The efficient management of a retail company depends especially on the perfect functioning of all the processes that have a direct effect on the product. The product is what incites the customer to choose the shop and get in contact, and is therefore the centre of any business. Obviously, companies that want to work on the outside have to be well-organised on the inside.
This organisation includes various steps in terms of stock management, from the choice and ordering of the merchandise to the sale of said merchandise. Each of these stages depends greatly on the shopping habits of the target group, which is something that is constantly changing and is affected by various external factors, such as new trends or the changing of the seasons. This is why optimum stock management requires business owners to be well-informed of any change that may take place and constantly adjust their stock planning accordingly.
The art of optimum stock management
The management of a retail business involves many areas in which a business owner must be present on a daily basis. At Retail360, we take care of this important and complex task so that you can devote all the time you need to your daily tasks, while we guarantee the perfect functioning of the stock of your retail business.
Stock management is a complex part of Retail Management and its planning is based on various pieces of data and information. How many items am I selling? How much do I need to order and how often? How much can I save if I reduce my stock to the necessary amount?
Many of the decisions that are made along the path a product takes to reach the hands of a satisfied customer are based on the answers to these questions. Amongst others, these affect:
- Direct decisions with the most appropriate supplier and collaboration with this company
- Choice of orders
- Management of stock storage and security
Retail360 supports you in your decision-making in all these areas
Choice of supplier
The path towards this satisfaction starts with the choice of the supplier, trade marketing and mutually-satisfactory relationships, which depends on various conditions: Apart from ensuring you have the latest products that meet your customers’ needs, this decision also requires clarity in terms of the financial aspects. These depend greatly on the location of the supplier and the means used to transport the stock, which can make a big difference, not only in terms of the conditions like the speed and security of shipments, but also in terms of monetary factors.
Planning of orders
Once you have chosen the supplier that best meets all your retail company’s requirements and signed the corresponding contracts, you need to plan your orders. These require a good understanding of your customers and their tastes, given that a shop must have the products most in demand with its customers. In order to gather this information, we carry out analyses using Retail Intelligence tools to assess the KPIS (Key Performance Indicators). These allow us to understand customers’ shopping habits, record their actions in the shop and use this information to deduce shopping trends which will shape our orders.
This communication with the supplier is also important in the decision regarding storage space, which is particularly relevant in large cities where every square metre can be a determining factor. Correct storage of products guarantees high stock profitability in economising on supply costs in relation to unnecessary orders of stock or the costs of superfluous storage area. And in addition to the aspect of reasonable use in shops, for the good reputation of the retail company it’s important to have items in stock at the busiest shopping times.
That’s why we determine the ideal level of stock based on the calculation of possible scenarios and which guarantees stock security for your retail business so your customers are satisfied.
This is how we go about the whole stock process, from the choice of the supplier to purchase by the customer, so your products can reach them without problems and with stock management that achieves the maximum levels of customer satisfaction and profitability of the business.