“Busy, busy” is certainly an operative phrase for retailers during this time of year. As always, the holiday shopping season is a pivotal time for businesses of all sizes. Customer demand skyrockets and competition intensifies. As a business owner, maintaining well-managed inventory is essential to meet customer expectations.
Do you wish to maximize profits and avoid the pitfalls of overstocking or understocking? Of course you do! Proper inventory management can help you to avoid missed sales opportunities, wasted resources and dissatisfied customers.
Get a clear understanding of your inventory needs.
The vast majority of retailers expect a surge in shopping during the holiday season. Is your store capable of pleasing consumers who are eager to purchase gifts, decorations and seasonal essentials? To keep pace with demand, it is imperative that you have a strong handle on your store’s inventory levels. Nothing frustrates customers more than finding their desired products are out of stock.
Utilize inventory management tools. They will help you to forecast demand based on past sales data and trends. By doing so, you ensure that your shop’s shelves remain stocked with the right items. Naturally, you should use sales data from previous holiday seasons. It will help you to identify your best-selling products so that you can plan ahead.
Be careful not to overstock.
Some retailers get a little order-crazy in anticipation of the holiday rush. However, it’s important to not overstock. Remember that excess inventory ties up capital that could be used for other operational needs. As well, overstocking increases storage costs. Keep in mind that some seasonal items that don’t sell well, during this time of year, may become dead stock. This often leads to markdowns and reduced profits.
Oliver Munro of Unleashed Software recommends that you use an ABC analysis. It categorizes inventory based on its value to your business, organizing stock from most to least valuable. “To conduct an ABC analysis, categorise your products into three groups,” explains Munro, “A group: The top 15% of your products, contributing the most to your annual revenue. B group: The next 20%, with medium value to the business. C group: The final 65%, and the least valuable products in your inventory.”
Prioritize customer satisfaction.
It should go without saying that disappointing shoppers, during the busy holiday shopping rush, is something you should avoid at all costs. Proper inventory management plays a huge role in satisfying customers. As mentioned, stockouts can leave customers disappointed. Not to mention, disorganized stockrooms and slow order fulfillment can tarnish your brand’s reputation.
A well-managed inventory, on the other hand, ensures that customers receive their purchases promptly. This is vital whether the shopping is done in-store or online. Satisfied customers are more likely to return and recommend your business to others. Of course, this can boost your brand’s reputation and secure future sales.
Enjoy the benefits of Taliup Register!
By taking advantage of Taliup Register, your business can enjoy effortless inventory management. Use it to simplify your workflow and easily import thousands of products and SKUs with a single click. Through customized re-order notifications, you can stay on top of your inventory levels and replenish stock before it runs out.
Taliup Register offers powerful insights into your inventory performance, allowing you to optimize your in-store stock levels and reduce waste. To learn all about it, please don’t hesitate to call Unity Payments at 1-800-661-3761 or email us at info@unitypayments.ca.
