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