Evaluate your Business’s Inventory Planning: Here’s a 10-Point Checklist

Running a retail business is never easy. It demands your time, effort, skills, and everything you can offer to improve your store. 

Particularly in your inventory, which is the biggest expense every retail store has, establishing the correct level of inventory, on a department by department basis, and a location by location basis, is the most important job in retail. 

To see if your business is on track with excellent inventory management, here’s a 10-point checklist that can use: 

☑ Maintains a low number of overstocks

☑ Keeps a low number of stockouts

☑ Easily determine unsold items for a discount 

☑ Regulates almost perishable products

☑ Smoothly acquire products from the stockroom

☑ Controls inventory abuse and stealing

☑ Prevents over-stocking and over-purchasing of materials for production

☑ Has high business cash flow and profitability based on the inventory flow

☑ Ensures a continuous supply of production materials 

☑ Boosts customer satisfaction levels

If you attain a score lower than eight, you definitely need to raise your game, especially in this competitive retailing market. 

One of the most effective ways to deal with this is by outsourcing an inventory planner. 

With Retail Smart Guys, your current inventory will be analyzed and, if necessary, be reclassified according to your business needs. 

Then, a comprehensive monthly open-to-buy plan for each class (by location for multi-store retailers) is provided. Having a detailed purchasing budget for the next inventory order keeps the cost of keeping materials low and secures adequate stock for production and sales.

With this kind of system in place, RSG helps to reduce your markdowns and increase your profitability. Proper inventory levels in all classes, at all locations, are ensured.