Ordering can be quite an involved process but if you have a good method in place you can maintain a smooth and trouble free stock management system.

1. Provide a Purchase Order Number.
   As simple as it sounds you need to ensure that you provide a Purchase Order (PO) Number when ordering stock. In doing so you will achieve the following:
   You will be able to cross reference your shipment with what you ordered. Your supplier should reference the PO number on your invoice and on the Packing List they supply with the goods.
   It will ensure that your suppliers will only send you stock when you order it, not when they feel like sending it to you.
   It will provide you with a reference point if you need to recall the stock some reason at some point in time in the future. Product recall is an arduous task and compounded by poor referencing and record keeping.
2. Uniform Naming Methodology.
   It is vital especially when using multiple suppliers that they all use the same naming methodology. For example if you use a blend of alpha and numeric digits in your product codes, then ensure that all your suppliers provide the same alpha and numeric naming structure in your product codes.
3. Insist that your cartons are clearly marked.
   Insist that your company logo is printed on the outside of each carton. This will assist in preventing your cartons getting mixed up during loading and unloading containers, will ensure that your products stand out against your competitors and your logo looks good.
4. Up to date inventory levels.
   This must be your primary focus all the time. Regardless of whether you are maintaining your inventory levels or a Third Party is maintaining your inventory levels, ensure that they are accurate. Accurate inventory levels will allow you to sell your stock accurately, order stock accurately and ultimately understand the value that your business has reinvested into your Balance Sheet.
5. Ensure that you have a Quality Assurance (QA) process for new stock.
   Supplying quality products must be one of the instilled principles of your business, and by employing a sound QA process will assist you in achieving this. Replenishment stock from existing suppliers should not require QA processing, however new stock lines must be QA processed. If you are using an agent to help source your stock then make it one of their responsibilities. Product quality will never be perfect so ensure that you have the right measures in place to intercept the product before it gets to your customers.
6. Minimise your Suppliers.
   There is no need to put all your eggs into one basket, but at the same time don’t spread yourself too thin with multiple suppliers. The advantages are as follows:
   ?You should receive consistency in service when consistently purchasing from a small group of suppliers
   ?Over time you should receive more favourable payment terms from your suppliers. As your purchasing increases with them ask them to reward you with favourable payment terms.
   ?Your purchasing power will also increase. Increased purchasing power will enable you to negotiate more competitive pricing which should allow you to be more competitive in your market place
   ?You will minimise your risk when it comes to your suppliers replicating your intellectual property and selling it to one of your competitors.
7. Reconcile the PO against the Packing List (PL).
   Remember that what you order may not be what you receive. Request that your supplier send you a copy of the PL when the goods are despatched. That way you will have at least a couple of week’s to reconcile the PO against the PL. The benefit of doing so is that it will allow you to re order stock as soon as possible if you need to do so.
8. Reconcile the physical stock against the Packing List.
   It is vital that you reconcile the PL with the physical stock. There should be ZERO tolerance when conducting this reconciliation. The PL is a representation of what was physically packed on your behalf. If they do not match then there is a strong chance that there has been theft somewhere between the stock being despatched from the factory and you receiving it.
9. Provide Feedback.
   It doesn’t matter if it is positive or negative, but ensure that you supply it. Your quality suppliers will value your feedback and more importantly they will use it to improve their service. Benchmark the standards that you expect from a delivery and then share it with your suppliers so that they know what your expectations are.
10. Pay your Suppliers on time.
    This might seem like an obvious one, but it is not very well adhered to. If you pay your suppliers within your agreed payment terms then they will supply to you on time as well. Importantly though if you pay on time and you have to process an emergency order then if your account is up to date, then will not have no problems filling your urgent order.

If you would like to clarify any of the points above, or would like to find out how Cross Docks Australia can assist in improving your ordering processes then please feel free to contact us at info@crossdocks.com.au or hit us up on Skout.