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Master your inventory and increase your chances of success with these 7 questions

If you are an entrepreneur, you may have already asked the following questions while managing your inventory:

  1. What should be purchased?
  2. Why should it be purchased?
  3. Where should it be purchased?
  4. When should it be purchased?
  5. From whom should it be purchased?
  6. How should it be sold?
  7. How much should it be sold for?

Your stock is what fuels your business operations. We think of stock more for the sale of goods but it can also be associated with services. Whatever your industry, thinking about these questions is nothing new, but they are often difficult to answer. There are several courses that explain inventory management but when it is time to apply it is difficult, you don’t have time or you don’t see results.

The questions presented above were not by chance. They are part of a technique called 5W2H and can be applied to direct many decisions you need to answer about your business through the knowledge of your stock. See below how each question fits into this technique.

5W2H master inventory management
Questions to master your inventory

To effectively answer these questions you need data. Understanding that data will help you is the first step to really mastering your inventory. From that point on, you view data collection not as an overload or waste of time but as an investment that will enable you to answer the crucial questions of your business.

But don’t be scared, you don’t need complex systems or fancy solutions. Data collection can be done in a spreadsheet or if you do not have the necessary resources, even with pen and paper. The important thing is to take the first step of tracking the products that enter and leave the stock, date of event, how much it costs and for how much it was sold for.

With this data in hand, even at an early stage, Crédito Social’s Na Real solution can help you take the first steps to understand what to do with your inventory data and generate information for you to answer the questions listed at the beginning of this post that will guide you in making the most accurate decision for the success of your business.

Fernando Hannaka

Accomplished, multilingual Engineer with significant analytical experience in business consulting, project management and compliance. Agile leadership advocate for team building, innovative culture and business driven solutions. Analytics translator by promoting analytical solutions to non-data driven organizations through business intelligence, process automation and data science. Fluent in Portuguese, English and Spanish.

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    I have been meaning to write something like this on my site and you have given me an idea. Cheers.