Benefits of Stocktaking For Small Businesses

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Benefits of Stocktaking For Small Businesses – Stock taking is the process of physically counting the actual stock you have on your site(s). Apart from your business address, sites can also include any storage or warehouse facility you may own or are renting. It is the process of counting the actual physical stock and checking the numbers against the numbers you have on your books. A stock take will identify any issues that arise in a loss of stock as well as offer data to conduct your own regular product performance analysis so as to maximise gross profit margins. Businesses need to conduct stock taking for he following benefits:

Increases profit while reducing loss and  waste

Businesses can increase profit margin by getting a realistic view of what you have, what is selling and if things are going wrong to capture them at the earliest opportunity. Stocktaking is the physical counting of all stock and matching it against the stock numbers you have recorded in your books/software.

Monitor real time stock levels

The data of the Stock take will clearly be the most up-to-date check and cross-reference data of what you have to what you should have and what you actually have. Unfortunately, theft and damage can occur. The stock take will uncover these as discrepancies and allow you to be proactive and responsive to this unfortunate reality in a timely manner, again showing the importance of stocktaking for a business.

Monitor seasonal stock and stock with expiry dates in a timely manner

Time is essential when it comes to seasonal and stock with expiry dates, simply because they are time restricted. So, you must monitor this type of stock and ensure as much of it is sold before you are forced to sell it at a reduced price. If you do not maintain an importance of stocktaking, you will not know what you have and this will lead to a loss of gross profit not only in the direct sales as expired or obsolete stock may need to be thrown away but also in the cost of warehouse / storage if you are unaware and so this stock is taking up the space you could release for new stock.

Review pricing strategies to keep up to date with your current purchase prices

You can monitor through carrying out stocktaking your purchase prices at the time of stocking against the latest purchase prices as you will be able to monitor and track changes in the market and how it will impact your margins. It may be that there are certain times in the years when the purchase prices rise and so you will be able to make a calculated decision based on your sales report generated from the stock take if it would be worth making an earlier investment than originally planned. It will also give you an idea if you should be looking at the pricing of your products.

Getting your assets right on the balance sheet

Inventory is the balance sheet entry as an asset, hence, very important. This number has to be as accurate as possible, which alone emphasises the importance of stocktaking. The data you will be collecting and updating as a key purpose of stocktaking has a direct financial impact has ‘asset gain’ or ‘asset loss’ (also known as shrinkage). This is the reason why the accuracy of inventory value is subject to all internal and external financial audits.

Providing accurate stock records of which products are performing well

The accuracy and regular process of stocktaking will help with making an informed, data-backed decision to invest in the right products, as it will show you which products are selling and which are not and therefore what to invest in. You will also be able to see if there is a dead stock that you should think about possible flash sales to shift the stock.

Reduction of stock holding

Achieving optimal stock levels versus consumption levels will ensure stock holding is kept to a minimum at all times. Reducing stock holding is important as it ties up cash and reduces potential losses. This is particularly relevant on draught beers and other products that have relatively short best before dates. Stocktaking will point out where stock holding can be reduced, freeing up previously tied up cash.

Improved working conditions

Stocktaking will uphold required working conditions, such as a tidy, organised and efficient operational working space. Operational efficiency relies on clear and organised work spaces. Stocktaking provides the data necessary to keep stock holding to a minimum at all times. This means that the space you have in your establishment is utilised as effectively as possible. More space means better movement in the venue for your staff (with automatic health and safety benefits), as well as better oversight of the stock holding areas, such as the cellar and fridges.

Conclusion

Above are some of the Benefits of Stocktaking For Small Businesse.

Stocktaking is foundational to stock control management. It provides you with the information you need to run a profitable and operationally efficient business.

A good stocktake report will include: cost prices from supplier invoices, selling prices based on price tariffs and wine lists, opening and closing stock figures, purchases and sales for each individual stock line, the value of sales at cost and selling price, gross profit percentages achieved on each stock line and the number of days stockholding.

Speak to Robisearch Limited today about our services and start benefitting from stocktaking today! Contact us on 0716413386 or 0780655987.

 

 

 

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Benefits of Inventory Management to Small Businesses

Inventory management refers to a business’s process for keeping track of everything it owns. Businesses use inventory management software not only to account for everything but also to conduct inventory costing. It also assists with creating work orders and producing other documentation important to the functioning of the business.

It helps a business avoid the costs or lost revenue that come with overstocking or running out of supplies. Below, we discuss more of the benefits.

It saves time through automation

Workers spend a lot of time on manual data entry and form-filling. Inventory management software options automate these tasks. This helps in saving your workforce time and freeing them up for other high-priority tasks.

It improves order accuracy

Returns are costly for a business. Effective inventory management improves the accuracy of your filled orders and lowers the likelihood that you will send the wrong product to the wrong customer or submit the wrong order to the wrong supplier.

