In business, an inventory refers to the list of sold and remaining stocks. It reflects the current status of a business, how it is progressing towards its goal and what barriers need to be broken. Behind the success of a business is an excellent retail inventory management. Led by a good manager, an inventory must reveal a balance in the stock levels. Meaning, the stock must neither be insufficient to force customers to look for other providers nor too much to pull down stock-sales ratio.
A retail inventory manager needs to know which goods are and are not selling. He must be able to identify wasted inventory and the influencing factors. Accurately tracking sales minimizes unnecessary funding and frantic cutbacks. To materialize such a goal, the inventory manager implements systems in arranging goods, monitoring distributions and comparisons with daily accounting. There are four specific areas that a manager must keep an eye on to obtain a desirable inventory. This dictates the fate of a business after a certain period.
Database. Any business company should keep a record of their sold products. The arrangement of products in the store must be carefully patterned with the virtual presentation used in point of sales terminals. Meaning, a product sold to a client must automatically be removed from the system and translate to a sale. The finalized transaction must tally with the remaining products in the store. This will tell what products need to be supplied to sustain the business flow and keep stock in.
Inspection. The results of the computerized accounting results must tally with what the business actually has at the end of day. Therefore, no matter how reliable the inventory or accounting software is, a physical inspection is still needed to be able to compare results. Untallied results indicate actual loss or accounting errors. With a good retail inventory management, results are often parallel or if not, only few correctable mistakes are identified.
Sales analysis. It is the job or an inventory manager to identify fast and slow-selling products. In that way, he can know which stock need immediate rations and which need replacement. He can also suggest some improvements in marketing products that are slow-selling to balance the inventory results. Analyzing the inventory is crucial as it serves as the basis on how the products must be managed.
Rotation. Slow-selling products carry the risk of reaching their expiration dates. The retail inventory management team needs to come up with strategies to hasten the sale before they waste inventory just because of expiration. Placing older products in front of the new ones is one of the effective ways.