How a retail store manages its inventory directly impacts customer satisfaction and profitability. The formula is simple. The greater the sale of stock, the higher is the business revenue. That is the way in which the inventory works on a surface level. A deeper look will reveal that there are many dynamic factors at play. They include stock levels, varying demand for products, and more. Proper management of those factors leads to efficient inventory control.
Failing to implement effective inventory management practices hinders the prospects of retail stores. In that scenario, it would not be a surprise to see inventory wastage, plummeting sales, overpopulated warehouses, and more. Executing a stock control strategy with a Point of Sale software application maximizes profits. Management becomes less complex as well.
In this article, we discuss the best tips to control your store’s inventory using a POS solution. Let’s get started.
Challenges that hinder stock control efficiencies
A series of challenges prevent retail stores from reaching their full inventory potential. They include:
- Lack of visibility into the inventory
- Data inconsistencies
- Poor optimization
- Inefficient inventory management system
POS systems help tackle those challenges and run retail operations smoothly.
Tips for best inventory control using a POS application
Set minimum stock levels
Letting the stock of certain products fall below a threshold results in acute shortage. Replenishing stock during that time can be cumbersome and can consequently fail to fulfill customer demands.
A POS system provides the tools to specify minimum stock levels. On configuring them, you will receive alerts whenever products in your store require replenishment. It saves you from staffing an employee to inspect stock levels.
While the goal is to turn over maximum sales in every store, there can be stock inadequacies across your stores. One shop might have a surplus of inventory, while another experiences a shortage. A POS software application helps balance the stock levels across multiple outlets with a few clicks of a button. Using its stock transfer modules, you can ensure that all your stores have enough stock.
Store stock in proper conditions
Different inventory items have varied storage requirements. While some don’t require any particular method of storing, others can be fragile. Glass bottles and frozen food are some examples.
A POS solution allows you to map out inventory storage. It lets you decide which warehouse you want to store the goods in and the shelves on which to arrange the products. As a result, your inventory items are less susceptible to spoilage and damage.
Assess supplier reliability
A POS application logs critical inventory timestamps. They include placing a purchase order and the time it arrives from suppliers. Assess the duration of delivery from the time of order placing. If deliveries take too long from a supplier, consider changing suppliers. After all, slow deliveries impact sales and trample on store prospects.
Audit inventory regularly
Every once in a while, you will need to check if the products in your inventory match your records. By auditing your store’s inventory, you can detect unexpected shrinkage, loss of items, and other discrepancies. It can be a cumbersome, time-consuming process. On the bright side, a POS system that integrates with barcode scanners speeds up auditing.
Analyze stock reports
Next, know what products are fast-selling and slow-selling. It allows you to prioritize inventory purchases. By purchasing those items, you minimize having redundant inventory in your store. That reduces inventory stagnation and loss of sales.
A Point of Sale software application generates comprehensive inventory reports. Interpreting them gives you the information you need to optimize store stock.
Regularly having products go out of stock hampers sales potential in the store. Errors and speed inefficiencies in handling inventory translate to poor inventory quality too. On the contrary, effective inventory management results in exceptional sales and customer satisfaction. That, in turn, attracts more customers and leads to a significant improvement in customer footfalls. And with a POS billing software application, you can manage several inventory areas from a single location.
Get SmartPOS to control and manage your stock. It is cloud-based, feature-loaded, and uses the latest security protocols to safeguard business data. Reach out to us to learn more.