Let’s be honest: in a world where everyone is talking about automation, manual inventory management can seem outdated. But the reality is, many small businesses still rely on Excel because they simply can’t afford expensive, sophisticated automated systems. So, in this article, we’ll take a look at how you can keep your inventory under control using manual methods.
Tools and Mindset
· The most important thing is to keep your process simple and consistent. Every item in your warehouse should have a unique name or code.
· Don’t forget your “emergency stock”- that small reserve you keep on hand for unexpected situations or supplier delays. Think of it as your “sleep-well-at-night” inventory.
· Group your items by how quickly they move: daily, weekly, or monthly. Knowing which products fly off the shelves and which ones tend to sit will save you a lot of headaches down the line.
Build a System That Matches Your Workflow
Picture your warehouse: where do items come in? Where do they go out? Sketch this out on paper. Next, set up a log to track every movement. Here’s a simple example:
| Date | Item Name | In | Out | Remaining |
Make this log your best friend. If you like using colors, try sticky notes or markers: green means “safe,” yellow is “optimal,” and red signals “problem-reorder NOW.” It’s simple, but it works.
Every Movement Matters
When you receive a new shipment, treat it like a birthday present – open it right away! Check that the delivery matches your order, make a note of any damages, and update your log before putting anything on the shelf.
For sales, assign someone to be the “numbers watchdog.” They should immediately subtract each sale from the log-no guessing, no “I’ll do it later.” If something is returned, record it in a “holding area” in your log. Only add it back to your main inventory after you’ve confirmed it’s fit for sale.
Make Regular Checks a Habit
You know that feeling when you’re sure you have ten units, but only find six? That’s why regular counts are essential. Every week, pick a few items and count them. Once a month, do a full inventory check. Here’s how:
· Count together: two people, two counts. If the numbers don’t match, count again.
· Compare notes: check your physical count against the log. If there’s a difference, look for the reason – maybe something was misplaced or forgotten in the records.
· Correct and learn: update your data and make a note of what happened. If a certain item is always running short, maybe it needs a larger buffer or more frequent checks.
Simple and Smart Reordering
Forget complicated calculations. Here’s an easy way to know how much to order:
Order Quantity = (Average Daily Sales × Lead Time in Days) + Emergency Stock – Current Inventory – Incoming Quantity.
Order on a regular schedule, not just when you run out. A consistent ordering routine helps both you and your supplier plan inventory more effectively.
Post your supply schedule somewhere visible and check it every day to see which orders need to be sent to suppliers.
Stay One Step Ahead
Don’t wait for a crisis – be prepared:
· Watch expiry dates: move older items to the front so they sell first.
· Have backup suppliers: if your main supplier lets you down, you have a Plan B.
· Look for patterns: if umbrellas always sell out in April, increase your reserve in March.
Inventory Is Everyone’s Responsibility
Don’t try to do everything yourself. Assign your most detail-oriented team member as the “logbook guru”- they’ll keep records up to date. The “skeptic” should review the numbers every day. And the “paranoid planner” keeps an eye on low stock and places orders in time.
Set clear rules:
· No entry is final until it’s checked by two people.
· Assign responsible individuals to decide whether to increase an order to the minimum quantity or postpone it until next time.
Improve One Step at a Time
Every month, sit down with your team and discuss: What went missing? Did we run out of anything? Was there too much of something? If your supplier starts delivering faster, reduce your emergency stock and see what happens. Change one thing at a time and observe how it affects your inventory and customer satisfaction.
Manual Inventory Management Is Possible
Manual inventory management isn’t just about numbers – it’s about truly understanding what’s happening in your business. When you’re hands-on, you spot problems before they become disasters. Start small: try daily checks and regular ordering this week. You’ll feel more in control – and so will your team.
As your business grows and manual inventory management becomes too complex and time-consuming, look for automated inventory management systems that specialize not just in accounting or general warehouse management, but specifically in inventory and order management.
