02:31
Faizan
Proper storage and tracking of inventory are absolutely necessary if your store is going to be prepared to serve customer demand. Every item stocked on the shelves must have inventory in reserve to meet the public’s buying response to it. Neglecting inventory storage and management is an invitation to lost revenue. Follow some guidelines to keep store inventories at appropriate levels.
Find out first how much of which item needs to be kept in inventory. Keep a daily running tally of items sold. If tracking on paper, list items in columns across the inventory sheet. Count and record how many of each, in each department, sells each day. Total the daily sales for a week of sales and record this number. Repeat the process for four to six weeks.
Take the four- or six-week total by week. Look for any abnormalities through the cycle of weeks. Find any unusually high or low sales days or weeks. Try to identify a reason for the abnormality.
Use the previous cycle’s sales figures to order inventory. Compare current cycle figures to the most recent cycle figures. Add or subtract a percentage if you are at a seasonal change, or there are other factors which may directly impact sales of the item.
Calculate available storage space by calculating the space each stored item will consume. Know what will fit into the available storage area. Manage storage so that there is always at least 40 percent of storage space unused. A full storage capacity, just like an empty one, is a poorly managed storage system.
Store the inventory by sales volume. Select the most readily accessible location, closest to the floor and door, for the items which need to be replenished most often. Do not stack them high on out-of-reach shelves, or way in the back under items that rarely sell. Stack and label them for quick reference and quantity monitoring. Put them so you can retrieve them quickly as shelf quantities dwindle.
Calculate the cost to store inventory. For instance, if a store is debt-free, has substantial cash, and storage that's half to three-quarters full, inventory storage/management should be fairly low. (There is no need to overstock or under stock, if there is steady, reliable product turnaround.) Conversely, a company with heavy debt, low to no cash, and a full storage bins will carry a comparatively high storage bill.
Find out first how much of which item needs to be kept in inventory. Keep a daily running tally of items sold. If tracking on paper, list items in columns across the inventory sheet. Count and record how many of each, in each department, sells each day. Total the daily sales for a week of sales and record this number. Repeat the process for four to six weeks.
Take the four- or six-week total by week. Look for any abnormalities through the cycle of weeks. Find any unusually high or low sales days or weeks. Try to identify a reason for the abnormality.
Use the previous cycle’s sales figures to order inventory. Compare current cycle figures to the most recent cycle figures. Add or subtract a percentage if you are at a seasonal change, or there are other factors which may directly impact sales of the item.
Calculate available storage space by calculating the space each stored item will consume. Know what will fit into the available storage area. Manage storage so that there is always at least 40 percent of storage space unused. A full storage capacity, just like an empty one, is a poorly managed storage system.
Store the inventory by sales volume. Select the most readily accessible location, closest to the floor and door, for the items which need to be replenished most often. Do not stack them high on out-of-reach shelves, or way in the back under items that rarely sell. Stack and label them for quick reference and quantity monitoring. Put them so you can retrieve them quickly as shelf quantities dwindle.
Calculate the cost to store inventory. For instance, if a store is debt-free, has substantial cash, and storage that's half to three-quarters full, inventory storage/management should be fairly low. (There is no need to overstock or under stock, if there is steady, reliable product turnaround.) Conversely, a company with heavy debt, low to no cash, and a full storage bins will carry a comparatively high storage bill.
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