Increases productivity

Organized inventory management leads to a more efficient and productive workforce. If you want to get more out of the workforce you have, give them the tools they need.

Prevents overstocking

Inventory management tracks what inventory you have and helps forecast what you need, reducing the likelihood of overstocking.

Prevents shortages

Inventory management helps managers understand what current inventory levels are and what is needed to meet demand.

Makes your company more organized

Inventory management organizes your business on a foundational level, which helps the company run better. When things are chaotic in the warehouse, they’re chaotic in the front office. By having control of your inventory, you can focus on high-priority but non-urgent tasks that will grow your company, rather than running around putting out fires all the time.

Enhances customer satisfaction

Satisfied customers are returning customers, and good stock management is how you ensure that. By filling customer orders on time and accurately, your customers will know that they can depend on you to satisfy their needs.

As a result, you’ll build a strong base of loyal customers who will serve as the foundation for your future growth as a company.

As you can see, there are a number of benefits you can expect to experience by implementing inventory management software at your business.

From boosting the accuracy of your inventory to lowering your business costs, the advantages are extensive, and this could be just the thing you need to unlock further business growth. Take your business to the next level, contact Robisearch Limited on 0716413386 or 0780655987.

 

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FEATURES TO LOOK FOR IN AN INVENTORY MANAGEMENT SOFTWARE

 

Inventory management software is a tool that automates every aspect of inventory and warehouse management, streamlining the tasks required to effectively track inventory, manage reordering and update accounting data.

Since inventory management software is important to the daily operations of a business, it’s imperative that you select a solution that is reliable, effective and has the features you need. The following are some of the features that you need to look for:

  • Point of sale integration: An integration with your point of sale system helps retailers automatically track when a product sells, whether in a physical storefront, on an e-commerce platform or through another sales channel. When a product is scanned or checked out in an online cart, the point of sale system automatically updates the inventory management system, accounting for the sale in real time. Coupled with automated reordering, this feature allows retailers to ensure they always have a suitable amount of stock to quickly fulfill orders.
  • Inventory catalog: For retailers, it is important to be able to catalog inventory not just by the type of unit, but also by distinguishing characteristics like size, color and other distinguishing characteristics. For example, if you sell shoes, you should be able to specify shoes down to the specific type.
  • Automated reordering: When your inventory level is getting low, it’s important to order more with enough lead time to avoid running out, especially for your bestselling items. Many inventory management systems offer automated reordering; simply set your minimum quantities for each item and, when that number is reached, the system will automatically generate a purchase order to send to your supplier to refresh your stock level. Smart inventory management systems can also automatically optimize your reordering points and reordering quantities per item based on historical sales data to keep your inventory level at ideal quantities.
  • E-commerce integrations: Most retailers now sell across every sales channel – physical storefronts, e-commerce websites, online marketplaces like Amazon and more. It is critical for your inventory software to track sales on all channels so you don’t accidentally try to fulfill more orders than you have stock. Integrations with your e-commerce channels will help ensure you don’t run into this problem.
  • Product cost analysis: Product cost analysis tools not only track your raw materials and finished goods, reordering the necessary components when they hit minimum levels, it also helps predict your labor costs and operating costs, such as machinery acquisition and maintenance expenses. Look for an inventory management system that can generate a bill of materials that includes a description of all these costs
  • Forecasting:  Forecasting is the process of analyzing historical production and sales data to predict what future order management needs will look like. A forecasting tool can help improve the accuracy of this process. Software with a forecasting feature will analyze your data to determine optimal reordering points, hiring recommendations, and even shift schedules required to meet your targets and continue growing.
  • E-commerce integrations: E-commerce used to be only for retail, but today more manufacturers are selling directly to consumers. Finding an inventory software with e-commerce integration is also important for manufacturers, even if they don’t currently sell directly to consumers online, because they could use it streamline sales to their retail clients, or they could even expand to include an additional sales channel in the future.
  • Barcoding: Barcoding is the feature that warehouse management systems use to track the inflow and outflow of products in storage facilities. Workers can scan items in as they’re received, scan them when they’re moved to a specific aisle and bin, and then scan them again when they’re out for shipment – automatically tracking all movements.
  • Inventory management integration: While warehouse management is a subset of a wider inventory management strategy, the two are closely related and should be integrated. Look for a warehouse inventory management system that is seamlessly integrated with your larger inventory management software – most vendors offer this option.

Inventory management is key for any business that maintains stock of goods or raw materials on hand. While inventory management has  historically been a manual process, Robisearch Limited has eliminated the need for a labor-intensive and error-prone manual inventory management system. The Robisearch Point of sale has inventory management software that helps streamline the process, reduce errors and help businesses optimize the way they maintain and order the products they sell. Reach us on 0716413386 or 0780566987  for more information or any inquiries.

 

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