Have you ever thought of why some retailing shops are boosting up their sales day by day but some aren’t? With the upbringing of technological advancements in retail and inventory management systems, there is no word like ‘little competition’.
The future of retailing shops is decided by many more characteristics than just the cash flow.
One of the major characteristics is the management of stock and inventory. Inventory may decide the profit. It is your regular investment in your business, and you have to sell it to get your invested money back with profit.
Some common and basic things you consider with your inventory is to avoid spoilage by ‘First in first out’ methods i.e., selling the older stock first, avoiding dead stock and save your money on storage costs by avoiding spending much on warehouses. Healthy Relationships with your suppliers is another moral issue that you should take care of. Here are some tips that can help you be better than your contemporaries by advancing in inventory management:
Set PARs: Using periodic automatic replenishment means to determine the amount of each product that should be in hand all the time. This is also known as the par level.
Contingency Planning: Getting to know future real-time risks with your business is a necessity. Overselling, less storage space for new stock etc. may happen anytime.
Regular Auditing and Weekly stock takes are important for any retailing business.
Accurate Forecasting is determining or predicting future sales based on current market sales and seasonal changes, also according to the customers you have around.
Perform Metrics and measurements are methods to compute the profits and losses from your products. Getting to know the product, identifying the best selling and worst selling products will help you define a channelized way to increase your sales.
Use allocation to assign properly the stock- By doing the proper maths and especially for large orders, you can allocate the incoming stock to a particular sale, so that it can’t be sold in any other way.
Reducing receiving errors by using barcodes- Managing inventory with barcodes can help you update stock levels easily with less human effort.
Using SKU numbers Stock- Keeping the unit is simply a special coded number or in any other form system to identify the presence of an item in your stock by a simple search.
Stay on top of returns means to have the cause of return understood, creating and receiving the product set in inventory updates is another essential element that may save you from losses in a longer period of time.
Now, what if we tell you that each point you read above, is magically handled by one single solution, i.e., an Integrated ERP solution which consists of inventory management tools that provide accurate reports, sale conditions and by using advanced machine learning algorithms can even forecast the suggested things.
This is possible through the progress of the software solution developing companies especially in countries like India. PAIT BIZ Pvt Ltd is a leading retail software and Hardware AMC company based in Pune, which can help you advance in the fields of proper retail and inventory or stock management by its continuous progress in software solutions for retailers across Pune and India. Down the line, Success is what you make it and how you make it.