Imagine having a cheat sheet for your inventory. You can glance at a page to see how much of an item you have in stock, where it’s stored, and when the shipment came in. That’s the power of an inventory list.
These lists detail everything you have in stock, including key information about the items. They’re key to trimming surplus inventory and avoiding shortages. Here’s how you can leverage them to improve operations.
Getting started with inventory lists
An inventory list is a comprehensive snapshot of everything a business owns. It should specify which items are in stock, how many are available, and any relevant details. This includes all raw materials, work-in-progress items, and finished goods ready for sale.
Access to this information simplifies order planning and scheduling production, leading to increased efficiency, cost savings, and quicker responses to market changes. It also minimizes the possibility of inventory shortages, preventing lost sales and dissatisfied customers.
Your inventory list isn’t just a static document — it’s a tool for ensuring smooth inventory management processes. By providing a clear insight into the availability of items, businesses can meet customer demand without incurring unnecessary carrying costs.
Inventory list example
Despite the name, most inventory lists are tables displaying key data about each item. Here’s a simple example of an inventory list for a lemonade stand:
|
Item |
SKU |
Description |
Quantity |
Cost |
Reorder level |
Lead time |
|
Lemon |
00001 |
Individual lemons |
20 |
$0.75 |
10 |
6 days |
|
Sugar |
00002 |
2lb bags of white sugar |
5 |
$22.00 |
1 |
9 days |
|
Water |
00003 |
4L bottles of distilled water |
10 |
$3.00 |
2 |
1 day |
|
Paper cups |
00004 |
Sleeves of 100 12oz disposable cups |
5 |
$20.00 |
2 |
2 days |
What should an inventory list include?
While the example above is quite simple, you can add or remove columns based on what’s relevant to your inventory. For example, you might add an “Expiration date” section to note when the lemons expire, columns that detail the supplier’s name and information for each item, or a note about where these materials are stored.
Here’s a list of the common information any effective inventory checklist template includes.
1. SKU/item number
Assign a unique SKU or item number to each product. This is crucial for effective inventory management and quick referencing, as it simplifies tracking and organizing products.
If you manufacture in batches or work with perishable goods, you might also include a column for lot numbers. For example, all lemons might have a SKU of 00001, so lot numbers help identify the specific batch of lemons. A shipment received on August 15 might have a lot number of 0815 to help you guarantee you’re using the oldest materials first.
2. Item description
Provide all the essential details for each item, including its name, features, and specifications in the description section. This helps accurately identify the product and ensures everyone on your team knows its purpose and functionality, making inventory management smoother and more efficient.
3. Quantity on hand
Record the amount of available stock meticulously. Accurately tracking stock levels helps you make informed decisions about inventory management and ensures you know how much is available.
4. Unit of measure
Include the unit of measure for each item, whether it’s pieces, boxes, kilograms, or another unit. This maintains consistency in measurement and tracks stock accurately.
5. Location
Note the exact location where each item is stored. This is vital for efficient stock retrieval, especially if you have multiple storage locations.
6. Cost per unit
Record the price per unit, which can vary based on the costing method used.
7. Prices
Keep track of each item’s purchasing and selling prices for sales records and financial reporting.
8. Reorder level
Determine the inventory level at which new orders should be placed, or your reorder point, to prevent stockouts. Maintaining this level ensures you always have enough goods to meet demand.
9. Supplier information
Include comprehensive supplier details, such as contact information, order history, payment terms, and other relevant details. This will make reordering easier and improve communication with your suppliers.
10. Inventory audits
Conduct regular inventory audits to keep your inventory records accurate. This means physically counting your stock and comparing it to your records to spot any differences. Regular audits help ensure your inventory data is reliable and that your inventory management processes work well.
If you’re choosing to do a cycle count, note which date an item was counted. If you’re counting the whole inventory at once, document when the stock level’s accuracy was last verified.
11. Inventory write-downs or write-offs
Record any reductions in inventory value due to damage, obsolescence, or declining demand. That includes both write-downs and write-offs. This ensures the accuracy of financial records and the inventory’s recorded value.
12. Manufacturing processes
If you’re organizing a raw material inventory, note which production cycles use each item. For something simple, like a screw or paint, you might note that it appears on multiple BOMs, while other intermediate goods are used on fewer assembly lines.
How to make an inventory list
Whether you stick with a manual system, use spreadsheets, or invest in advanced inventory management software, each inventory list method has its benefits. Here’s more about each to help you choose the one that fits your needs.
Manual inventory lists
Creating manual inventory lists involves writing down and tracking inventory data by hand. While it can be time-consuming and requires attention to detail, it doesn’t require any special tools or software. Small businesses with limited stock and minimal technological resources commonly use this low-cost method.
Spreadsheets
Building an inventory spreadsheet with software like Microsoft Excel or Google Sheets can significantly simplify your inventory management process. These tools come with a variety of inventory templates. Plus, they allow for easy sorting, filtering, and data analysis, making them a big improvement from manual data entry.
You do still have to manually input data into the inventory sheet, though, meaning there’s room for human error that skews calculations and data analyses.
Inventory management software
For businesses of any size, all-in-one inventory management software like Fishbowl provides an advanced and efficient way to handle your inventory.
One of Fishbowl’s standout features is its ability to generate highly customizable reports, such as about the inventory you have on hand — with the option to sort by date, expiration date, part number, or location. These reports cover a wide range of information, guaranteeing you have all the information you need and reducing the likelihood of errors.
Benefits of using an inventory list
An organized inventory list offers many benefits to help your business run and grow smoothly. Here are some of the top ones:
- Improved accuracy: Regularly updating your inventory list ensures you always have the most accurate information on stock levels. This reduces the risk of having too much stock or depleting your inventory.
- Cost reduction: Keeping the right balance of stock levels helps you avoid excess holding costs and optimize storage space.
- Enhanced efficiency: A well-managed inventory list makes ordering easy by giving you a clear view of what’s in stock. This efficiency speeds up the reordering process and makes planning for the future easier.
- Better warehouse organization: When every item has a designated place that’s detailed on an inventory list, picking and packing becomes much easier. Workers spend less time looking for products, reducing delays in order fulfillment.
- Better decision-making: Having precise inventory data is crucial for making informed decisions about when to buy or manufacture. It also allows you to adjust procurement strategies to align with demand fluctuations.
- Customer satisfaction: Effectively managing inventory enables you to promptly meet customer demand, enhancing service levels and boosting customer loyalty. Satisfied customers are more inclined to come back and refer your business to others.
Streamline your inventory management with Fishbowl
Understanding the key components and methods for creating a simple inventory list can improve efficiency, reduce costs, and enhance customer satisfaction. Let Fishbowl help. We can automatically generate accurate inventory lists to inform you about stock levels. You can also track the price per unit with one of four distinct costing methods for more accurate financial reporting.
Plus, Fishbowl’s integration with QuickBooks enhances capabilities by providing a full spectrum solution for managing your stock alongside financial insights.