How to Improve a Store's Inventory
Taking control of your inventory can reduce company expenses, raise your sales, improve your cash flow and even increase employee productivity. Whether you're running a chain of national department stores or are the proprietor of a neighborhood grocery store, learning how to improve your inventory can make a favorable difference in your profits.
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Things You'll Need
- POS system
- Inventory management software
- Storage containers
- Shelving units
- Label maker
Instructions
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Organize your stock and storage space. Keeping a neatly organized inventory and well-designed storage area makes keeping an accurate account of stock items much easier. Products scattered throughout an unorganized warehouse or stock room make them nearly impossible to track. Use shelves and bins to store your products and keep all identical items in the same bin or shelf area.
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Assign product numbers and categorize items. Keep records related to each item you sell. Create a list of items and include their descriptions, quantity, product and model numbers and the location of the stock area where each item is kept. List any applicable needs associated with the items, such as shelf life, refrigeration and temperature control requirements. Categorize items in groups and keep them stocked in close proximity. For example, sheets, blankets and pillow cases can be categorized as "bedding."
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Label shelves and bins accordingly to easily locate products. Create a floor plan system in your warehouse or stockroom that assists in finding your products. Clearly mark or label all bins, shelves and aisles to identify products at a glance. For instance, if you have a full aisle of kitchen appliances, label each shelf and bin appropriately. Then you can easily locate an item according to your floor plan; "Sunbeam four-slice toaster; housewares; Aisle 16; Shelf #3b."
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Set pars for every retail item. One of the most important aspect of improving your retail inventory is setting product pars. Set a minimum and maximum quantity for each individual item kept in stock. Base these amounts on your selling history, current consumer demand and wholesale pricing of each item you stock and sell. Setting pars--and sticking to them--is a significant help in avoiding under- or overstocking.
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Incorporate a point-of-sale system to store operations. The best way to improve the efficiency and accuracy of your store's inventory is to use a POS system. In retail, POS systems are used in conjunction with bar codes and scanners to instantly and electronically record every sales transaction and procedure, including appropriately adjusting the inventory count. Alerts can be set to inform you of low stock and you can produce a printed up-to-date inventory report at any time with the push of a button.
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Integrate information management software to your inventory system. Many brands of inventory management software exist to help retailers monitor and control their inventory online, in real time from the store to the corporate offices. Such software applications integrate with inventory systems to allow sales personnel, managers and corporate executives to view all current stock and pricing information.
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References
Resources
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