivals, departures, sales or purchases of inventory should be recorded. Physical stocktaking should regularly be scheduled on small scale, rather than calling the employees on off days and carrying out physical counting on annual basis. Forms should be available for workers and supervisors to fill every time they receive or dispatch some items. This will help in making your record more accurate.

Importing From China

It has not been long before China was seen as a nation specializing in low cost replicas with absolutely no focus on quality and value. China however had no intention of remaining just a low-cost source of third class imitated products. With steps taken by their Government like revolutionizing their educational system and giving benefits to the companies that bring technology to the country, China has successfully managed to break the notion. According to PRC General Administration of Customs, the top exports of china in the year 2007 were electrical machinery & equipment and power generation equipment respectively. That's a significant shift from agriculture sector to industrial. China is now world's largest exporter of technology goods. Even the country like Japan is among the top 5 countries, importing from China.

Although, importing from China with such positives may look like a source of easy money, it has its fair share of negatives. So before you embark upon the idea of starting imports from china with dreams of huge profits in your mind, you must not overlook these problems which might occur once you get into this trade.

1. Finding Suppliers:

While finding a supplier from China seems like a walk in the park (there are so many on internet and yellow-pages), it isn't that easy. Reason, you cannot just trust any supplier which comes your way while searching on the internet. Check for credibility; find some well known company rather then just choosing the one with lowest price quotes.


2. Payment Issues:

Most important thing when striking out a deal with some Chinese exporter is to finalize the payment method with him. Issues like payment method, currency in which payment will be made, how much will you pay in advance? Should be discussed and settled as soon as possible, to avoid complications in future.

3. Communication:

Another hurdle which has been there for long is communication problem. Although more and more Chinese now seems interested in learning English to expand their opportunities, it will take some time before they start getting familiar with English language norms. Till then you have to rely on your communication skills and ability to convey your message clearly. Know the terms used in this part of the world. When making an order, be very clear in your product specifications. Re-check by inquiring, what they understand of your instructions. Clearly state what should be produced and how it should be produced. Give crystal clear instructions on what material should be used, or you will end up having “lead painted toys”.

4. Quality Control Problems:

Very recently issues like kid’s toys having lead paint, or livestock and pet food having chemicals, injurious to animal’s health have raise eyebrows over quality of China’s exports. Problem lies partially at Chinese manufacturer’s side and partially in drastic efforts to cut cost to its minimum. While your prime reason for importing from China is “low-cost”, make sure you are getting products which don’t fall below standards of your market. Arrange for some agent or third party in China which will ensure quality check on your part before your order is shipped to you.

Importance of trade shows for your import & export business

Trade shows are kind of business exhibitions, with a focus on some particular industry. Various companies have their booths on display in these trade shows, marketing their business products and services. Visitors can visit the company’s booth or stall and collect first hand information about the business and products it offers. Trade show is a great prospect for importers and exporters looking to explore new markets.

Exposure:
Every business needs exposure. Especially the business that has just started, such business cannot have a platform better than a trade show to provide them with sufficient exposure. You will get noticed instantly by your targeted customers and others who may be interested in your business somehow.

Watch your competitors & their products:
You can get a grasp of the competition going around in your industry. You can see the products or services offered by your competitors. It will help you to assess your standing in the market and how you can improve at your services to grab maximum market share.

Reaching out to potential buyers:
People visiting trade shows are potential buyers. They are there to compare between different products, prices and qualities to pick out the best supplier that suits their needs. Every visitor is a business opportunity, seize as many as you can. At the end of the show you can provide your sales staff with lots of leads, and that too of real potential buyers.

Introduce new products:
Trade shows can be a great platform for launching a new product. Observe customer’s reactions closely and determine if it will be a good idea to launch it in the market. You can also get some input by visitors on how you can improve that particular product to make it more acceptable for consumers.


Take Surveys:
Use trade shows to get customers comments, remarks and any sort of valuable input on your services. A small take away item or gift can be presented on filling out some survey forms. These opinions and observations can prove to be a great help in transforming your business into a widely accepted one.


Virtual Trade Shows:
Virtual trade shows take place on internet through specific portals, with an open or limited access, depending on their nature. These are quite inexpensive. In case you are interested, you can search on internet to see if there is some virtual trade show, related to your industry scheduled in near future.