It is very important for every small retailer to follow some proper inventory management steps. Retailers have a variety of products that they offer, and they have to be prepared for the change in fashion and some items even going out of fashion. Inventory management in such a case helps meet customer’s demands.
Steps in inventory:
- Checking inventory is the first step. Following a good schedule to check inventory is important, in order to check customer purchases. A complete inventory check has to be done at the end of a financial year.
- Next step is to divide the products or items into different categories, and this will help with counting the inventory.
- Display the products where they can be easily accessible.
Here are some tips for managing inventory in a retail business:
1. Buy only how much is required
Purchase the items in small amounts and only how much you require, since the demand keeps changing. This is an important step in inventory management in retail.
2. Clear old stock
Keep a track of old stock and make sure you sell these items so that you can make a place for new and latest items that are in demand. Another step in inventory management is clearing old stock.
3. Give some discounts to sell items
If you want to sell some old items that are still left give some discounts and sell them regardless of the initial rice. In this way, customers would come to take the offer, and the items would be cleared. This is another good inventory management strategy in retail.
4. Use FIFO (First In First Out) concept
This concept refers to the shipment of items that arrives first is displayed before the next order of these same items is placed.
The stock which is the oldest will be pushed ahead in the display so that the customers purchase them first. This is also another useful concept in inventory management in retail.
5. Understand the buying pattern of customers
It is necessary to keep track of products that are in demand or the ones that are preferred by customers and then buying only these products as any other products will be of no use to the customer.
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