For retailers, inventory is one of the most important aspects of business. But it is also one of the most difficult things to track. Every day, sales, returns, new receipts and breakages affect your stock levels. While daunting, keeping track of it all in real time is one of the most important tasks to keeping your business ticking over.
Here’s why your retail business needs a dedicated inventory management software.
Miss fewer sales
When you don’t keep track of your inventory, it’s easy to run out of products—and miss out on sales. Instead of relying on your memory or constantly visiting your warehouse, a dedicated inventory management software could be just what you need.
With most modern systems, you can run a quick and easy stock report to stay updated about what’s going on in your warehouse. You’ll be able to quickly see what products you’re running low on, compare your stock level with what’s been selling well and automatically reorder before you run out.
Invest in products that sell
To be successful in retail, you need to invest your cash wisely by buying the right quantity of each product—enough to keep sales going and prevent stock-outs, but not so many that some just sit on the shelf. Keeping accurate inventory reports helps. And with a dedicated inventory management platform, you can quickly identify slow-moving products and reallocate budget to invest in products that sell.
More accurate reporting = better decision making
With a dedicated inventory management software, you can quickly produce accurate stock reports and see true stock cost values—which are essential to your financial reports. The easier, and more accurately you can see your balance Sheet - as well as your Cost of Sales and Profit and Loss reports—the better management decisions you can make.
Easily pick up on errors
If you’re keeping an eagle eye on your inventory levels with dedicated software, you’ll spot problems right away—instead of months later during annual stock takes when they may have already cost you a lot of money. Whether a step in your warehouse process is being missed or one of your salespeople is making mistakes on sales orders, you need to know sooner rather than later. The best way? By constantly reconciling sales and purchases through an automated inventory management software.
Precise inventory management also help you provide better customer service. When customers say they haven’t received one of the products they ordered, you need to be able to check your stock and confirm. Likewise, if you regularly keep on top of inventory levels, you can identify incorrect shipments sooner. And if your stock system is up to date with purchase orders, you’ll be able to sell customers the products they want because you’ll know more are just about to arrive. This kind of communication encourages your customers to trust you, which in these competitive times, is a valuable asset.
Reordering will be fast and easy if your reports tell you what’s in stock. You can work methodically through your product set, making informed buying decisions instead of physically checking your warehouse shelves to write a purchase order. If your reports come from an advanced inventory management system, you also can tell if you already have products on order with a supplier and if your supplier has long lead times or irregular deliveries. This information is a must if you want to keep reordering under control.
Reduced warehouse costs
When your inventory software tells you what you have in stock, the pick-pack-ship process runs more efficiently. Your warehouse staff don’t need to run around looking for the last product because you know exactly when it sold and shipped. This enables you to process more orders in the same amount of time with the same staff—or balance your resources differently. Accurate inventory management tracking keeps your business lean!
Improve stock take and end-of-year efficiency.
With a dedicated inventory management system, periodic stock takes are faster and more efficient. You’re just confirming data that’s already in your system instead of doing a lot of time-consuming data entry.