The Importance of Inventory Management for Retail Businesses

Inventory Management is an important thing to be considered in the business world, especially retail business. Even how professional a retail business can be seen from the stock management system or merchandise inventory. Just imagine, if the customer does not get the required items for reasons of out of stock and this happens repeatedly. Of course will have an impact on the decline of the image of the store.

In addition, the lack of arrangements in Inventory Management can also be one of the causes of reduced profits and loss of customers. That is why Inventory Management should be taken seriously in retail businesses (grocery stores, supermarkets, minimarkets and supermarkets). Merchandise inventory includes all stocks (stock in hand), both stock items contained on store shelves and stock items in warehouses. So the merchandise inventory represents the total number of good items being on display as well as those that are still stored. Although it looks simple, but controlling Inventory Management is not easy. If the inventory of goods is too much, of course the funds spent are also large, the increment of some costs (store operating costs, storage costs, etc.) including increased risk of damage to goods. Conversely, if the inventory of goods is too little, then the risk of shortage of inventory is also greater. Moreover, some goods can not be brought in suddenly. So this results in delays in profits.

Reasons for Importance of Inventory Control in Retail Businesses

Retail business is one business that has a pretty good prospect. If initially the retail business is run traditionally without the support of modern technology, now management began to evolve with the development of technology and focus on the comfort and desire to meet customer needs. No wonder if Inventory Management or Inventory Management is an important thing that must be considered in retail business.

Here are some reasons for the importance of inventory control:

Guarantee the smooth flow of goods and maintain the stability of the company. With well controlled goods inventory, it will not disrupt the smooth operation of the company so that the company can still meet market needs.

Providing the best service to customers by ensuring the availability of their required goods. In this case the customers will feel valued so they are loyal to the company

Suppressing procurement of goods that may not be suitable to market needs. So there is no excessive accumulation of goods that turn out to be less desirable customers.

Minimize the risk of delay in the arrival of goods required by the company, because of the inventory of goods in the warehouse that can be used for operational first.

While some things that must be considered in Inventory Management, among others:

1. Order arrival time of goods

Note the time of arrival of goods ordered back within a certain period. This is related to the inventory of goods in the warehouse, so it needs to be adjusted so that the goods remain until the next order arrives.

2. The amount of goods stored

Quantity of goods ordered should be tailored to the needs. If too much, of course there is waste, but if too little will result in a stock void that impacts less good on service to consumers.

3. Number of safety stock

Safety stock is inventory just in case if something happens that hampers the delivery of goods next, so the inventory remains there for some time to come.

That is the reason for the importance of Inventory Management for retail businesses. May be useful for you retail business owners.

For more information on how Soltius can help your Retail business, contact us via email:
sales@soltius.co.id / 021-29345925