6 Ways to Better Organize Your Store Inventory
Inventory management is one of the first key business areas that a storeowner learns to master. Put simply, the term inventory management refers to the overview and management that a storeowner has over their product stock. This involves a good understanding of what products you have on hand, how much of each product you have available, the space that each product occupies (whether it be in the storefront or in a warehouse), and at what rate the products are moving in and out of your store.
One’s mastery of their inventory management results in the accurate fulfillment of customer needs, more cost-efficient decisions in the supply chain, and accountability from everyone on deck in the business site. On the flip side, mistakes in inventory control can result in overstocking or understocking of items, losses due to unchecked negligence, and”in the worst cases”fraud.
If you’re heading a storefront, the onus is on you to stay on top of your inventory. As such, you may be asking yourself: What more can I improve? What steps should I take to keep my store inventory organized and profitable?
The answers to these questions have to do with updated technology, best practices among your staff, and responsiveness to the demands of your customers. For some clear perspective, here are six tips on organizing your store inventory.
- Upgrade your inventory management platform. Once upon a time, as a new business owner, using a spreadsheet to track a small store inventory may have been enough for you. But if you’re on the verge of growing your store, depending on a spreadsheet is not an option. Instead, you should allot part of your budget to update your accounting system, preferably to a Point-of-Sale (POS) system that can also track inventory. There are several benefits to streamlining your accounting software. For one, you’ll get a clearer picture of your finances; for another, you and your staff will have quick answers for customers about what you have in stock versus what you don’t.
- Make sure you have ready access to your store’s bestselling items. Good inventory control also means determining which stocks to prioritize over others. Once you have the numbers on the most profitable food, clothing, tech, or health products in your store, ensure that such items are always in easy physical reach and of a quantity that can meet customers’ demands. This way, you can learn to balance your stock, purchase in a timely manner from your supplier, and lessen back orders from customers.
- Layout your stockroom and designate particular areas for particular items. Even if you don’t have a large storage facility, a clear organizing scheme for the space is important. You can determine the proper use of the space you have in very simple, yet effective ways. Some examples are making a map and supplying each of your staff with a copy, labeling and color-coding cabinets and shelves, or designating alphabetical and numerical shortcuts for product lines.
- Segregate used or returned goods. It would be a nightmare to your store’s profits and reputation if one of your customers accidentally received a defective, used, or spoiled item. These mistakes do happen, but it can easily be avoided with better inventory control. It’s a given that you must be careful with shipping and handling, but if you or your staff members spot an unboxed item or an item that’s not up to par, segregate them from the good stock immediately.
- Orient your staff whenever there will be changes in your inventory plans. Whenever it’s time to do something out of the ordinary from your regular inventory movement”say, when it’s Christmas season and you’re holding a Christmas sale for certain products”keep your staff ready and up-to-date. Inform them about when it’s time to move key items from their storage space to the shelves, and from the front of the store to the back. Doing this should make the deluge of sale season easier on everyone.
- Look into outside storage or warehousing solutions if you don’t have enough space. If your stockroom’s already bursting with product, and you don’t want to clutter the front of house, you may want to explore contracting a third-party storage solution. Search for a local company that can you provide you with additional space in their warehouse. Some charge a monthly rate for the use of large storage crates, while others can rent out entire rooms. Commissioning someone else to take charge of your overflow could give you and your staff some much-needed order, as well as peace of mind.
In summary, don’t wait until tomorrow to straighten out your inventory. Take the proper steps to move your products in the right direction, at a rate you can stay on top of all the time. Eventually, you’ll gain sharper insight on your own sales process, minimize your potential losses, and improve your overall business efficiency.
