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Cost of Sales Loss – Inventory Management

There are many strategies for maximizing turnover and throughput, there are also less obvious implications of improper inventory management. Obvious problems with poor inventory management are:

There are many strategies for maximizing turnover and throughput, there are also less obvious implications of improper inventory management.

Obvious problems with poor inventory management are:

1.      Lost sales due to empty shelves

2.      Shelf space being filled with unpopular items (this takes up useful and productive shelf space, but it also portrays you as out of touch)

3.      3) Customers can’t get the items that they want.

Most owners stock stores by instinct, or by vendor reps who have their own intentions; if you do this, you run the risk of all of the above affecting your profits and repeat business. Employing a good point of sale system to track customer purchases, you can readily compare sales and inventory levels to that same activity in comparable order periods. It give you visibility into what is moving currently, as well as what sold last year. You can use this data to make educated decisions about what inventory to stock in your location.

Having the wrong inventory on display may not sell, your customers will not be able to get the items they want, you've lost the sale and incurred unnecessary inventory costs. Your customers may form the opinion that you don’t carry what they want, and you've lost repeat business as a relult.

The takeaway is that instead of ordering and stocking by memory, instinct, suggestion, or any other false metric, dig into the data that your POS system gives you to make accurate decisions about what stock to purchase when it's time to reorder. These details can make or break you hitting your sales goals.

Learn more about our Retail POS solutions by clicking here.

By IRIDIUM® Retail Management Software | POS Software | Inventory Management

5 Reasons to Upgrade Retail POS Systems

Antiquated systems tend to slow down retail management process and can be costly to maintain. It may be time for you to shop a new Point of Sale (POS) system to help you save money, time and speed up process to keep up with your business needs. Here are a few things to consider when shopping Retail POS (Point of Sale) management solutions:

Antiquated systems tend to slow down retail management process and can be costly to maintain. It may be time for you to shop a new Point of Sale (POS) system to help you save money, time and speed up process to keep up with your business needs. Here are a few things to consider when shopping Retail POS (Point of Sale) management solutions:
 
1. Ease of Use: Store owners and managers typically are looking for retail management systems that are easy to use, easy to train new employees and easy to deploy within their business environment. Many older systems are clumsy and not very well integrated. Look for retail management systems that will adopt the way in which you run your business.

2. Retail Store Growth: it’s a big change going from 1 store location to two, five or twenty locations. The challenge becomes inventory management for multiple locations with a single POS management system. Typically your older systems are not sufficient enough to manage multi location scenarios.

3. Poor Technical Support: Many owners and managers are frustrated with the amount of time it takes to get proper technical support qnd help with their retail POS management systems. Many times a one-man shop either goes out of business and no longer supports their products or they lose the personal touch it takes to service their retail clients. Look for vendors that develop applications in industry standards that make them easy to support and ensure long product life cycles.

4. Multiple Channel Support: E -commerce, retail, mail order and phone orders. many retailers have expanded into multiple ways of taking orders. Look for retail POS management systems to support multiple ways to bring in sales and support future growth plans. having an all in one solution will make your life much easier.

5. Hardware Failures: Many times we find retailers using systems that can be decades old, still running DOS based systems. Hardware failures are a great opportunity for you to explore ways to prevent costly breakdowns and look for systems that cost less to own over the years and make retail POS management easier and more efficient.

We have analyzed a few of the reasons retailers look to replace existing retail POS management solutions. Consider the challenges it take to grow your business when looking at fully integrated solutions. Have your vendor discuss options to help reduce costs, create efficiencies and support your system through your ownership life cycle.

Retail POS: Inventory Automation

How do you manage your inventory The amount and the number of product lines can vary greatly between different businesses. Some businesses in a niche market may only have 5 or 10 products where other businesses can have thousands and thousands of products that they carry. Regardless of the number of lines it's important to secure and manage inventory. Problems can be compounded by size and volume

How do you manage your inventory

The amount and the number of product lines can vary greatly between different businesses. Some businesses in a niche market may only have 5 or 10 products where other businesses can have thousands and thousands of products that they carry. Regardless of the number of lines it's important to secure and manage inventory. Problems can be compounded by size and volume

Inventory many times no longer needs to be manually counted as often assuming your inventory control system is updated. Not so long ago, what the POS System would do is to be just a cash register that will accept payments from customers. But now, the POS systems that are in place in most of the stores everywhere automate the business and make it easier to operate.

Inventory control can be a confusing subject, most functions can be automated and programmed according to your needs and demands. You can save a lot of time by having a system in place for your inventory control, your POS can be set-up to do this for you. Automation is the way to go if you want to have a business that will run smoothly with the least amount of effort for you. Freeing you up of valuable time will help you focus on the other aspects of your business so make sure that you are taking advantage of the automating capabilities of your POS.

Effective Management of Inventory

Inventory management describes the efficient method of controlling stock and functions and making sure that they arrive in the right place at the right time all within a cost and profit scenarios. Identifying effective inventory management can be easy if certain issues are taken into consideration.

Effective Management of Inventory

Inventory management describes the efficient method of controlling stock and functions and making sure that they arrive in the right place at the right time all within a cost and profit scenarios. Identifying effective inventory management can be easy if certain issues are taken into consideration.

Stock and Inventory Control

Effective inventory management covers many things as it relates tostock control. It is vital to order enough stock of a product that sells well. On the flipside it is also very easy to over order superior selling items. The key is to reduce additional costs in the form of insurance, stock control and storage. Be careful not to over order products that just don't sell well, or that sell slowly. Products such as these can sometimes be shifted with concerted sales promotions and marketing efforts. Try to reduce products sold at a loss, sometimes even disposed of as this option works out cheaper than storing it.

Inventory Storage Costs

For more effective inventory management work out the costs of storing products. Compare this to the costs of storage for a year - this will give you better insight into the number of items that should be purchased and how long you should look at storing them. Inventory management data can be used to determine whether goods should be destroyed and how this affects your inventory costs. You should be able to analyze your product shift and you should have a good idea of whether a product should be kept or destroyed.

Ineffective Inventory Management

Ultimately bad or ineffective inventory management is when retail stores start losing money. Poor inventory that is stored for a long period of time not only ties up money, increases insurance but also affects cash flow and your ability to buy better selling product.

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