For a retail business to grow and prosper it must find a way to turn inventory into sales as quickly as possible. Stock held in storage ties up capital and increases the chance of becoming damaged, spoiled or missing.
Getting this process right is always a juggling act for small and medium sized business, but with the right approach it becomes easy to master. Following are a few strategies that you can practice that will greatly improve your inventory management and increase your efficacy as a business.
Take Advantage of Inventory Management Software
Software solutions to inventory management can streamline your process for success. Top of the line inventory management software, like DataQlick, provides inventory data in real time allowing you to forecast sales, measures stock levels and track items more efficiently. By knowing exactly what you have on hand and what you can expect to need in the near future, you will never be bogged down by too much stock or stuck apologizing to irate customers when out of stock.
Adjust Costs of Inventory
Correctly processing inventory will avoid the waste of items becoming lost, damaged or otherwise losing value. Adhering to a FIFO (First In – First Out) approach to inventory management with the help of a proper inventory management makes it easier to get the most from your inventory expenses. By fully understanding the buying trends of your consumers you will be able to keep your supply one step ahead of the demand.
Apply the Knowledge of Tracking and Analytics
Keep precision inventory records by using barcodes scanners to account for everything coming in and out of stock. The details on sales and inventory levels will be processed and presented in graphs and stats that can provide deeper insights into your product and target demographic.
This can then be compared with current market trends and other industry research to adjust the optimal levels of stock for your business at this point in time. Instead of becoming stuck in a routine of ordering and reordering the same stock, as the really big corporations do, use your size and flexibility to match the needs of your customers. Keeping your stock orders fresh and on target will greatly increase your popularity within your target audience.
Once these strategies have been applied appropriately and fully understood, many more strategies will be made apparent. For example, you will begin to acquire a priority list of products that will need to be constantly on hand. Seasonal lists may also come into view, as these can be used to renegotiate deal with suppliers to find the most cost-effective solutions for you.