Tracking inventory is a necessity for every store, no matter how trivial and unenjoyable it may seem. Making sure to have the right amount of products available at all times is essential to maintaining a store’s reputation among its customers and remain able to service their needs. Here are just a few of the signs to keep an eye of when experiencing shrinkage in inventory products.
Inability to Keep Up With Demand
Keeping an eye on sales will help in determining which stocks will need refilling and what products should be ordered. Finding the right place to purchase the required products and maintaining good discipline in inventory management is a detailed in-depth process. If a store is in a position where deliveries are being delayed and shipping dates are being missed, it is either of employee incompetence or insufficient amount of products in stock. A small business that is just starting up can “assume” the number of goods available, however, as the store expands, assuming things is no longer a good practice and a proper management plan should be put into place.
One of the prime factors resulting in stock’s emptying is not recognizing the ever-changing customer trends. Talking with local and other Denver distributors regarding customer demands can be very beneficial. Seasons, fashion, individual interests, these are all things that change regularly and being able to recognize these shifts in people’s purchasing habits is essential in future forecasting and making sure that the right products are available at the right time.
Unhealthy Flow of Goods
For a store owner, the reality is that much of the loss in profits is due to inaccurate inventory counts. Flaws in inventory management will lead to a business plagued by inaccuracies in the number of products available. These flaws can lead to goods not being available when required which will result in loss of sales and disappointed customers. Another would be over-accumulation of goods which will lead to great expenses and waste of space just to maintain that stock.
Obvious signs that a store may not be ordering enough products is the lack of sales. Optimal flow of inventory would be when the purchasing of goods is in sync with the number of goods that are sold. Unsold goods will lead to the accumulation of products and the ordering of additional goods should be put on hold until the current ones are being sold.