Managing supply availability for merchants may be difficult as well. Maintaining sufficient inventory to satisfy consumer demand without using up too much cash in inventory is a tricky balance, particularly when dealing with supply chain issues and fluctuations in demand. For merchants to maximize stock availability and satisfy consumers, real-time inventory management systems are essential for tracking and managing inventory.
What is stock control and how it can be improved will be explained by ConnectPOS in this post.
What is stock control?
A set of operations aimed at controlling the movement of items through retail settings is known as stock control, commonly referred to as inventory management. Although most small firms today utilize digital inventory systems for stock control, some still use paper ledgers.
How can retail stores improve it?
Implement a method for managing your inventories
By automating labor-intensive, error-prone manual inventory monitoring operations, an inventory management system may boost productivity and accuracy.
A robust inventory management system gives organizations access to consolidated, real-time data about stock control and status as well as analytics to assist them to choose the appropriate quantity of inventory based on historical and anticipated patterns in the supply chain and customer behavior.
Use based on demand
Retailers may determine how much inventory they need based on past demand, seasonality, and sales projections by using demand forecasting software. Forecasting tools assist businesses in making better decisions and lessen the possibility of stockouts or overstocking.
Whether deciding when to restock certain SKUs, where to keep them to maximize fulfillment, and when to go on sale, merchants may use the software to their advantage.
Establish desired service levels
To monitor and enhance stock availability, it is crucial to track performance over time. One strategy to accomplish that aim is to keep an eye on the company’s capacity to deliver desired service levels.
“Service level” refers to the likelihood that you’ll be able to satisfy all client demand within a specific time frame, or, in other words, that you won’t have a stockout when stock control is well-managed. These service level objectives can be used by retailers to establish minimum order requirements or safety stock maintenance levels.
Decide when to restock your stock
A store can dependably decide when to place product reorders if they have an inventory management system that offers timely stock control data as well as other data, such as demand projections and service level objectives for each SKU. Some inventory management systems alert workers when inventory levels are low and determine to reorder points based on previous trends and projections.
Distribute stock across several sites
Inventory can be positioned closer to clients so that the business can deliver them more rapidly by dividing it among many warehouses. Distributing inventory, though, makes it more difficult to manage product availability.
Retailers require real-time stock control information and demand estimates to choose which SKUs to stock at each location and monitor availability throughout the business.
Conduct regular audits
It’s crucial to make sure that the data in spreadsheets or inventory management systems accurately depicts the situation in warehouses, distribution centers, and retail locations. Audits, which should include physical inventory counts, may help retailers find discrepancies and fix inefficiencies that drive up storage, shrinkage, and depreciation costs.
Retailers are searching for a middle ground when it comes to stock availability – not too much stock, nor too little, but rather just the perfect amount to fulfill demand. Improving stock availability while reducing inventory costs and meeting customer expectations requires real-time data, past sales trend research, and forecasted shifts.
In the present cutthroat business environment, selecting the appropriate stock control is essential since it might be the difference between success and failure. Let’s ConnectPOS help you for this solution, contact us right away!