Too much product, or not enough product. This is the balancing act that store managers must juggle on a daily basis. Either extreme can end up costing you money, which is why proper inventory management is essential for tracking product.
How you approach inventory control can have a dramatic effect on your bottom line. Companies that use inventory management software tend to be ahead of the game because it allows:
- Fast, accurate stock counts
- Real-time updates for product movement
- Insight into customer buying trends
To help you stay on top of your inventory demands, here are a number of other helpful tips you might want to consider.
Keep Records of Sales Trends
In order to improve your sales, you first need to have a comparison. The sooner you begin using inventory control software to monitor sales activity, the sooner you’ll have the data you need to begin analyzing performance.
Many sales patterns are cyclical, and by recording sales activity throughout the year, you’ll be able to compare this year’s sales to previous years. The more years you practice this form of inventory management, the more reliable your historical average will be. This is hugely beneficial for projecting sales volumes.
Another benefit of monitoring your sales is that you can identify consumer tendencies. By tracking what products are selling (as well as when they’re selling), you’ll know which ones to buy more of, and which ones can be removed from your purchase list.
Don’t Fall into Buying Patterns
Sometimes buyers can become complacent when placing orders. If they look back and see that they’ve always bought 20 of a certain item for a particular order, they’re likely to do it again.
The problem is, without consulting your sales reports, you might not realize you only actually needed 10 of those items for the past few cycles. This can have a number of negative effects:
- Ties up your cash flow
- Takes up inventory space
- Leads to outdated goods
- Lost profitability due to markdowns
Integrate Your Inventory Management and Accounting Systems
If you’re tired of tracking inventory on spreadsheets and transferring that data to your accounting software, you’re not alone. That’s why companies like Windward Software have developed integrated business management software that is capable of handling all aspects of your operation, including:
- Inventory control
- Point of sale
By merging these important business functions into one comprehensive program, it:
- Eliminates the need for duplicate data entries
- Saves time by only having to use a single program
- Reduces the instances of human error
Plus, most inventory management software these days supports barcoding, which allows for fast, easy and accurate stock counts.
If you operate more than one location, check out our post: Why Inventory Control Software Is a Must for Multiple Locations.
Are you looking for ways to improve your inventory management? Call Windward Software to learn about System Five. Our integrated business management system is designed to help you oversee every aspect of your operation.