If you plan to open a new location in the future, calculating accurate inventory levels is important. It will help ensure your new store is well stocked, as well as give you a better estimate of your overall costs. Since you have to consider several different factors, including the shelf/storage space available, type of stock, size of items, and forecasted sales, you may want to use a cloud inventory control app if you don’t already. It will make the following step-by-step process easier.
Calculate total storage space available
Consider your store layout, including shelves, racks, tables, counters, and any other storage areas. For best results, use a hands-on approach, checking the location in person and making relevant measurements. On opening day you will want your store to be not only full of tempting items, but also to look great, so take that into account when doing shelf arrangements.
Use data from similar locations as estimates
Look at current inventory data from current locations that are similar to your new location in terms of storage space and layout. With a cloud based inventory management tool it will be easier to browse through your inventory data using not just numbers, but also insightful charts and graphs.
Even if the layouts between locations differ, you will have a list of inventory data that will help you come up with more accurate estimates. With a QuickBooks inventory control tool you can also draw on your accounting data.
Determine safety stock values
Assigning an initial safety stock number for every item in your new location helps keep your new location well supplied. It also ensures that new purchase orders will be placed before you run into understock problems that reduce customer satisfaction. During the period following the opening of the new location, things may be quite hectic, which is why assigning safety stock numbers is important to ensure operations flow smoothly.
With a QuickBooks inventory control tool like DataQlick you can easily set safety stock values for a new location and enable re-order automation to keep your store well-stocked.
Determine how much extra stock you can store
When opening a new location, it’s safe to order extra stock to fulfill demand and avoid the unpleasant sight of empty shelves. How much extra stock you order depends not only on your budget, but also on your available storage space. If your new location doesn’t have a dedicated warehouse but uses only on-premise storage facilities such as a backroom, your extra stock may be limited to only 10-15% of your in-store inventory.
Talk to vendors
If your vendors are already active in the area where your new store is located, they may be able to offer you reports and other data that shed light on local purchase trends. Contact any long-standing vendors and ask them for any data they can offer you. Such data, together with your forecasts, can help you optimize inventory levels for the new location.
We know that opening a new location can be challenging, which is why DataQlick, our cloud based inventory management tool, comes with many useful features that can make your life easier. These include multi locations support, sales reports and analysis, inventory forecasting, re-order automation, mobile support, and more. With DataQlick, stocking a new location is easier than ever.