How to Create an Inventory Tracking System
A retail store can use an inventory tracking system to keep track of the amount of inventory currently in stock compared with the amount of inventory sold during a period of time. This type of tracking system can help business owners understand what products sell the best and what products stagnate on the shelves.
Other People Are Reading
Instructions
-
-
1
Write down the type of inventory currently within the store. Categorize the inventory by style, manufacturer and price.
-
2
Assign a specific code for each piece of inventory. The code should be simple, such as a letter to determine the type of product (example: computer paper = CP, candles = CS, etc.) and a number to keep track of the individual product piece (example: CP1, CP2, CS 3, CS5, etc.).
-
-
3
Upload the product codes into a spreadsheet. Categorize the spreadsheet by manufacturer, and create subheading underneath each manufacturer for the type of product (example: Marlboro -- Marlboro Lights, Marlboro Blend 27s, Marlboro Reds, etc.). Specify the number of each individual item you currently have in inventory beside the product name.
-
4
Print small labels that can be placed directly onto the product. Write the inventory tracking code onto the label and place on each product. Place the labels in discreet areas on the product.
-
5
At checkout, have the employee write down the inventory tracking number into a ledger, and if possible have the employee remove the tracking label from the product and place the label beside the entry.
-
6
Review the inventory ledger every night at closing and update the spreadsheet. This will inform you how many particular items were sold throughout the day, thus when performing an inventory check you can quickly see if there is an inconsistency in products sold versus products available in the store.
-
1
Tips & Warnings
Keep the tracking code for each item as simple as possible so the cashier can easily, and accurately, write down the information.
By not creating an inventory tracking system, you may not know if any items are missing or if there are enough popular items in stock.
Resources
- Photo Credit Jupiterimages/Comstock/Getty Images
