When your customers looking for items they want to buy from your store, but they find the item is out of stock in your store, then this is a sign that the stock control in your store is not well managed.
If this often happens, then surely you will lose that customer forever. When they can’t find the desired item from your store, they will go to your competitors. If your competitors happen to provide the items they are looking for, then in the future your customers will surely not visit your store anymore.
This is the importance of stock control. So that the above events will not happen again and you can find your loyal customers. Read the 10 tips below to improve the effectiveness of your stock control:
Making priority for your stock will make you understand which items need to order more and more frequently, and which ones are more costly and move more slowly.
Generally, this priority scale is divided into three types, namely A, B, and C. Type A is items that don’t order more but the price is more expensive than the others. Type C for items that are cheap and sell well. Finally, type B, whose price range and movement are between types A and C.
Record your product information
It is important for you as an owner to find product information in your warehouse. The information in question includes SKU, barcode data, which one is the supplier and where the item is coming from, etc.
Other product information that you should know is the price. By knowing the price, you can make adjustments if there are changes that affect the price. For example, the item suddenly gets scarce so that the price rises, so on and so forth.
Some run it once a year, once a month, once every two weeks or once a week. Each company has its own rules regarding the timing of stock-taking.
The purpose of this stock-taking is to know exactly how many items you have in the warehouse. If you have thousands of items, then you need an inventory management system to help the stock-taking process.
Review your supplier performance
In addition to internal factors, you also need to review the external factors. For example the performance of your supplier. Are the deliveries done on-time? When you return the products because some of it damaged does the supplier responds quickly? These points can be used as an assessment for your supplier.
Discuss with your staff whether your supplier’s performance is satisfactory. If not, then don’t hesitate to look for alternatives. Because bad supplier performance will certainly affect the availability of your items.
Apply the 80/20 formula
As the rules of thumb, 80% of your profits come from 20% of your stock. By identifying which items brought 80% of the company’s profits, you can give high priority to these items so that their availability will always be maintained.
Notice how many items you sell in a week or a month. Monitor the items flow carefully because 80% of your company’s income comes from these items.
Review how your warehouse staff receive stock
Maybe this looks trivial. But how your warehouse staff receives stock influences the stock condition in the warehouse. If your employee does not treat the items well when received them from the courier, then do not be surprised if the number of returns will be high by the end of the month.
Therefore, standardize the process of stock receiving. Train your employees as well as possible so that the item quality will be better maintained and the returns can be reduced to a minimum.
Sales reports analysis
Maybe what you have been doing all this time is analyzing whether today’s sales are better than yesterday. Then you develop a strategy on how to maintain the sales figure or increase it.
But what we mean by this point is a much deeper analysis. You need to find out why some items sell faster at certain times or otherwise. Are there trends that affect sales? Are there items that always sell together?
Those data will be very useful if you want to hold a promotion. For example, special payday promos, or buy one get one for items that are always sold together.
Restock your goods yourself
There are several companies that use vendor services to order goods. However, we recommend that you do not do this. Why? More often than not, these vendors do not understand which items are in high priority and which are not.
As a result, you are going to be overwhelmed when the demand from consumers suddenly rises. Therefore we encourage you to do this job yourself. You can use inventory management software to help you make the purchasing process easier.
Investing in inventory management software
If at this time you have just started your business, maybe managing your stock control items is not really time-consuming. You can control your inventory manually because it only has a small number of items.
As your company grows, your inventory will eventually grow. At this time, it is certain that managing your stock control manually is not possible anymore. It is time for you to invest in inventory management software.
However, before you decide what software you want to use, make sure the software meets the following criteria; equipped with comprehensive analysis, and it is easy to use.
Use software that can be integrated with other software
Using software that can manage your stock control is definitely helpful for your company. However, it would be better if your software can be integrated with other software, such as accounting and POS.
By integrating your software, your entire business process from upstream to downstream will run better. Starting from the purchasing process that automatically runs when items availability is running low, then recorded in the inventory system so you can carefully control it, recorded sales using POS, and the company’s financial statements are made in detail using accounting software.
Read other tips and tricks about inventory management by clicking the following button.