Retail businesses will thrive or decline in direct relation to their ability to effectively manage their stock. Whatever the size of the retailer, it it imperative they have the right stock, in the right place, at the right time, at the right landed cost so that you can maximise sales, profit and customer satisfaction. You want your customers to have the best possible experience shopping with you so that they write rave reviews and recommend you business. The only way to do this is to have stock that they want, delivered to them on time and packaged in a way that delights, and maybe even surprises them.
This is no mean feat, so here are Retail Collaborative’s top 7 tips for effective stock management:
- Know what you already have in units and value, and where (in store, in the warehouse, in transit, on order)
- Have a simple, smart and effective clearance strategy because every retail business needs a way to clear excess inventory.
- Know your storage costs; the longer inventory stays in your warehouse, the more it is costing you. What extras is your fulfilment centre charging you for? Can you do without them?
- Don’t let your inventory get “stale”, especially seasonal products. It is often better to clear stock out at the end of a season than hold on to it, unless another selling opportunity is coming up in the short term.
- Know your numbers. What sells, and why? What didn’t work, and why? If you don’t have a clear answer, ask your customers- they love to be involved!
- Order in small batches, or to order, if your business model allows. Customers are often happy to wait longer for a product if it is personalised, or if they know they are helping a business to be more sustainable by reducing waste.
- Packaging, including inserts and extras- always have enough so that your customer experience is not interrupted. You always want feedback that mentions the overall experience of shopping with you, and how that differs from your competition.
Stock planning and management is essential, what ever the size of your business, and not just during peak trading periods. Get it right, and you will increase profits, have less wastage and delight customers If you want help on this key area of your business, get in touch and I’ll share my expertise with you.