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Inventory & Dollar Store Articles
Inventory Rules to Follow for Dollar Stores
Rule #1: Always Maintain Enough Inventory
The reason that it is important to maintain enough inventory to cover your demands is because consumers cannot purchase what you do not have. They would have to, and probably will, look for it esewhere.
When maintaining proper inventory levels, one of the important things to take into account is lead time. This is the amount of time that it takes from when you order the merchandise, until you actually receive the merchandise. The said time frame varies from industry to industry and from vendor to vendor. You need to be ordering with enough time to guarantee that you will receive the merchandise when you need it.
One of the best ways to be safe is to calculate a reorder point . Ordering extra merchandise will reduce the probability of experiencing under stock, bu ordering too much wikll hold you overstocked, whic is not good either. For this reason, a margin needs to be developed based on a percentage of anticipated inventory needs while holding prior sales statistics in mind. Once you calculate this margin, you would set the Minimum Quantity of that particulart product, and have a Point of Sale System remind you to reorder when the items reached that point.
Rule #2: Avoid Overstock
Having enough inventories to satisfy demand is one thing, but having too much inventory is a problem within itself. This even more important when dealing with a seasonal item such as Christmas merchandise or Consumer trends, no one wants to purchase merchandise after a season is over, at least not for a reasonable price. Besides this fact, excess inventory is costing money. It is occupying space, which is prime real estate in the retail industry.
Rule #3: Prioritize your Dreams
The 80/20 rule states that abouth 20% of the products you sell will provide about 80% of your profits. These products consist of regularly selling items. Your customers return to purchase this merchandise repeatedly. Hence the significance of identifying which products these are and analyzing all aspects of these products to further aide in your knowledge of what needs to be stocked and what doesn't. You need to know that these products have to have a higher reorder point.
Rule #4: Invest in Information and Information Gathering Techniques
The importance of Point of Sale Systemns is sometimes greatly understated. Some retial owners believe that it is overkill, yet this simple tool can mean the difference between a productive store, and a store close to reaching a critical point . These systems can provide several key elements such as:
• Calculating when and what items to reorder
• Analysing inventory levels
• Analyzing sales (much larder and important than it might sound)
• Analyzing customer trends
• Controlling employee consistency and honesty
• Providing critical statistics for decision-making
These systems are a tru investment that allows owners to know what their business worth actually is. It allows you to experiment with merchandise and merchandise placemtn and can track the success or failure of those experiments.