Why Retail Inventory Management is the Most Important Factor for Today’s Retailer

A retail inventory management database is an essential tool for any retailer, big or small. The database holds all the quantities and details of the items you stock as well as information about your product suppliers. By using such a system, you can replace tedious manual methods of inventory control while reducing time, effort and cost.

Control

Keeping control of your inventory is important for the profitability and efficiency of your business. A retail inventory management system will give you an up-to-date and accurate overview of your stock levels for every product so you can meet customer demand without the risk of overstocking which incurs unnecessary costs and reduces your profits.

Forecasting

An inventory database provides reports that help to identify trends and accurately forecast future demands. Reports that are able to cover stock usage over a particular period of time identify monthly or even weekly demand and will also highlight any changes that occur to normal usage as a result of promotions. If you’re planning a sales campaign, for example, you can use the historical analysis from your retail inventory management system to ensure you have enough stock to meet additional demands.

Being able to analyze stock changes in your inventory will help you identify the products that are selling quickly as well as the slow movers. This level of insight means you can rationalize the variety of items you stock to focus on those that are your profit-makers.

Automation

A database for inventory can also help improve productivity in your store. Rather than keeping staff busy checking quantities of products, you can quickly run reports on your stock levels or simply set up your system to flag stock reaching a particular level.

By integrating your inventory system with your checkout system, you can update stock levels automatically. Improved stock control ensures you will always have products in stock when a customer comes in. In turn, this improves customer satisfaction and frees staff from controlling stock to helping serve customers.

Delivery and Ordering

Accurate information in your stock levels enables you to improve ordering and delivery efficiency. You can use your inventory database to determine opportunities to reduce delivery costs by grouping certain orders and maintaining adequate stock levels. Having supplier information on hand also makes it easier to place orders or find other suppliers if one cannot keep up with your delivery requirements.

All-In-One Solution

Vision33 offers a fully integrated mobile point of sale system that includes retail inventory management. For more information about the importance of inventory management for retailers, download the SAP Business One for Retail brochure.