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Best Way to Handle Inventory in Retail Business

  • Customer: “Just a cobb salad, romaine lettuce only, no egg, ranch dressing on the side, extra bacon and cheese.”
  • Store Personnel: “Sorry, that’s out of stock.”

One of the greatest challenges for retailers is managing inventory – just imagine the thousands of items that retailers carry and handle at each location.  Indeed, inventory nightmares can become all too real.

Back in the day, stores spend long hours counting endless rows and shelves of items. Staffs refer to count results to manually determine how much to order for each of those 5,500 or more items.   No one can even ascertain the accuracy of such counts and yet still rely on it.   For sure, inventory shrinkage or losses (i.e. expired ingredients) persist but nobody knows how much and to what extent, considering the lack of reliable records.

How can retailers address and handle inventory in the best way possible? 

In today’s highly competitive and rapidly changing business environment, retailers must transition from manual inventory management into automated and intelligent inventory management systems to save time and money at different levels, including visibility to:

  • Out of stock. Running out of stock is opportunity lost and poor customer service.
  • Dead stock. Dead stocks are items sitting on a shelf for several months without any sales – either they are out-of-date, out-of-season, spoiled, or simply cannot be located.  Low sellers can be marked down or discounted, bundled with other items, or exchanged/returned to vendors.
  • Shrinkage, theft. With a reliable inventory system, you will promptly detect and know any shrinkage, employee theft, and be able to quickly institute counter measures.

By managing the above-mentioned concerns, retail store owners will be very pleased at the amount of money that can be saved quickly and over time.  Weeding out dead stocks and slow sellers will generate FREE CASH that can be better used to beef up fast selling items, avoid out-of-stock situations, or afford to open new stores.

Investing in a very good inventory system will certainly enable highly effective inventory management – i.e. optimum stocking for maximum sales, alarm for reorder points, detection of shrinkage losses, and tracking of anomalies.

At best, systems must have built-in intelligent features and e-enables analytics power!

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How can we help? If you are scouting for systems that will help you achieve real benefits, don’t just assess and validate the systems features. Seek the background and kinds of people behind the development and delivery of the systems. We offer PREMIUM but affordable retail management solutions and professional services suitable to your requirements. Contact us for assistance.