How to optimise your stock and fulfilment process

To make your business more profitable and efficient, you need to regularly review what you sell and how you send it. The key actions are to identify and discount slow-moving products, make your packing process quicker and more accurate, and actively find cheaper ways to ship your orders to customers. Getting this right directly boosts your profit margins and keeps your customers happy.

Review your stock performance

The first step is to understand what’s actually selling. Dive into your sales data from the last few months. Which products are your bestsellers, and which ones are gathering dust? Stock that hasn’t sold for a long time (e.g., 90 days or more) is known as ‘slow-moving stock’. It ties up your cash and takes up valuable space.

What to do:

• Identify slow movers: Create a list of products that aren't selling.
• Take action to clear them: Consider putting them on sale, creating a special offer, or bundling them with a more popular product. The goal is to turn that stock back into cash.
• Focus on bestsellers: For your most popular items, make sure you have a good system for reordering so you don’t run out and disappoint customers.

Streamline your packing and dispatch process

A messy or disorganised packing process costs you time and can lead to mistakes, like sending the wrong item. Creating a smooth, repeatable workflow is essential, even if you’re just working from your kitchen table.

Here’s a simple, three-step approach:

1. Set up a packing station: Keep everything you need to fulfil an order in one dedicated place. This means having your boxes, mailers, tape, bubble wrap, and labels all within arm’s reach.
2. Pack in batches: It’s much faster to do the same task multiple times than to switch between different tasks. Try processing all of your morning’s orders in one go in the afternoon, rather than packing each one as it comes in.
3. Use the right packaging: Make sure your packaging protects the product without being excessive. Using boxes that are too big not only wastes filler material but can also increase your shipping costs.

Analyse and reduce your shipping costs

Postage can be one of the biggest expenses for a product-based business, so it pays to shop around. Don’t just stick with one courier out of habit; review your options every few months to ensure you’re getting the best deal.

• Compare the main couriers: Check the prices from Royal Mail, Evri, DPD, and others for the typical size and weight of parcels you send. Online comparison tools can make this quick and easy.
• Open business accounts: As your shipping volume increases, you can often get access to cheaper rates by opening a business account directly with a courier.
• Minimise parcel size and weight: The cost of shipping is almost always determined by the size and weight of the package. If you can use a smaller box or a lighter mailer without compromising on protection, you will save money.

Top Tip: You don’t need fancy software to get started. A simple spreadsheet is a great way to track your stock levels, sales data, and shipping costs. As your business grows, you can look into more advanced inventory management systems.