Running a retail business can be stressful. A poorly managed inventory can be an unnecessary annoyance, especially for larger companies that carry thousands of items. Inventory management is essential to ensure that products are in-stock, overselling does not happen, and overstocking is rare. Good inventory has little holding in the back and can save money and time that can be spent on other ventures like marketing. Here are a few ways to stay on top of inventory by employing strong management skills.
Setting Par Levels
Par levels are the minimum amount of product that needs to be in stock at all times. When stock dips below the par level, there should be a predetermined notification through inventory management software to order more. Depending on how fast and how often the stock dips below par level, ordering the minimum amount to get comfortably above par levels ensures staying ahead of the game while not keeping too much in stock. Do some research when setting up par levels, systemizing the ordering process. This also makes it easy for inventory staff to order products like wholesale new home gifts.
Relationships with Suppliers
Finding suppliers that have great products and equally excellent customer service can make inventory management simpler. Wholesalers that have high-quality products are less likely to need to return them for manufacturing issues or incorrect orders of products in high volume. When issues arise, as they definitely will, having a good relationship with wholesale suppliers can make solving problems less stressful. Minimum order quantities that are negotiable and available for fast restocks are critical for retailers. Make sure good communication exists on both ends, from discussing inventory increases to pausing orders. Suppliers make or break inventory management, so choose wholesalers wisely.
First In, First Out
One of the most basic principles of successful inventory management is “first-in, first-out.” This means that the oldest stock gets sold first, not the newest stock available. By making sure that products like wholesale home furnishings get sold in the first-in first-out order, retailers and companies stay ahead of expiring trends and obsolete products that don’t sell. Make sure that old products are easy to find and marketed as consistently as newer products.
Predicting demand is difficult, especially when planning how much product to order. From trends in the market to previous year sales, be aware of which products to market. Wholesale holiday gifts well in advance before December, and summer products need to be available during transition to spring. Missing out on important seasonal transitions and holidays can lead to unnecessary surpluses that can get shelved until the following year. Accurately determining demand can make or break inventory management. Talk to supplier to learn about their previous inventory experiences and current trends.
It’s possible to minimize losses due to overstocking or missing products through improved inventory management. DEMDACO is a top-selling wholesaler of timeless products for seasonal décor, year-round gifts, and important life events.
DEMDACO offers wholesale home furnishings and other great products. Founded by Demi and Dave Kiersznowski, the company’s lovingly-crafted goods help people celebrate their friends, family, and special moments.
For additional information, visit Demdaco.com
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