Inventory management is one of the most important aspects of any retail business, especially during Q4 and the busy holiday season. It’s vital to manage your inventory properly to avoid potentially costly mistakes.
Here are five tips to help you prepare and organize your inventory:
Build a sales forecast based on last year’s data. A sales forecast is an estimate of how much merchandise you will sell during a specific period. Building a sales forecast is essential, as it allows you to accurately predict how many products you will need to keep in stock. Start by looking at your sales reports from last year. This will give you an idea of how much inventory you need to keep in stock compared to your sales volume.
Conduct market research to predict upcoming demand. Once you have prepared your sales forecast, conduct market research to predict upcoming demand. This will allow you to plan your inventory for the future and avoid mistakes. This market research will also help you predict which products will be most profitable to sell.
Audit your current inventory. You can now move on to your core inventory. Be mindful of your inventory — it can make or break your business this time of year. To stay on top of your stock, it’s essential to conduct an inventory audit.
Plan for extra storage. With your core inventory in place, think about how you will make room for extra stock you need to keep on hand to fulfill orders. It’s a good idea to plan for extra storage to keep your inventory flowing. This can be done in a few different ways, such as renting space in a warehouse or renting a portable storage unit.
Create a replenishment plan. A replenishment plan details how much inventory is needed, when it should be ordered and who will place the order. A good replenishment plan will help you avoid running out of stock and ensure that you are meeting your customers’ needs.
