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 much 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 times. This is also known
as the par level.
Contingency Planning: Getting to know the 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 the 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 unit is the 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 which 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.
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