Proper inventory management is crucial if you want your business to succeed. Increasing sales revenue will make you happier, and your customers will have more trust in your business. As everyone who owns some kind of inventory already knows, you always need to have enough products, but not too much, and certainly not too little. This balancing is hard to achieve, but it’s not impossible. Here are some ways in which you can increase sales with good inventory management.
The 20%
Try to find out which 20% of your inventory your sales come from. Do a bit of research, and see what’s selling well, and what’s not selling so well. Having a good inventory management system is crucial, and to help you with that, you can use a mobile inventory app like DataQlick. This will quickly give you information about your inventory and you’ll be able to be more effective. Inventory tracking software will be your faithful companion, especially in the case of point-of-sale software that automatically adjusts the information regarding your inventory every time a sale has been completed. Remember the 80/20 rule: around 80% of your sales come from 20% of your inventory.
Forecasting
The sales forecast is important throughout the year, but especially during the holidays, such as Christmas and New Year. This is the time when there’s always a huge demand, and companies sometimes can’t seem to catch up with the consumer demand, leaving them to feel frustrated. This is a situation where a sales forecasting app will be of great help, making sure businesses always meet the demand. It today’s hectic business world, it’s practically a necessity.
Watch out for Carrying Costs
If you’re having particularly slow sales period, that could mean that your inventory will not be emptying at the rate you’re used to. And more things piling up means paying more carrying costs for the products, such as paying storage for the inventory, insurance, as well as taxes. Again, a good mobile inventory app will help you with finding out what the current state of your inventory is.
