If you are a retailer, you must be aware of how difficult the process of inventory management is. The major goal of every retail business is to sell inventory. But mismanaging your inventory can incur losses in the business.
Inventory management is one of the strong pillars of a successful retail operation. Efficient retail inventory management can lead to more customer satisfaction, increase profits and reduce costs.
What is retail inventory management?
Retail inventory management is the practice through which retail businesses ensure that the right products are available in the right quantities, at the right time. It may sound simple, but it also includes coordination with vendors, managing your in-store inventory, product list, tracking products, and also coming up with a price strategy in mind.
Any retailer who wants to be successful must have brilliant inventory management. Here is a list of 5 top inventory management techniques that will increase your sales:
- Organize your Storehouses
One of the best inventory management techniques is to have a segregated store. An organized inventory store is a key to infrastructural continuity. A disorganized store can lead to stocks getting lost or backed up. E.g. if you have perishable items in stock that have an expiry date, there is an existent possibility that they will turn sour, if not sell in time.
Disorganized inventory management can lead to unnecessary wastage of products and loss to your business.
- Decrease Product Range
If you are carrying multiple items in stock that are not much in demand, it is time to narrow down the product range. An overstocked inventory increases the cost of inventory as it leads to the storage of obsolete products that are not in demand. You will have to discount, bundle or donate these products later.
All that extra stock will also take up the valuable space of the products that your customers do want to buy. On the contrary, a smaller inventory will decrease your inventory costs and will also help you avoid holding excess inventory.
- Avoid deadstock
Deadstock is a stock that can no longer be sold because it has either gone out of the season, fashion, style, less demand, or otherwise become irrelevant. Hence, manage your inventory better so that you can avoid dead stock.
- First-In-First-Out (FIFO)
The principle of “first-in, first-out” is very important for inventory management. It simply means selling your oldest stock first, followed by your newest stock. This principle is apt for perishable products so that you don`t end up with unsellable spoilage.
- Invest in the Right Talent & Technology
Automation of inventory management is crucial for every retail business. Hence, invest in an excellent inventory management system, and most importantly, hire people who know and pay attention to details.
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