Having a firm grip on inventory and sales trends helps you manage your supply chain better. Stronger retail inventory management could reduce shrinkage by at least half. This data suggests that most losses stem from incorrectly recording inventory on intake, miscounting it or misplacing it. A National Retail Federation survey puts average shrinkage for its members at 1.4% of sales in 2019. According to a survey by the FMI food industry association, the average supermarket loses up to 3% of sales through shrinkage. Shrinkage is inventory loss due to shoplifting, product damage, vendor mistakes or fraud, employee theft and administrative errors. Shipping, receiving and order fulfillment run more smoothly, and you minimize errors, customer complaints and staff stress. Strong inventory management also reduces friction in your systems as sales grow. Simplifies Processes and Facilitates Growth: Having accurate inventory data across selling channels lets you use your inventory more efficiently, ultimately getting the product to consumers faster.
![supermarket management 2 matching the meat supermarket management 2 matching the meat](https://www.aseanretailshow.com/wp-content/uploads/2021/11/Grab-supermarket-ภาพปก.jpg)
If you are selling via physical stores, your website and third-party merchants, it can be difficult to keep correct inventory counts across all channels. Improves Multi-Channel and Omnichannel Performance and Order Fulfillment: Or when a piece of consumer technology adds a popular new feature, the old models may face plummeting demand: Consider how the rise of smart televisions sunk demand for models that weren’t capable of streaming content. For example, season collections or holiday-specific packaging. This phenomenon can apply to perishables that have a limited shelf life, such as milk and meat, or a non-perishable that becomes obsolete because consumer tastes and technology change. Inventory management helps retailers address another costly inefficiency that happens when products expire or become obsolete. With lower inventory costs and enough supply to fill every order, retailers improve profitability. Also, with real-time information on sales and stock, retailers can react quickly by reordering, transferring stock from another location or drop shipping to the customer. This amount will be larger for bestsellers than for unpopular products. Retailers can use inventory management tools to determine how much stock is “just right” to have on hand, neither too much nor too little. To avoid disappointing customers and missing sales, retailers want to avoid running out of inventory. Other savings include shipping, logistics, depreciation and the opportunity cost that comes from not having an alternative product that might sell better.
![supermarket management 2 matching the meat supermarket management 2 matching the meat](https://pbs.twimg.com/media/E5wqn6GWQAEPGWe.jpg)
When you know how much stock you have and how much you need, you can pinpoint inventory levels more accurately, thereby reducing storage and carrying costs for excess merchandise. They are more likely to have enough inventory to capture every possible sale while avoiding overstock and minimizing expenses.įrom a strategic point of view, retail inventory management increases efficiency. Inventory management is vital for retailers because the practice helps them increase profits. What Is the Importance of Inventory Management in Retail? How many products to reorder and how often.Ideal amount of inventory to have in back stock and storage.Profit margin by style, model, product line or item.
![supermarket management 2 matching the meat supermarket management 2 matching the meat](https://img5748.weyesimg.com/uploads/fmetadata.com/images/15889892601265.jpg)
![supermarket management 2 matching the meat supermarket management 2 matching the meat](https://i1.rgstatic.net/publication/235318536_The_evolution_of_partnerships_in_the_meat_supply_chain_Insights_from_the_British_beef_industry/links/53e4b8700cf2fb748710dced/largepreview.png)