One of the most important aspects of a retail business is inventory management. However, keeping up with your inventory, especially if your business carries thousands of products, can be incredibly challenging. In a 2015 Cision study, it was revealed that US retail businesses have an inventory accuracy of only 63 percent. At this rate, businesses are prone to making mistakes when it comes to replenishing and restocking their inventory. A lot can happen in a retail store that could result in an inaccurate stock count. These include shoplifting, encoding errors, supply chain discrepancies, and more. With so many chances for inaccuracies, retail businesses need solid strategies to achieve inventory visibility in their physical stores.
If your small to medium-sized business has multiple locations and is implementing an omnichannel strategy, inventory visibility becomes a non-negotiable. This part of your business provides an accurate picture of what you have on hand, and it also offers insight into what items are in demand. As a result, you can make the right stock–related decisions for your retail store. For instance, with inventory visibility, you can track items in real-time throughout the supply chain, which can reduce the incidence of stockouts or overstocks.
Let’s delve into how your retail business can implement strategies to ensure your inventory is as accurate as possible.
- Invest in an Integrated POS System
To kickstart your campaign toward achieving real-time inventory visibility, invest in a seamlessly integrated point of sale (POS) system. The POS serves as the nerve center of your retail operations. It captures sales data and synchronizes it with your inventory management system in real time. This integration ensures that every transaction, whether it’s a sale or a return, is reflected accurately in your inventory levels.
At your cash register, make sure you have a digital payments and card terminal that not only accommodates modern cashless payments, such as cards, QR codes and digital wallets but also fully integrates with your electronic cash register (ECR). With this modern credit card terminal, cashiers won’t have to encode the information multiple times since the unit syncs with the cash register. This feature reduces the instances of human error, resulting in a more accurate sales record and inventory management.
- Utilize Barcodes and RFID Technology
Barcodes and radio-frequency identification (RFID) technology can take your inventory management to the next level. These technologies provide a granular level of visibility by assigning unique identifiers to each product. As items are bought or restocked, barcode scanning or RFID readers update your inventory levels in real time.
In retail, RFID tags attached to products enable efficient inventory management, which allows businesses to instantly locate, identify, and update the status of items. For example, RFID can streamline the restocking process, reduce human errors in manual tracking, and contribute to a more accurate and up-to-date inventory. This ultimately improves overall operational efficiency and customer satisfaction.
- Equip Staff with Wireless and Mobile Technologies
Arm your staff with wireless and mobile technologies to make real-time updates on the go. Mobile devices and handheld scanners connected to your inventory management system allow staff members to update inventory levels promptly, whether during restocking or while assisting customers with transactions.
This strategy not only ensures accuracy but also increases the efficiency of your workforce. Imagine your team seamlessly navigating the store, providing excellent customer service while simultaneously updating inventory data in real time. This item-level tagging has the potential to increase your inventory accuracy from 63 percent to 95 percent, according to the 2015 Cision study mentioned earlier.
Aside from wireless scanners for inventory tracking, investing in a wireless card swipe machine facilitates smooth and fast cashless transactions. With every successful transaction, your centralized inventory is immediately updated. This is critical for retail businesses implementing an omnichannel approach wherein customers can initiate and continue their shopping journey across multiple online and offline channels.
- Consider Cloud-Based Inventory Management Systems
Step into the future of inventory management with cloud-based systems. These systems offer real-time access to data from anywhere, breaking down the barriers of traditional in-house servers. With cloud-based solutions, you can monitor and manage your inventory levels even when you’re not physically present at the store.
Companies like TradeGecko and Zoho Inventory provide user-friendly cloud-based platforms that streamline the inventory management process. Indeed, the flexibility and accessibility offered by these systems are essential components of achieving real-time visibility in today’s fast-paced retail landscape.
- Train Your Staff
Investing in technology is crucial, but it’s equally important to invest in the people who will be using it. Properly trained staff members are essential for effective inventory management. That’s why you should ensure your team understands how to use the integrated POS system, barcode scanners, card machines, and other technologies effectively.
In the dynamic world of retail, staying ahead of the competition requires real-time inventory visibility. Through accurate inventory management, you can maintain the ideal stock levels that will give you an edge over your competitors. By Cassy Silvestre
