If you ask a retailer what the most challenging part of managing their business is—9 times out of 10 they will probably say inventory management. This is because inventory management encompasses many things that affect many different parts of the retailer’s business–from warehouse management and on-shelf availability to loss prevention and inventory counts. It only gets more complicated as a retailer adds more product SKUs to keep track of, or the retailer adds locations. Managing inventory must be at the top of every retailer’s list of management priorities because it directly affects the retailer’s bottom line. Inventory shortages result in lost sales and lower customer loyalty, while too much inventory results in a higher increase in ‘Cost to Serve’. This is why every retailer needs an ‘Inventory Plan’.
A key element to the ‘Inventory Plan’ is having a point of sale system that takes into account all the aspects of inventory management—meaning not just what is on store shelves but also provides warehouse management capabilities so retailers can manage the stock behind the scenes. Also it is important for retailers with multiple locations to be able to track inventory in real-time across all store locations. The best way to do this is by using a cloud POS system.
Posterita, a cloud point-of-sale system, provides the ideal inventory management system for many different types of retailers because the system is built to be flexible. Below are a few key inventory management features that Posterita provides that enables accurate inventory management.
- Proper item classification and definition: Much like building a solid structure, good inventory management starts from a solid foundation. To start your foundation you need a POS that enables easy but proper item classification and definition to ensure all your product are going into the system correctly. Posterita allows retailers to define any item based on its attributes—size, color, model and so on. This not only provides greater flexibility on how you sell and manage your items but you can also analyze item performance based on any attribute through Posterita’ robust reporting capabilities.
- Real-time inventory tracking: A major part of being able to meet the demands of your customers is having real-time visibility of your inventory across all your locations. Posterita operates in the cloud providing the ability to have current information of inventory levels of all items across all your stores. This means you know exactly how much of everything you have so you don’t run out of stock and are able to anticipate your customer’s needs.
- Easy inventory transfer between stores: The ability to track inventory transfers between stores is made easy with Posterita because you no longer need to fill out paperwork. All you do is click the “Send Items” icon and it transfers the items to the other store’s inventory. You can also request items in the system. Both stores receive a notification of requests and when the items arrive at the store, the staff just needs to confirm what they receive.
- Inventory tracking: Posterita stores all information in its database, making inventory tracking through reports easy. You can pinpoint inventory levels and movement from any time and date.
With more demanding customers and rising costs, it is more important now than ever before that retailers harness technology as a key part of managing their store operations, including inventory. A POS system that enables real-time inventory management across multiple locations is a strong step in bringing your retail operation into the digital business era.