How to Avoid & Prevent Stockouts?
Certainly, stockouts are not a very ideal situation for retailers. That is to say, they not only result in a loss of sales. Moreover, they result in losing customer interest and loyalty. That is to say, shoppers feel disappointed when they are not able to find their desired product. Therefore retailers cannot afford to make their customers unhappy and dissatisfied. Hence, let’s look at the causes of stockouts. Moreover, we shall also find the ways through which retailers can avoid and prevent stockouts.
Inaccuracies in Inventory
One of the most common causes of stockouts is the accurate data in inventories. That is to say, the figures in the inventory often do no match the numbers of products in the store. For example, returns, shipped, misplaced and stolen products. Therefore such inaccuracies regarding products can mistakenly lead retailers into thinking that they have an item in stock. As a result, retailers re order the products that might be in stock because of being unaware of the correct figures.
Invest in Modern Inventory Management Solutions
We can prevent the inaccuracies by adopting a modern inventory system. In other words, writing records manually is prone to having more mistakes. Therefore it is advisable to use a modern point of sale system that is able to automatically add and remove inventory products as soon as sales are processed. Consequently, retailers do not have to fret over updating details manually. Moreover, a good point of sale system is also effective because it helps manage multiple stores from the same place.
Retailers need to be Vigilant & Active
Secondly, retailers need to be vigilant and aware of what is happening around them. A POS system can handle the intricate details. However keeping things monitored is the retailers’ duty. That is to say retailers need to keep a check of the inventories and the proceedings of the store. Consequently, they shall save themselves from theft and shoplifting. For example, in case of theft, retailers need to upgrade their security systems.
Radio Frequency Identification
Thirdly, retailers should opt for Radio Frequency Identification to maintain inventories. This technology enables retailers to store and trace records and necessary information of the products. Moreover, the RFID enables retailers to monitor and search for products through a portable scanner. Consequently, this makes easier for the store managers to find and track the required items. Further, it informs store managers about the items that need to be restocked.
In-time reordering saves from stockouts
Another major cause is not ordering items at the right time. As a result, retailers run out of stock. Consequently they sell products that are not in demand. Let’s look at the ways through which we can prevent stockouts by ordering in time.
Out of Stock Patterns
Firstly retailers need to find the out of stock patterns. Consequently, retailers can regularly keep a check on the stocks. Therefore, retailers will be able to know which hours and days experience stockouts. Hence, with the help of this data retailers can reschedule their stocks. As a result, they will save themselves from facing stockouts.
Secondly, retailers should keep a proper check on customer demand. Consequently, they shall be able to predict customer demands on time. In addition, retailers can forecast customer demand as well based on sales records, the turnout of sales and promotions, etc. As a result, these numbers will give retailers a proper understanding of the products that are high in demand. Secondly, retailers need to be aware of customer trends in the market. For example, keep track of the emerging trends that people are attracted to.
Set Re-order Points
In addition, setting re-order points is essential. A good POS system or inventory solution allows retailers to set re-order points. Consequently, retailers are informed when to re-stock orders. Therefore, retailers are saved from facing stockouts.
Poor Management Skills result in stockouts
Retailers can have the best plans and modern tools, but if their employees are not perfuming well, there is no point. In other words, management skills count a lot. If retailers are not managing the store well, there are more chances of stockouts taking place. For example, the store might have stocks, but if the employees are not refilling the shelves properly, customers will be disappointed because of the mismanagement on the part of employees. Therefore retailers should take care of these issues by focusing on the management of the store.
Vigilant & Active Employees
Firstly retailers should ensure that their staff is vigilant and active. If they are not well informed about the gadgets and technology that retailers are using, they must be educated first. In other words, they should be given training sessions to enhance their performance. Moreover, retailers can make inventory management plans. Further, they can assign duties to individual staff members. For example, one can be in charge of receiving the items. Another should be in charge of restocking the shelves and so on. Therefore this way, inventories will be managed properly and save retailers from stockouts.