Inventory Management in Retail Industry - Need and Important Terminologies
What is Inventory Management?
Inventory refers to the goods stocked for future use. Every retail chain has its own warehouse to stock the merchandise to be used when the existing stock replenishes.
Inventory management refers to the storage of products to be used at the time of crisis.
The retailer keeps a track of the stocked goods and makes sure there is surplus inventory to avoid being out of stock. Such a process is called as inventory management.
Why Inventory Management?
Gone are the days when customers had limited options for shopping. In the current scenario, if a customer does not find the desired merchandise at one retail shop, he has a second brand to rely on. A retailer cant afford to loose even a single customer.
It is really important for the retailer to retain their existing customers as well as attract potential buyers. The retailer must ensure that every customer leaves his store with a smile. Unavailability of merchandise, empty shelves leave a negative impression on the customers and they are reluctant to visit the store in near future. Inventory management prevents such a situation.
One must understand that the products need some time to reach the store from the suppliers unit. The retailer must have sufficient stock to offer to the customers during the lead time.
Managing inventory also helps the retailer during situations beyond control like transport strikes, curfews etc. The retailer has ample stock as a result of judicious inventory management even at the time of crisis.
Important Terminologies used in Inventory management
Preventing loss of inventory
Employees working at the store might get tempted to steal the merchandise.
Let us go through some tips which help to prevent loss of inventory:
- Store manager - Roles & Responsibilities
- Mannequins - Purpose and its Importance
- What are Planograms ?
Authorship/Referencing - About the Author(s)
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