Even though it might seem like taking a walk in the park, managing retail inventory, in actuality, is a difficult and time-consuming endeavour. If you fail to implement the necessary strategies diligently, you end up hampering your chances of earning profits. The key is to know the trials that may crop up and have solutions that would seamlessly eliminate them.
Excess Customer Demand
Customers want both convenience and value from a brand. They are also looking out for flexibility when it comes to placing orders and receiving deliveries. To fulfil their expectations without hassle, you must know the on-demand swings – they may be driven by exclusive promotions or seasonal. The customers do play an important role in how you maintain inventory turnover.
Incomplete View of the Inventory
Starting from the seller to the consumer, everyone must be aware that the supply chain can impact inventory management to a great extent. You must have a complete picture of your real-time inventory to avoid back orders or products becoming obsolete.
How many orders do you have at the moment? When are they expected to deliver? How much of a product makes it to the shelves, and how much remains in the warehouse as a safety stock? You must know the answers to all of the stated. This is cumbersome if you plan on undertaking it without any assistance. Investing in automated RFID inventory software helps.
Competition, be it in the form of neighbourhood stores or online platforms, strains your supply chain. Vendor relationships are important, but their nature has changed over time. It is not about procuring the best possible price anymore. You must now work with vendors only if they provide value and help you generate an agreeable customer experience.
Out-dated or dead stock is known for contributing to losses. The products no longer on-demand take up the warehouse space, shelf space, and staff’s time because they have to shift from one location to another.
You will know when a product’s lifecycle ended by going through its sales reports over a stipulated period. Out-dated inventory means you are not paying enough attention to sales data or customer demand.
The usual operating procedures affect your efficiency levels. Many procedures have been there since time immemorial. They were never thought out to become a part of a strategy. They were a response to a situation. These ‘duct tape’ sort of solutions must be addressed immediately.
To make the most of your staff’s time, you need to observe how they work daily and identify the areas with room for improvement. Remember, every inch of unused space escalates your budget. To overcome all sorts of efficiencies, you should go through each aspect of the operation and be aware of their relevancy. Get rid of anything that seems unnecessary or forced.
Every business organization is unique and has its fair share of challenges, some of which may be related to geographical location while others to employee availability. Keeping the aforementioned discussion in mind and investing in RFID software solutions will allow you to become a strategic planner, thus enhancing productivity and providing relief from most preventable problems. Amazing, right?