The most important asset in a small retail business is inventory. According to the management, it’s critical to measuring shrinkage, managing costs and improving customer shopping experience. A good inventory system management gives up to date information on what’s selling fast, what you have in stock and what’s en route. This means you will have all the information that you need to spot theft, expand winners, and increase your profits. Here is how to manage your small business inventory
The first step is to instruct the employees to continually fold and organize the inventory. In a small retail, you can always expect the customers to handle inventory. This might result in items being shelved or folded incorrectly. This is why it’s important for the staff to continuously maintain an orderly appearance of the inventory. This will not only improve the overall shopping experience but will also help in managing small retail inventory. While organizing your inventory, you may include details such as
- Product name
- Wholesale price
- Retail price
- Shipping information and description
Create and submit accurate purchase order
Creating and submitting accurate purchase order is also one of the most important things when it comes to managing inventory. Disorderly or confusing purchase order may end up costing the business time and money. You need to set apart a specific day in which to submit purchase orders. This minimizes any chances that you will get distracted with other tasks or letting any errors creep in your management.
Conduct a physical count of the inventory
While managing inventory, it’s also advisable that you conduct a physical count of the entire inventory. Unfortunately, due to some things, inventory shrinkage can occur. This can be because of misplaced merchandise, theft, damage or even loss. It’s, therefore, required that you carry out a physical count of the same to actively manage inventory. This not only keeps the tabs as they occur but also supports inventory evaluation. If the counts are lower than expected, then theft might be the problem and this should be addressed by the management.
Use loss prevention tags
Using loss prevention tags and stickers on items such as vinyl pouches is also very important in the management of inventory. This will help to deter theft in the store. If each piece of item in your store has a loss prevention sticker attached, it forces the employees to handle every single item well before scanning it for the client. The item that has not had its loss prevention tag deactivated will beep when it passed through the sensors alerting you or your employees of any potential mishap.
Well, that is how to manage small retail inventory. However, if you don’t have a business and want to start one simply visit Businesses Buy Sell.