Different stores vary when it comes to retail inventory management. Each company and manager has its own processes. Small shops may use the spreadsheet method. Small businesses may invest in a dedicated software system and larger enterprises may use an electronic networking system. No matter what size or type of retail business you operate, there are some best practices when it comes to retail inventory management.
Using an EDI System
Stores with more than one location can benefit from an electronic data interchange (EDI) system. It helps automate ordering and inventory. A manager sends the vendor a purchase order to set the automated system in motion. Everything is bar-coded and scannable to ensure orders are accurate and products shipped match what was ordered.
Automated Management Systems
Having an EDI system is key to automated inventory. The program can monitor product levels to ensure timely reorders so you don’t run out of products. It’s also possible to set up automatic reorders for products in high demand.
Order to Shelf Managing
Order-to-shelf retail inventory management is used by grocery stores to help reduce storage and labor costs. Products arrive the day they are needed and should run out just in time for the new shipment to arrive. This may mean daily orders to ensure no storage is necessary.
Point of Sale Analytics
A point of sale (POS) analytics system helps manage inventory. It helps you see how many units are selling each day for top sellers and identify slower-moving products. You’ll be able to determine what items aren’t selling at all and which ones need to be kept in stock. This can improve profitability by keeping newer, better-selling products on hand and eliminating the bottom sellers.