Running a retail business means being on top of a lot of details at all times. Implementing systems that make managing those details easier is essential and inventory management is your best opportunity to control costs. Every year, retail businesses in the U.S. lose an estimated $42 billion in lost inventory. Most of that comes from simple administrative errors and employee theft, and about 25 percent is the result of shoplifting. What that tells us is that business owners have an opportunity to lessen the impact of losses. We’ve put together a few tips that are easy to implement.
Utilize your POS features
A point of sale system that has effective inventory management apps is a great place to start. Lightspeed, is a great example of a POS system that will centralize all your purchasing, which means less risk of making a mistake. From the moment you submit an order to the moment it is sold in your store you’ll have an accurate picture of inventory to cross check against manual counts you make in the store.
Show employees that they’re accountable
Having a system in place that can give you detailed, up-to-the-minute inventory reports shows employees that you have oversight for every shift. This goes a long way in deterring employee theft in the first place. When employee theft happens, as it inevitably will, a POS system can help you determine the source. By looking at patterns related to shift days and times or seeing that a particular cash register is off more than the others will lead you to the culprit.
Administrative errors account for a big chunk of losses. Creating one purchase order that includes multiple vendors keeps things much simpler and automating those orders when inventory gets low ensures that repeat orders are accurate. This also minimizes the time that inventory sits on the shelf since your POS automatically alerts you at the perfect time to restock. If you are currently doing your purchasing manually you should see a boost in accuracy immediately, which can save you hours of tracking down losses.
The team at SilverEdge can help you understand how to use apps that will make your inventory management as seamless as possible. Contact a SilverEdge representative for an appointment. We’ll help you maximize the capability of your POS system so you can focus on growing your business. We are ready to help make your business richer!