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!

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!
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