In the modern marketplace of 2020, speed is everything. From setting up delivery lines to processing a customer’s order from purchase to dispatch, moving at a pace is a vital commodity for businesses to possess.
However, the objective of speed is infinitely harder to achieve when disorganization runs riot. This is especially true when it comes to retail businesses and their inventory. A retailer’s entire business model revolves around stocking up on products at the right amount which they are confident can be sold quickly. Here are a few reasons why organization is key when it comes to inventory.
Modern technology can help enormously with organizational duties, and modern Point of Sale (POS) systems are a retailer’s best friend when it comes optimizing efficiency in tasks such as inventory tracking.
These POS systems allow retailers to have an accurate and up to minute breakdown of stock levels in their business. This allows managers to monitor and act appropriately when buying stock items. These systems also capture an enormous amount of sales data, which can help business’ identify key markets for certain products and adjust marketing messages and strategies appropriately.
The organizational benefits can also reach into the accounting department, with many POS systems having the ability to sync directly into accounts software, saving hours of transferring files from one spreadsheet to another and running the risk of duplication errors.
Avoids profit harming empty shelves
The worst thing that can happen to a retailer is running out of stock on a product which is in high demand. Unfortunately, this issue becomes a reality when organization falls by the wayside. Unclear messages about which products are selling well and inaccurate estimates on when items should be restocked are a recipe for disaster.
Demand forecasting has always been a difficult skill to master even with the best intentions. In a recent report, three quarters of supply chain leaders stated that machine learning could be the key in optimising this process.
Until this technology develops, the best thing retailers can do is keep organized, keep an eye on product trends and optimise their logistical teams.
Ensures clarity of communication to the wider business
Disorganized communication leads to confusion which unfortunately leads to stalling and potentially a loss of revenue. Clarity of communication is essential in every department of a retail operation, but especially in the inventory department as even minor occurrences of mixed messaging from data or management from this team can cause severe delays down the supply line.
To avoid this problem, ensure that messaging is clear and concise so that there is minimum opportunity for misunderstanding. Ensure reports are produced in a uniform, familiar format and that managers are communicating a consistent line to all departments.
Clear communication from your inventory team will allow stakeholders to know exactly what the state of play is and what actions need to be taken in order to optimize performance.