- What is the Inventory?
Whatever the total number of products or goods a retailer has in hand is what counts as the inventory. The retailer needs to manage and know the exact counts of products and the space it is taking up to be stored. This will help him to understand the inventory cost. To succeed every retail manager focuses on demand and supply chain. To understand the demand and supply your inventory system should be effective and efficient. The key priority is to have a perfect inventory management system that can satisfy market demands at the least cost.
For being effective, Retail inventory management system should address the following issue,
1.Inventory Levels:
An ideal inventory level should be determined by the system that maintains the exact count of each item that is socked. It should make a positive impact on order fulfillment and should be able to give a total overview of the inventory. A Retail inventory management system must work on optimizing the inventory levels.
2.Forecast:
With changing seasons, offers, trends, and other factors the demand keeps changing. The system should be able to forecast these changing demands and the inventory should be managed accordingly. The major task is to strike a perfect balance between the stock levels of the company and demand satisfaction.
3.Costs:
The most basic issue to be addressed is reducing costs. The system needs to optimize the order levels, supply pattern, and replenishment cycles and reduce the total landed cost. The cost reduction should nowhere compromise the quality served.
4.Reports:
A Retail Inventory management system should provide inventory reports monthly. These reports contain information regarding the whole inventory and should provide insights if any.
These are a few basic issues that a retail management system should solve and provide effective and efficient strategies for business growth. Considering these issues before opting for a retail inventory management system for your business can prove beneficial.
