6 Ways to Manage Inventory Better
Inventory management is one of the most important aspects of running a retail chain. It could mean the difference between a profit and a loss. With that in mind, here are six ways to manage your inventory better than ever before–no matter what kind of retail business you own.
- Product Allocation – Instead of sending all 100 of a single SKU to one store, spread it around. If you have 10 stores in your chain, each store should get some of the product, but maybe they don’t all get the same amount. Allocate your product based on store size, quarterly sales, or set your own rules.
- Replenishment – One of the worst things in the retail world is having a customer ask for a product and it’s not in stock. On the opposite end, you’ve got so many of a product that you can’t sell them, and customers perceive there’s no value because you’ve got so many of them. If you can replenish your product automatically when you reach a certain number, you’ll have much better control over your inventory.
- Sales and Promotions – People don’t always buy based on price, but price is important for moving merchandise. Effectively manage your sales and promotions so that you can maximize profit on every single item in the store.
- Manage Your Warehouse Layout Better – Do your employees run around your warehouse looking for product? Do you lose whole boxes of merchandise? If so, you can manage your warehouse better with smarter layouts. Move your product from the warehouse to the store more efficiently and cut down on product losses.
- Know Every Product’s Status – Your supply chain is vast. You could have product on the shelf, waiting to be priced, in shipment from the manufacturer, sitting on a pallet in the warehouse, in transit from the warehouse to the store, waiting to be returned to the manufacturer, etc. It’s important to know the status of every product in the store, all the time. By tracking each product SKU and knowing where that product is, you can run your retail chain more efficiently, satisfy more customers, and make more profits.
- Fulfill Orders More Efficiently – Your ability to fulfill orders through any channel is imperative today. You’re not just competing against the store across the street. You’re competing against every retail store on the planet. You should be able to fulfill orders from your website, on Amazon, at eBay, through smaller shops online, and through your own brick-and-mortar stores. Be efficient in order fulfillment.
Managing inventory does not have to be hard, but it does have to be done. From the time you place the order to the time the customer walks out the door with it, you should know the status of each product, its optimized price for each season you hold it in the store, and more.
A robust retail management solution will help you manage your inventory from beginning to end. No more lost product, no more confused employees, and no more unsatisfied customers.