To maintain proper inventory levels, you need to either choose the right inventory software program or outsource your inventory management. Various point-of-sale software programs can help you figure out what the hot-selling items are and what’s just dead wood taking up space on the shelves. In choosing POS software, check to make sure it tracks seasonal products and special orders and that it can manage returns when items are restocked.
If you choose to outsource your inventory management, understand that it takes time to train outside help and to analyze the data you need to make knowledgeable inventory decisions. Outsourcing can save you time and money, but gains in these areas may not be immediately recognized. Ultimately, it’s your job as the retailer to track ongoing sales of each item, to find the profit margins and to know how much of an item remains in stock.
For more on managing your inventory, be sure to read Inventory Management for Good Cash Flow.