The strategy you employ to manage inventory in your electronics store determines how smooth your sales are. Poor management of store inventory negatively impacts sales. Customers cannot purchase what you don’t have in stock. Be it because of a surge in sales or errors in prioritizing the purchase of stock. Either way, it hampers not only your profits but also customer satisfaction.
Inventory management is vital for several reasons. It has the potential to make or break an electronic store business. Poorly managing store stock leads to many downsides. On the flip side, there are a lot of upsides to managing inventory effectively. Some notable outcomes are reduction in expenses, improvement in customer satisfaction, and an increase in profits.
A series of processes like keeping a track of your inventory, planning purchases, and predicting sales improves inventory ROI. But if you’re using spreadsheet software or paper-based tools, all of these activities are cumbersome tasks. Whereas, electronic store POS systems make managing those activities a painless process. In this article, we discuss how an electronic store POS improves your inventory management process. Let’s begin.
The three objectives of inventory management
Before we dive into the inventory optimization process, let’s discuss the three primary aims of inventory management.
To minimize losses and wastage
A significant challenge that plagues efficient inventory management is losses and wastage. It is the result of poor tracking and handling of inventory. Keeping products from going missing or deteriorating involves the following steps:
- Proper Storage – Items that require special storage conditions need handling accordingly. For example, frozen items, and fragile items like glass materials.
- Arrangement of Items – The front of the store or easily accessible areas in the store are good places to shelve fast-selling items. It results in better sales.
- Avoid Overstocking – Purchasing an unnecessary surplus of products can result in product expiry, and thus wastage. Analyzing how much stock is enough prevents this problem.
Optimize inventory stock
Having enough inventory at all times ensures consistent fulfillment of customer orders. As a result, you will have happy customers and steady sales. Optimizing inventory stock involves preparing the inventory for seasonal changes. The demand for products changes according to seasons. For example, rain gear sales peak during monsoons. So stocking on them as the season approaches fulfill consumer needs.
Analyze customer purchase patterns
Another objective of inventory management is to analyze and learn key stock insights. Purchasing items in bulk without considering product demand can lead to poor sales. By analyzing customer purchase patterns, you can prioritize popular stocks and halt the procurement of low-demand items.
Role of POS system in optimizing electronic store inventory
Supplier data insights
There are many parameters to track during the arrival of goods to your electronic store. They include the time of placing the purchase order, the time of receiving it, and malfunctioning stock.
With a POS solution, you can quickly enter these details in the fields of the software. At the end of the day, week, month, or year, you can assess the reliability of your suppliers through supplier reports. Thereafter, you can make critical business decisions. Switch to suppliers near your store for faster delivery or to more reliable ones.
The stock you purchase must align with the needs of your customers. When you have goods that customers barely purchase, your store ends up accumulating redundant inventory. It hampers store revenue and also occupies a considerable amount of space. So knowing what products are fast-selling and what products are slow-selling is vital. Manually analyzing the fast and slow sellers is a daunting task. On the other hand, it is incredibly easy with a POS solution.
The demand for electronic goods is dynamic. It is not the same throughout the year. There are noticeable dips during specific months. And a considerable rise in demand during others. Purchasing stock without considering these fluctuations leads to hiccups in the inventory management process. It results in having either redundant stock or scarce stock.
POS software for electronics stores crawls through transactional data over many months and years. And then it reveals when you can anticipate a surge and fall in electronics demand. Prioritizing inventory purchases according to that boosts store prospects.
Replenishing stock is a routine task in electronic stores. When inventory plummets, repurchase orders go out to suppliers. Any delays in detecting a fall in stock levels will consequently delay the acquisition of the stock. Mishaps are a result.
With an electronic store POS, you won’t need to monitor your inventory levels constantly. All you need to do is configure the stock threshold amount. Whenever the quantity of an item falls below the threshold, the software automatically sends out purchase orders to respective suppliers. The automation of repurchases frees up your time and enables you to replenish goods on time.l
The inventory management process doesn’t stop once you receive goods from suppliers. Tracking stock as it moves from one warehouse to another and exiting the store in the form of sales is critical. Making note of these movements using spreadsheet software or paper-based tools is a hassle. It requires manual intervention and runs the risk of creating multiple versions with different information. POS systems can integrate with barcode scanners. Using them, you can efficiently track stock movements and log sales.
Electronics store Point of Sale software enables you to optimize your inventory management process. It gives you insights into your suppliers, inventory performance, and more. As a result, your business runs smoother, more efficiently, and rakes in bigger profits. If you’re looking for a world-class POS, then get SmartPOS. It is our highly acclaimed retail management solution that is cloud-based, secure, feature-packed, and user-friendly. Contact us to know more.