How many customers have you sent back because the product they came for was out-of-stock?
Let me tell you this, losing customers is more than losing sales. Unavailability of your products results in lost sales, lost reputation, lost customers. Out-of-stocks are a critical problem for everyone, especially retailers. If you’re into business for some time now, you’ll know that under-stocking leads to serious business issues.
Here’s why you should re-order items before it gets out-of-stock.
- Customers immediately look elsewhere if you don’t have them.
- You’ll lose your reputation.
- 90% of dissatisfied customers never return.
- Customers may choose to switch brands.
In short, you’ll soon run out of business. That’s why detecting the correct re-order level is extremely crucial. On the other hand, if you overstock items, chances of them turning into dead stocks are high. Not just that, it would incur extra costs, space rent, etc which affects the financial health of your small business.
Inventory management is all about the balance between over-stocking and under-stocking. This is why inventory management must be done right!
Dealing with out-of-stocks with Effective Inventory Management
To minimize the loss and to maximize profit in business, you should know how much of what items are required for the upcoming days and invest in inventory accordingly. However, maintaining the balance between overstocking and understocking can be quite a challenge to do manually.
- You may have to count stocks manually after every few sales to find out if the “re-order point” has been reached. That’s quite a lot of work, isn’t it?
- The demand for some items does not remain the same throughout the year. The item that was fast-selling the last month may stop-selling this month for some reason. To predict demand, you may have to look at the sale-history of every item in your small business. This again is time-consuming and a lot of work.
- The supply of some best-selling items may cease temporarily because of supply chain issues. You may have to store in some extra stock in prior to being covered during the non-supply days. But, the question is, how do you identify such profit-bearing items? Doing it manually requires you to search through all your account books, calculate profits on each item which is again a tiring job!
This is why you need to automate this process with inventory management software. With software as simple and reliable as Vyapar App, you can ensure that you never run out of stock.
Vyapar App lets you define your own reorder levels. When your stocks reach the marked minimum level, the software alerts you about it.
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Not just that, a good inventory management software like Vyapar App-
- Helps you make a timely purchase of items by providing you all the relevant details required for the placement of a Purchase Order.
- Helps you to estimate the correct size of your inventory based on sale-history.
- Helps you gain a better understanding of how much you need to stock with stock summary reports.
- Monitors your sales trends and gives you a report on best-selling and slow-selling items. This helps you re-stock items accordingly.
- Reports and historical sales data provided by the software allow you to order just enough stock. You won’t be overstocking or understocking your store.
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This way you don’t order too much stock and you don’t risk being too low on inventory. As a retailer, this removes the burden of daily inventory management and product reordering and means that you can focus your efforts on growing your business.
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