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Inventory management requires accuracy. Inventory
management software ensures accuracy and allows
you to audit the receivi...
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A to Z Inventory

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Understanding all aspects of your inventory is essential to run a successful retail business. We have compiled a list, from A to Z, of everything you need to know about your inventory!

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A to Z Inventory

  1. 1. Inventory management requires accuracy. Inventory management software ensures accuracy and allows you to audit the receiving process and conduct accurate purchase order planning for optimal profit. A ACCURACY If you understand how your inventory is performing, you can develop a buying strategy that ensures you always have the right inventory, when your customers want it. BBUYING Costs of inventory go far beyond what it takes to stock a product, so it is important to be aware of which products are selling well and which items are simply taking up space and draining your resources. C COST Drop shipping products lets you transfer customer orders directly to the manufacturer, so that you have open space for inventory in your store. DDROP SHIPMENTS Standardize your inventory process and create procedures that cover the way products are bought, shipped, stocked, and counted before they can be sold. E ESTABLISH PROCEDURES Forecast demand by analyzing past data and properly stock your store so you can be as profitable as possible. FFORECAST To know how your business is really doing, run reports often and keep track of your physical inventory on a regular basis. G GATHER INFORMATION Knowing where to place your inventory on your floor and identifying your hot selling spots can help you move low-performing inventory quickly. HHEAT-MAPPING Remember that your inventory is an investment directly tied to your cash flow. If you’re buying and selling the wrong products, you’re going to miss out on profit. I INVESTMENT Make sure that all of your employees, from the cashiers to stock floor managers, know managing inventory and following the processes you’ve put in place are a crucial part of their job and responsibility. JJOBS Knowing your sales performance of certain styles, vendors, and classes will help make sure you have the right quantity. K KNOWLEDGE Liquidate non-moving items to make space for profitable inventory. LLIQUIDATION Model stocks automate the fill-in process and automatically generate purchase orders so that you can save time, avoid mistakes, and ensure that your store is always well-stocked. MMODEL STOCKS Account for all items you can’t sell by marking them “non-sellable” and keep your data as up-to-date and accurate as possible. NNON-SELLABLE You’re stuck with inventory no one wants to buy, so get rid of it by marking it down, donating it, or reselling it, to create space for profitable inventory. OOBSOLETE INVENTORY Be sure to count your inventory regularly to ensure accurate data and account for missing items. Get in a routine of conducting physical inventories at least twice a year. PPHYSICAL INVENTORY USE YOUR DATA When making buying decisions about your inventory, it is important to utilize the data at your disposal, so that you are as informed as possible. U VENDORS Consult with your vendors to help you make purchase decisions on new inventory. V Determining the correct quantities of inventory you should have on-hand is the key to running a profitable business. QQUANTITY Receiving shipments of inventory the right way and being able to review receiving processes increases your inventory accuracy and profitability. RRECEIVING Why should you care about inventory management? Having the right product in the right place at the right time is the reason why sales occur. Inventory influences sales, sales drive business, and business creates profit. WWHY By implementing a smart inventory strategy, almost 25% of inventory management costs could be eliminated or reduced. XEXECUTE STRATEGY Find the right software to help you manage your inventory and run reports using real-time data so you can make more profitable business decisions. S SOFTWARE If you own multiple stores, transfer your inventory between stores to meet your customers’ needs. TTRANSFERS Choose the brands and vendors that will yield the highest profits. Y YIELD You should aim for zero missed opportunities. Keep as much product on the sales floor as possible and make sure your inventory is always well-stocked so you never miss a sale. ZZERO UNDERSTANDING ALL ASPECTS OF YOUR INVENTORY IS ESSENTIAL TO RUN A SUCCESSFUL RETAIL BUSINESS. WE HAVE COMPILED A LIST, FROM A TO Z, OF EVERYTHING YOU NEED TO KNOW ABOUT YOUR INVENTORY! ricssoftware.com 800.654.3123 @ricssoftware

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