Part VIII — Can You Identify Trends?
Continuing with our 10-part series — 10 Ways Inventory Management Can Make or Break You — is Part VIII: Can You Identify Trends? Do you have a software that can track in detail the movement of your inventory from the time you order/input the information into purchase order, receive and record the item in inventory and price, and then sell the item? Detailed information such as that without doing any more work than the pushing/inputting a few buttons is invaluable so that you can always have your best products on hand.
Part VIII: Can You Identify Trends?
No matter what business you are in there will be some fluctuation in sales and, as a result the movement of items in your inventory. In some businesses these changes can be fast and furious, and in some it may be a slow process that takes place over years. Regardless, how do you identify trends and differentiate them from long term changes in sale patterns?
In some situations a failure to effectively track trends can end up in overstocking items that never move or require heavy discounting. In another scenario you may lose business to competitors or spend exorbitant costs to get the items needed to meet demand. Any company that can spot these trends early can take advantage of them by providing what customers want and getting rid of items customers are losing interest in—all faster than your competitor. With the “big box” stores it is often critical that a smaller store do a better job managing customer tastes and needs to stay competitive when pricing is not an option.
So how do you accomplish this? How do you identify sales trends in a timely and useful manner? A tightly-integrated software with purchase order, sales and inventory modules can track details about the movement of inventory from receiving to the sale in detail, without additional work, and produce a report that provides detailed information about movement of your inventory items over 12 months.
If you haven’t already ready Part I-VII and wish to, or you would just like to read this white paper in its entirety – 10 WAYS INVENTORY MANAGEMENT CAN MAKE OR BREAK YOU — click here.
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