Inventory management is certainly important when it comes to handling businesses effectively. In other words, lack of effective inventory management leads to loss of sales and poor customer experience. That is to say, in case retailers do not effectively manage their inventory, there are high chances that the business will suffer immensely. Therefore retailers need to ensure that their inventory management is effective and maintained the right way. Below we have discussed some major inventory management mistakes and how retailers can avoid them.
Manually managing Inventory
Retailers cannot manage their inventories well if retailers are still handling their inventory manually. In other words, one of the major setbacks in managing inventories well is still using pen and paper. Consequently, it can lead to human error and a waste of time and effort. So retailers need to automate their manual procedures. That is to say, instead of handwriting each inventory-related detail; retailers should get inventory management software. Further the modern inventory management system updates the records automatically. That is to say, retailers do not have to manually update the records.
So retailers should update the system. Moreover, they should look for such an inventory system that has a reporting feature along with it. So, by having accurate and right records, retailers will be able to know about their best sellers and popular products. Consequently, they can make smarter and more effective choices. Further in order to know about the popular products and best customers retailers can invest in POS System. This is also very effective for business insights and records.
Counting Physical Inventory
Certainly, there are issues when it comes to inventories. That is to say, issues regarding shrinkage. However, if these issues are sought in time, retailers can save themselves from the loss. Therefore retailers should count their stock quite often. In other words, if retailers will not count the inventory frequently, they will face such issues which will lead to loss of business without their knowledge. Because of lack of counting physical inventory, retailers can get in big troubles.
So if retailers are counting their stocks once a year, they will have the discrepancies of the whole year. Consequently, it will become difficult for retailers to resolve those issues or even find the culprits involved or nay other root causes. Further, retailers need to ensure that the online stock and offline stock are synced because this will lead to customer satisfaction. So, generally, it is suggested that the inventory should be counted once a month, if not twice.
“One of the great responsibilities that I have is to manage my assets wisely, so that they create value.”
Certainly, organization is the key when it comes to successfully handling the business. In the same, vein, organizing inventories is equally important. So, retailers must ensure that their stockrooms should be neat and well organized. Certainly messy and disorganized stockrooms can lead to troubles and difficulties. Firstly retailers should ensure that they plan how and where they should place their products. So, retailers should make sure that the items are easy to locate. Having a look at the way products are moving, retailers can place their fast-moving products at the beginning and below vertically. Subsequently, they can place their slow-moving products farther. Moreover, retailers should label their boxes and cartons. Consequently, this will make it easier for retailers to find the desired products.
To conclude, managing inventories well is a must for businesses. Certainly, without it, retailers cannot manage their business well.
“There are three key assets in retail: real estate, inventory, and people.”