Retail stores would not exist without inventory – customers need something to put in their carts!
Maintaining a precise and accurate level of inventory is paramount to running a successful and efficient business. Inventory issues affect more than just your bottom line; it can cause a negative customer experience and even disrupt manufacturing and other operations.
Retail stores have to purchase the items that they sell. Money spent on these items is not made back until that item sells, at a higher price of course, and revenue is generated. The longer an item is on the shelf, the longer it takes to make back the money it cost to acquire that item.
It is crucial to have a steady stream of inventory coming in and purchases being made to ensure an even and positive cash flow for your business. The less cash you have entwined in operations means more working capital that you can use to bring in more of the popular, better selling items.
As a business owner, you understand the importance of keeping customers happy. If the people coming to make purchases at your store can’t find what they are looking for, you can expect their overall satisfaction and experience to be quite negative.
On top of a poor customer experience, having to turn away customers because you don’t have adequate costs you money. These people have intent to buy but are unable to because the items they desire are not on the shelf.
A properly managed inventory is always stocked on the items that people want, eliminating the threat of a stockout and unhappy customers.
On the other end of the spectrum, having too much inventory can also hurt your business. The longer a product stays put in inventory the less likely it will ever sell at all.
Items that sit in inventory for too long with eventually need to be written off to make room for products that will actually sell, resulting in a loss for your business. For grocery store owners that handle perishable items, overstocks are especially dangerous.
Make sure your shelves and back stocks are appropriately managed so that overstocks never happen in the first place.
If your store is in need of brand new, top-notch shopping carts and baskets, contact Good L. Corporation today!