An All-in-One Introduction to Inventory Management Training

What is Inventory Management Training?

Inventory management training teaches retail teams how to keep track of the products in a store or warehouse to make sure that nothing runs out or goes to waste. It ensures that there is enough stock to meet customer demand at all times, maximizing sales and avoiding net losses.

Importance of Inventory Management Training

Warehouse and inventory management training helps retail teams effectively utilize their inventory management systems by providing the following benefits:

• Maximize sales: Effective inventory management guarantees that there’s always enough stock to satisfy customer demand. When on-demand products are available on the shelf, the store can make the most revenue out of the products they have in stock.

• Avoid stockouts: Inventory training covers inventory management techniques like “Just-In-Time” and “First In, First Out” to help retail teams decide when it’s time to replenish inventory. This keeps items from running out of stock and prevents the store from losing potential sales.

• Reduce shrinkage: Training ensures that retail teams know how to respond during cases of missing inventory due to theft or errors. It also helps them anticipate when items are about to go bad so they can plan ahead and order replacement stock just in time.

• Boost efficiency: Proper inventory management means organized shelves and just enough stock on standby if current inventory runs out. This makes the restocking process more efficient and gives customers an undisrupted store experience.

• Improve customer satisfaction: Providing what the customer is looking for brings increased customer satisfaction and a better business reputation.

Topics Covered

From inventory basics to inventory management tools, training can cover a wide range of topics that can help retail teams oversee the store’s stock levels more effectively. Below are some topics often included in inventory management training courses:

1. Inventory Basics and Types

This introduces retail teams to the different types of inventory: raw materials, work-in-progress (WIP), merchandise and supplies, and finished goods. Understanding the type of inventory on hand helps them plan the most effective way to manage the inventory system as a whole. It also allows them to categorize items into groups for better sorting and smoother execution of bulk actions like storage checks and identification.

2. Inventory Management Techniques

Most inventory management training courses will cover various strategies and models to help your retail team get the most value out of incoming, current, and future inventory. Some of the most commonly discussed inventory management techniques are:

• Just-in-Time (JIT): This involves working closely with suppliers to make sure the team is working with the least amount of inventory possible. This minimizes costs and prevents stockpiles of unnecessary inventory. JIT is typically used on perishable items like fresh produce, bakery goods, and dairy products, so that shelf items remain fresh.

• First In, First Out (FIFO): FIFO is a rotation method where the oldest stock is sold or disposed of first. Implementing this method means placing incoming goods behind existing ones during shelving, so older stock is more likely to be grabbed by customers. Similar to the Just-In-Time technique , it ensures that items prone to spoilage are sold before they go bad.

• Economic order quantity (EOQ): It’s a simple math formula that retailers use to avoid additional ordering and storage fees. The economic order quantity determines the optimal batch size for reordering when replenishing inventory.

3. Cycle Counting and Audits

Supplies can get damaged or contaminated as they are transported from one location to the next. To identify these issues early, both cycle counting and annual audits are included in inventory management training. They allow retail teams to check inventory by batches, at different scales.

Cycle counting entails conducting regular inventory checks on a small batch of items. Meanwhile, audits are done on a larger scale every year. Usually completed for compliance, audits require a certain level of comprehensiveness that often results in disruptions to normal store operations.

4. Demand Forecasting and ABC Analysis

Demand forecasting and ABC analysis go hand in hand in determining which items to reorder. The former takes note of purchasing patterns and other external factors to make an accurate forecast of how much attention a certain product will attract. Retail establishments use the latter to sort store products into A, B, and C categories, based on reordering priorities determined by the results of demand forecasting.

5. Technology, Software, and Tools

Retail teams who know how to maximize modern technology can work more efficiently, gaining a competitive advantage in the market. With this in mind, inventory management training also includes courses detailing the proper usage of various inventory management tools. It also gives them a better understanding of how these devices work.

• POS systems: These are directly linked to inventory systems, giving teams a real-time overview of stock levels and keeping an accurate track of sales. Some POS systems come with advanced reports that are also used to predict demand and prevent overstocking or understocking.

• Barcode scanners: Barcodes provide a faster way to identify the movement of each stock unit, feeding data for demand forecasts and EOQ calculations. When scanned, these unique identifiers also automate inventory counts, speeding up the process and reducing room for errors.

• RFID tags: Often paired with POS systems, they offer updates on an item’s location in real-time. This helps detect unauthorized movement and reduce shrinkage from theft.

• Inventory apps/platforms: These act as a central hub for inventory management tasks. Most platforms like Sortly and Zoho keep detailed records of cycle counts and inventory checks. Other apps can also be connected to inventory management tools, pinging your team when there’s low stock and theft alarms go off.

• Warehouse management systems (WMS): Designed for large-scale facilities, WMS excel at automating inventory management tasks like cycle counts, inventory checks, and EOQ reordering. This speeds up high-volume routine tasks that would otherwise take hours when done manually, making it a great tool for grocery inventory management as well.

Training Delivery Methods

There are many ways to deliver inventory management training, and each method provides unique advantages to the learning experience of your retail teams.

In-Person Group Training

These methods bring everyone together face-to-face for interactive learning and allow team members to teach and learn from their peers as well.

• Workshops and classroom sessions: These let teams interact directly, ask questions on the spot, and practice skills like stock tracking in a group setting. These methods build stronger habits for retail or manufacturing teams by mimicking daily workflows.

• Role-playing and simulations: They build confidence and sharp problem-solving skills by imitating the potential issues and disruptions they might encounter in the warehouse. It also creates a risk-free environment where teams are allowed to mess up and learn without costing the business.

• Onboarding with mentors: Having a trusted expert at their side gives new hires more confidence to handle tasks by walking them through the process step-by-step. With a mentor at their side, they can also be advised to correct their mistakes before they cause big damage.

Digital and Self-Paced Options

Perfect for busy schedules, these let team members learn at their own pace. Not only do they put less pressure on learners, but they also boost their retention as they have more control over their own time.

• Online modules and e-learning platforms: Delivering online training grants retail teams the flexibility to learn inventory management tasks like stock tracking and reordering anytime in between shifts. They’re cost-effective and scalable, which is perfect for expanding teams.

• Virtual live sessions: This option combines the flexibility, cost-effectiveness, and scalability of online learning with the benefit of in-person interaction. It offers instant feedback and polls on topics like reorder points, providing real-life engagement while fitting shift schedules.

• Microlearning apps: These add another layer of flexibility to digital courses as they transform training into bite-sized topics that matter most to the team’s workflows. They also increase retention by up to 18% , allowing businesses to get more value out of their training sessions.