Inventory management is a critical aspect of any business, but it can be especially important for retailers. Poor inventory management can lead to lost sales and decreased profits, while effective inventory management can help retailers keep track of stock, optimize stock levels, and ensure that they are stocking the right products.
There are a number of ways that retailers can improve their inventory management, including by implementing a number of best practices.
Sufficient Inventory
Retailers must ensure they have sufficient inventory for customers before they need it. If the retailer’s customers come into the store looking for an item and the store is out of stock, the customer will likely leave without buying anything.
In order to prevent out-of-stocks, retailers should utilize wholesalers that offer JIT delivery. JIT delivery is a system where suppliers deliver products to retailers just in time for when they are needed. Companies such as GWC Packaging utilize JIT delivery to make sure that no retailers are left without the product they need.
Optimize Inventory Levels
Retailers should aim to have the right inventory levels. As mentioned above and is obvious in the retail market, iff retailers don’t have enough product on their shelves, customers will not purchase anything and they won’t make any sales.
On the other hand, if retailers stock too much product, that becomes time and manpower that could be spent more usefully elsewhere.
It is important for retailers to find the ‘Goldilocks Zone’, where they have just enough inventory so that they can provide for their customer’s needs, but also don’t have too much product. Both too much and too little product can be a loss for a retailer.
Track Stock Levels
Retailers should track their stock levels so that they can make informed decisions about what products to order and when. Retailers can use a number of different tools to track their inventory, including receiving software and the inventory count sheet. This way retailers will know when they need to order more products so that they never run out.
Retailers should use these best practices to keep their store stocked with inventory without wasting too much money or time on unnecessary stock levels. These methods will help retailers ensure that they are providing the products that their customers want, when they want them. Implementing these practices can help retailers improve their inventory management and improve their bottom line.
GWC Packaging is a leading supplier of packaging supplies and offer JIT delivery services, help with stocking supplies, and total inventory control. For more information, visit our site today!