A business occasionally runs out of certain items. This happens for a number of reasons: unexpected popularity of a particular item, such as one that has attained fad appeal among schoolchildren; an unusually large purchase, such as buying up all of a store’s hotdog buns for a party; or a failure by the manufacturer to make and ship on time certain items. Stock control is a way the retailer avoids running out of stock through tracking what is on hand, what has been sold and what is on order.
The following are some of the reasons why it is important to do stock management:
Cycling Inventory
Retail inventory consists of what products are on the store shelves plus the products in boxes in the storage room. As customers deplete the stocked shelves, more stock comes out of storage to replace what has been sold. Keeping track of the inventory on hand allows the store owner or manager to know when to order additional stock of the items before they sell out. Having records of what gets ordered allows you to better refine what you sell in the store to maximize your profits.
Organized Sales
As goods are sold, the inventory should decline by the amount of sales. Sometimes, there is less inventory than expected, which normally means goods have been stolen or misplaced. Identifying missing inventory helps the retailer know to improve store security or inventory tracking procedures. Tracking sales over years also helps the retailer know how much to order of certain products at different times of the year.
Flawless Orders
Keeping track of goods on order allows a retailer to verify that replacement stock has been ordered. Monitoring order status alerts the retailer to possible delays in delivery in time to find another source of those goods from an alternate distributor. Manufacturers and distributors occasionally face fulfillment problems due to weather, machinery breakdown, labor strikes, unexpected demand and transportation problems. A detailed system of stock control keeps the customer satisfied and the retailer in business.
The Robisearch Point of sale system has the purchasing and stock control management feature that will help your business keep up with the inventory.