Did you know most retail stock-outs are directly related to poor inventory management? According to a recent article by Harvard Business Review, 72% of stock-outs happen due to faulty in-store ordering and replenishing practices—retailers ordering too little or too late, generating inaccurate demand forecasts, or otherwise mismanaging inventory.
Why is inventory management essential for retail businesses?
Businesses lose out on both profits and sales opportunities due to inventory mismanagement. Here is how regular inventory management may help:
- It helps in increasing profits while reducing loss and waste – A regular inventory management gives a realistic view of what products are in stock and the items that are not selling. It also helps in planning and forecasting for better replenishments and purchase decisions.
- Helps to monitor real-time stock levels – Proper stock-taking provides clear data on the products available. It helps businesses clearly check the cross-reference of the data of the products they have against the kind of products that they should actually have.
- It helps in monitoring seasonal stock along with expiry dates – Monitoring seasonal stock is essential. If a retailer has products in stock that do not reflect in inventory, they will incur losses of gross profit due to a lack of direct sales and disposal of expired or obsolete stock.
- Improves delivery and customer expectation management – When your inventory management is streamlined it helps you reduce stock-outs, manage delivery timelines and boost customer satisfaction.
- Reduces time for inventory management – Deploying an efficient technology for inventory management can help you reduce the time spent on tracking stock in hand and products on order. Automation also helps save time spent on recounting records.
Proper inventory management can help businesses detect discrepancies and facilitate appropriate inventory reconciliation. It helps to get a clear picture of sales during any given period and aids better buying decisions throughout the year.
For all of the above, you can count on Scribe Counters. Our proven industry experience substantiates our professional services that help your business with efficient inventory management. We can help your business speed up stock tracking activities. Through technology-driven initiatives and a trained workforce, we help you achieve quantifiable accuracy. Contact us today to find out how we can help you run your business better.
