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When you have a solid inventory system, you’ll know exactly how much product you have, and based on sales, you can project when you’ll run out and make sure you replace it on time.

Just like cash flow, it can make or break your business.

Good inventory management saves you money in a few critical ways: Avoid Spoilage If you’re selling a product that has an expiry date (like food or makeup), there’s a very real chance it will go bad if you don’t sell it in time.

If you run your business with Shopify, inventory management is already built in.

Regardless of the system you use, the following eight techniques to will help you improve your inventory management—and cash flow.

Solid inventory management helps you avoid unnecessary spoilage.

Avoid Dead Stock Dead stock is stock that can no longer be sold, but not necessarily because it expired.

Par levels will vary by product based on how quickly the item sells, and how long it takes to get back in stock.

Although it requires some research and decision-making up front, setting par levels will systemize the process of ordering.

Not only will it make it easier for you to make decisions quickly, it will allow your staff to make decisions on your behalf. Check on par levels a few times throughout the year to confirm they still make sense.

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