Overcome these Retail Inventory Management Challenges
For any retail venture, the questionable matter is achieving consistent growth and success. The main concern that hampers this growth and success is inventory management that being an intergral part of the supply chain management where all the inflow and outflow processes of product revolve. Any glitch or stall in supply chain activities can result in lost sales, customer dissatisfaction, reputation and potential loss of competitive edge.
No doubt retailers are burdened with myriad of inventory management problems, identifying the root cause can help move towards a process improvement plan to overcome these challenges altogether.
Inaccuracy takes shape in any form such as inaccurate product quantities, bin information or storage locations, pricing and identification. Typically, inaccuracy stems from using the outdated systems, procedures and equipment. Manual counting and paper-based techniques are not only slow and inefficient but also highly prone to errors. You need to redesign inventory practices with modern inventory management solution that implements real-time data collection and automation. New technology will allow workers to perform more effectively in a shorter time frame.
Over and Under Inventory
Under-stocking due to unreliable forecast of demand or over-stocking due to fear of losing sales poses significant business problems on retailers. Over-inventory correlates with the issues of ineffective selling or imprecise ordering that leads to illiquidity, increased cost of storage and management, unnecessary markdowns of prices and product obsolescence. Under-stocking can upset delivery schedules, potential sales and customer loyalty. These are the indicators that link to the need of reconsidering the inventory strategies of buying and adopting technology that handles stock effectively. It gives a holistic view of complete inventory that helps aligning the order of business.
Inefficient processes are nothing but lack of automation that causes needless wastage of time, equipment and employee productivity. Loopholes like products getting touched multiple times or unclear delivery routes creates a challenging work environment for those involved. The key is to have a look at the current standard operating procedures and determine a solution for the gaps found. It’s important for a business to integrate inventory data with a company’s total information system in order to promote visibility especially for decision-makers.
For most companies that spends on inventory and its management software, issues still persist as they try to save on the training aspect. Having unqualified employees manage inventory and operate such software isn’t only less productive but also causes unnecessary stopages due to pereventable errors. To solve this, you can hire people with solid inventory management background and there are vendors who provide on-site professional training on implementation of management software.
What companies mostly do is that they cease inventory operations for a day or maybe days to physically count items and tally the number with that stored in the software. With this being an absolutely unnecessary and outdated approach resulting in loss of profits. At times this may even end up finding some merchandise that didn’t sell. Performing these checks more frequently by touching one section a day can keep you from shutting down operations thereby letting you be more productive. The permanent way to deal with this is using a reliable inventory management system that will keep you updated on the status of your inventory in real-time.
Inventory management solution is the secret weapon to overcome all these challenges. Silver Touch Technologies is a solution expert in providing automated SAP business one retail solution that ensures all parts of the business relates back to the bottom line without a dramatic increase in the cost of doing business. To Get a free demo, call us today on +44 – (0) 127-736-4689 or email us at firstname.lastname@example.org