Ever wonder why some retailers succeed while others struggle?
Proper stock management.
This industry has evolved significantly over the years, and outdated inventory tracking processes are no longer sufficient.
Let’s break down the facts:
According to recent studies, retailers worldwide lose approximately $1 trillion annually due to out-of-stock merchandise. Yes, you read that right. $1 trillion.
It doesn’t stop there…
Imagine this:
ou’re visiting a store searching for a product. It’s not there. What do you do?
You leave and shop elsewhere.
Here’s what you’ll learn
- Inventory Mishaps Are Ruining Profit Margins
- Emerging Tech Transforming Inventory Management
- 5 Strategies Modern Retailers Are Implementing Today
- How To Choose The Best Solution For Your Business
If you run an ecommerce or brick-and-mortar store without efficient inventory tracking, you’re only kidding yourself.
Eventually, things will fall apart.
Statistics show that a whopping 58% of retail brands operate with less than 80% inventory accuracy. If the system you’re relying on to run your business is inaccurate more than half the time, then you have bigger problems than not knowing which solutions to choose.
This is why retail inventory management software is crucial to your business.
Let that sink in.
Expired products occupying shelf space while popular items fly off the shelf during peak seasons. Cash trapped in useless inventory that could’ve been used to purchase bestsellers.
If you haven’t invested in modern retail inventory software, now is the time.
Top-notch software allows you to keep track of every item stored in your stock room. Advanced programs can even automate your restocking process by utilizing demand forecasting capabilities.
Inventory Mishaps Are Ruining Profit Margins
Operating an ecommerce store or brick-and-mortar location without any type of inventory management is like flying blindfolded.
Sure, you might land safely a few times, but eventually you’re going to crash and burn.
Here are a few stats that illustrate how brutal it can be when you don’t use inventory software to streamline your operations:
- Retailers lose $1 trillion each year due to out-of-stock items.
- 66% of shoppers will go to a competitor once they visit a store/search an ecommerce store and cannot find what they’re looking for.
- 40% of shoppers say that out-of-stock and misinformation are the primary reasons for their frustration when shopping.
When was the last time you heard about a retail store thriving because they don’t track their inventory properly?
Without software to keep track of stock levels, you leave your business open to decreased productivity.
And when productivity decreases, expenses increase.
Emerging Tech Transforming Inventory Management
The ecommerce/in-store shopping experience has evolved over the years.
Customers now want products at their fingertips 24/7. Whether they’re on the go using your mobile app or sitting at home browsing your ecommerce store.
If you can’t fulfill that need, they’ll find someone who can.
Here’s the problem:
Making sure your products are available whenever and wherever your customers want them requires you to have access to accurate inventory counts, know where every item is stored, and have enough foresight to understand when it’s time to restock. Manual inventory methods like spreadsheets and pen & paper will no longer cut it.
Inventory management systems tie all of your sales channels into one neat package. When a product is sold on Amazon, that’s deducted from your store’s inventory. When that item’s stock level is low, purchase orders are sent to your supplier without you even lifting a finger.
The software does the work for you, allowing you to focus on what’s important…
Delivering outstanding service to your customers.
Inventory management is no longer a “nice-to-have” for retailers.
Any ecommerce store or brick-and-mortar that takes advantage of automated software and integrated technologies sees significant improvements to their business. Companies that have implemented automated inventory management systems experience 30% less stockouts.
Stop losing sales and frustrating your customers over preventable inventory mishaps.
5 Strategies Modern Retailers Are Implementing Today
You’re ready to clean up your act. Here’s what to do.
Real-Time Inventory
Gone are the days of calling your stock room to ask if there are any Product XYZ left.
Available in-stock means available in-stock. No more selling things that aren’t actually available.
Real-time inventory allows you and your employees to access the same information at the same time. No more mistakes.
Demand Forecasting
Why keep worrying about what sold yesterday?
Modern inventory management systems can anticipate which items will sell in the future by utilizing demand forecasting technology. That means you’ll know when it’s time to stock up for the next busy season and when it’s best to downgrade your inventory numbers.
Less overstocking. Less frustrated customers due to inventory shortages. Increased cash flow.
Multi-Location Stock Tracking
Trying to keep track of inventory at two or more locations manually is a nightmare.
Different stores will have different stock levels depending on the traffic each location receives.
Integrated inventory software will track all of your locations from one dashboard. Stock can be seen at each location and moved if necessary.
Say goodbye to balancing two separate inventory tracking systems that never seem to match.
Auto-Replenishment
Who has time to constantly check stock levels and place orders?
Auto-replenishment software will set minimum thresholds for each individual product. When that set number decreases, POs are automatically submitted.
No more forgetfulness when it comes to ordering new stock. Automatic software has got you covered.
Supplier Integrations
The best inventory management software allows you to integrate your suppliers into the platform.
When it’s time to place an order, all the information is sent directly to them. Packages can be tracked in real-time and updates are received as soon as that truck pulls into your receiving area.
Not only will this save you time, but it’ll also reduce your supply lead times.
How To Choose The Best Solution For Your Business
Just like any software or services, not every retail inventory management software will work for every business.
It’s important to find a solution that will cater to your specific needs.
Here are some things to keep in mind when searching for that “perfect” software:
- Size of your business. Small businesses don’t need as many fancy features as that of an enterprise scale business would.
- Are you selling online, in-store or both? Each sales channel requires different capabilities.
- Does this software blend well with your current point-of-sale, accounting software and ecommerce store?
- Can this software scale as your business grows? Will you be required to change systems in the near future?
- Don’t be afraid to spend money. However, you also don’t want to overspend. Make sure to factor in costs associated with implementation and employee training.
Do your research. Ask to see product demos. Talk to other retailers who use the software you’re interested in.
You wouldn’t buy a car without test driving it first, would you?
Wrapping Up
If you want your ecommerce store or brick-and-mortar location to be successful, retail inventory management software is no longer an option.
Retailers need to have:
- Real-time inventory visibility across all sales channels
- Accurate demand forecasting to know when to buy more of certain items
- Automations in place to complete time-consuming tasks
- Integrations that connect every aspect of their business
The technology to prevent stockouts, reduce excess inventory, and open up your cash flow has never been more accessible.
The question is, will you implement these new features before your competition does?
Running an inefficient shop is only going to bleed you dry.
Follow these steps and start streamlining your operations today.