Retail Inventory Management Tips to Get The Most Out of Your Warehouse
The wrong retail inventory management strategy increases carrying costs and makes it impossible to stay competitive. Common obstacles encountered when it comes to effective inventory management include having poor visibility into fast-moving versus slow-moving product, extensive travel times between bin locations, and lost revenue due to poor labor productivity. However, warehouse managers can overcome these obstacles by considering the main issues affecting omnichannel retail supply chains and implementing these key tips to break down barriers to efficiency.
The Problem: Omnichannel Retail Carries an Extreme Level of Interdependence Between Systems and Processes
As explained by Entrepreneurer.com, the fastest-moving products account for only 20% of inventory. In addition, consumers’ preferences are in a constant state of flux, and Amazon offers everything from A to Z, literally. Figuring out how to combine all existing channels into an omnichannel supply chain is a nightmare, requiring advanced systems, integration, and unyielding accuracy. Meanwhile, reslotting of the warehouse and changes to the inventory management program will recur, so retail warehouse managers must have a few tricks up their sleeves to stay competitive and keep costs under control.
The Solution: Follow Key Retail Inventory Management Tips to Enhance Productivity
Some of the best tips to enhancing retail , reports Justine Cross of TechnologyAdvice, include the following:
- Invest in technology, such as wearables, a newer warehouse management system, and devices connected to the Internet of Things, like robotics.
- Automate order entry, using EDI and API to bring systems together.
- Upgrade your warehouse management system to a cloud-based platform, enabling broad scalability.
- Count all physical inventory, using technology where possible.
- Track everything, including labor productivity.
- Proactively manage returns by reducing their rate through a more adequate order rate.
- Improve information access, sharing information to improve labor productivity.
- Train employees on proper inventory management tactics.
- Integrate sales channels into a true omnichannel supply chain.
The Reward: How to Put Tips Into Action
- Develop a business case for investing in inventory management technology.
- Customize your inventory management strategy.
- Keep customers informed and engaged.
- Look for ways to improve labor performance in terms of managing inventory.
- Consider working with a third party to implement new systems, procedures, and training programs.
Support Your Warehouse Team With the Top Retail Inventory Management Tips Today
As William Johnson of Small Business Trends explains, ongoing process improvement and stock optimization ensure efficient inventory control. Instead of trying to micromanage inventory control and hope for the best, warehouse managers should use these tips to streamline operations and enhance visibility in the warehouse. An optimized inventory is the end result, producing a better flow and more efficient means of managing inventory. Of course, outsourcing some of the process, especially when implementing new systems or technology can help. Learn more about how your organization can improve inventory management techniques, strategies, and processes by visiting Veridian online or by clicking the ‘Schedule Consultation’ button below.