One of the major issues to retailing is pilferage and for entrepreneurs who cautiously started small but have gained momentum in their niche market, facing this problem becomes critical and urgent.
SMEs in the retail business have to deal with the problems of shoplifting, especially if one’s brick and mortar store carries small items displayed on shelves, as well as petty thievery by employees.
Even online shops run the risk of losses when handling assortment of stocks, such as home-based startups where the business owner employs a handful of staff to manage client orders and product shipments, as well as to procure new stocks and accept deliveries.
Some items tend to get lost in the comings and goings, which can be due to human error since small businesses likely do things manually and trust their spreadsheets to be precise. It doesn’t necessarily mean people are swiping items.
Security cameras can likely discourage and assuage pilferage, especially with real-time access to the videos online. But this takes some investment as equipment need to be installed. Real-time inventory, on the other hand, makes a better proposition to reduce losses in retail stores.
Getting more out of inventory
Inventory management can tell the business owner if stocks are missing, what these are and how much he’s losing. He will also be able to catch inaccuracies in tracking stocks, such as miscounts in receiving and dispatching inventory as well as errors in data entry.
The cost of an inventory software, even coupled with Point of Sales (POS), outweigh the benefits of keeping actual stocks intact and making sure one is well-stocked to meet the demand. After all, what is at stake here are the sales and revenues. Still, such solutions don’t charge an arm and a leg.
When inventory is integrated with the store’s POS, one will be able to track orders in real-time and enjoy stock visibility. Even returned items are noted and audit trails for daily reports can be generated to reconcile what’s in the cash registers. Get to closely manage stocks without hassle and get peace of mind that the business is not losing goods.
Stock-keeping: A balancing act
Yet a business can reap more benefits in inventory management, on top of accurate logistics and reduced losses. Having just the right amount of goods – not too much nor too little – will translate to revenues for the SME.
The key is to maintain optimal level of stocks. An overstock ties up the company’s capital and eats into profits because of warehousing fees, product depreciation and mark downs to sell off slow-moving items.
On the other hand, it is not good business to run out of items that customers need. A shortage of the company’s popular products irks consumers who can instantly spread the word about their dissatisfaction. It also frustrates employees as they become answerable to the customers.
Inventory calls for good planning and forecasting to strike a balance, which MYOB Accounting Software helps SMEs achieve. Accessible via smartphones and tablet PCs, including iPhone, iPad and Android, retailers of auto parts and accessories, consumer durables and furniture, electronics and computers, as well as apparel and sporting goods will find this handy.
MYOB has Inventory Control to manage multiple product data and specifications, stock status and physical counts, plus provide real-time information on total inventory across locations, among other functions. It can also integrate Warehouse Management and POS.
Inventory is an asset so safeguarding it is important, no matter what method or solution the company adopts.