Here we review some principles of inventory management. One of the most delicate exercises for the retailer, but essential for its cash flow and revenue.
You can think of your inventory as a substitute for your hard-earned money. You invest in products and only if you actually sell them do you get your money back and make a profit. That’s why effective inventory management is crucial to your success: it’s more or less the survival of your business.
Synchronize your inventory by tracking sales in-store and online.
Thinking about inventory management can be a bit new zealand whatsapp number data overwhelming. Don’t worry, it’s not impossible. Use the inventory reporting capabilities of your POS system, along with the following four techniques, to maximize your inventory ROI.
Get rid of dormant stock.
Evaluate slow moving inventory.
Double down on what sells well.
1. Get rid of dormant stock
Dead stock is stock that doesn’t move (i.e., stock that doesn’t sell). If you don’t use inventory management software, you run the risk of keeping dead stock sitting in the back of the store or on the shelf, forgotten and neglected by your customers. And as the name suggests, dead stock kills your store’s profits.
Dead stock doesn’t just take up space; it also t how should your brand be talking? are you talking about the right topics? ies up resources, leaving you with less to invest in replenishment or marketing efforts. For most retailers, unsold inventory after six months is likely to cause inventory turnover to plummet. So take action and eliminate dead stock. Here’s how.
Ask your distributor if they would be willing to take cg leads back dormant inventory, in exchange for new inventory or a price reduction on your next supply order.
Run a promotion or flash sale and discount dead stock to generate quick sales.
As a last resort: If your promotions or negotiations with the distributor don’t work, you can donate the dormant stock to charity, in order to benefit from a tax deduction.
Often the first step in stocking your shelves with stock that sells well is to get rid of unsold stock.