Inventory is one of the most important parts of any retail business…it is certainly one of the biggest investments and something that most retailers spend a majority of their time managing. At the end of the day, if you have the best mix of inventory on your shelf at the right time, you stand a much better chance of being successful and profitable.
However, managing a Retail business is time consuming. There are competing priorities…staff, sales reps, customers, suppliers – it’s an endless list. Most retail stores have thousands of stock lines, all selling at different rates and for different margins, which is hard to manage. If you have more than one store, the task of managing your stock gets exponentially harder.
Every time you spend your money on inventory, you are making a huge investment in your business. Sometimes you are buying too much of what you don’t need, and not enough of what you do need.
Get it right and you will be successful, get it wrong and you have money tied up in stock that isn’t moving – that’s dead money.
How do you know what to order from your thousands of stock lines?
- You might run a report and manually work out what to order.
- You might fill the gaps on your shelf with new stock.
- You may allow your staff to do the ordering.
- Or some retailers even let sales reps do the ordering for them when they come for their monthly visit – don’t forget that this is your money they are spending!
If you are particularly good at working out what to purchase and you only get it wrong 10% of the time, that is still a significant sum of money you are wasting.
How can you make sure you get your purchasing right?
Retail Express utilises a highly intelligent retail stock inventory management software and purchasing system. This retail stock control software helps you determine exactly how much of each product to order, when to order it and which store it should be delivered. For example, for each item you want to order, the system takes into account:
- Sales by day (run rate)
- Lead time from the supplier
- How much stock you have in each store
- How much is already on order or in-transit to each store
- How long you want the new stock to last you for
- Plus a range of other important factors
The software takes all this information and using the built in algorithms, tells you exactly what you should order and automatically creates the purchase orders for each supplier. You simply check the order and send them off.
Software for stock control gives you the best chance to maximise your return on stock for the biggest investment in your business.