Oct 26, 2018

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Retail Inventory Management Overview

Retail Inventory Management Overview

One of the most important aspects of managing a retail business is a solid working knowledge of how inventories fluctuate. Some items sell larger volume in a seasonal pattern, while others are in demand year round. In fact, seasonal demand is a very important factor in micro management of inventory because overall sales tend to shift in seasonal patterns as well. Retail inventory management professionals know demand is the key to understanding the shift in sales percentage, and forecasting that product outflow can be a real challenge. While sales goals are the primary focus for retail managers, an effective forecast is equally important because it can explain variations in sales receipts.

Evaluate Your Product Line

Effective retail inventory management involves specific evaluation of the business product line. One of the most important factors in evaluation is how long a product sits on the shelf before being sold. Retail sales outlets that offer many products can be difficult assessments when it comes to certain products regarding holding time and upcoming seasonal forecasts, and having a dependable software service that provides accurate inventory level information can be a real advantage in determining how to market slow moving products for maximum impact on ROI.

Inventory Classification

Most inventories tend to fall into two specific categories, with those being perishable and non-perishable. Perishable products are typically best offered using JIT, or “just-in-time” inventories that limits the inventory level according to the sales forecast and shelf life. Non-perishable items will last as long as needed before a sale, but sales trends can matter. This means that product inventories may accumulate over time, with newer shipments being purchased at higher expense. An efficient inventory software product can provide retail managers the item specifics needed to make decisions regarding pricing and inventory movement, such as establishing sales marketing initiatives.

The inventory professionals at Demand Solutions understand these challenges for retail outlets across the globe. The company offers a wide array of software products designed to help all retail managers evaluate their product line and make sound marketing decisions through effective numbers application.

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