Asset management in retail is all about ensuring that the business has the right products in the right quantities at the right time.
This process entails knowing when items will arrive from suppliers and how many items you have in store. This then helps you decide when and what products to order. Moreover, retail business owners need to track products while keeping their pricing strategy in mind.
Proper retail asset management ensures that business owners don’t suffer from a shortage or surplus of products, as both come at a cost. Poor inventory management once caused retailers to lose 300 Billion Dollars of revenue. This is why retail stores, especially the brick and mortar types, need asset management.
To facilitate effective asset management in your retail business, pen and paper or even spreadsheet asset management just won’t cut it. To succeed in retail, you need to invest in an asset tracking solution. Here are five advantages retailers can get from effective asset management.
1. Keep Track of all Product Information
As a retailer, when you’re going through your inventory, you want to find a specific product quickly. Smart asset and inventory management can help you create unique product IDs and descriptions along with different types of product information.
Retailers can easily search for specific products and distinguish one item from another, especially if they’re visually similar. Scanners will read and display multiple product identifiers like location, supplier name, and more.
Having an Asset tracking system as a retailer allows you to track all product information and keep them in one receptacle. This then keeps you organized and helps you maintain coordinated product histories.
2. Categorize and Classify Products in Inventory
Inventory control requires managing products that you already have in stock. Classifying these products is crucial for retailers because it helps them identify their most popular, and therefore, most important products.
Knowing which products are the most bought allows retailers to devote their time and resources to these products, rather than wasting them on managing the less important ones. Based on the Pareto or 80/20 principle, this type of classification affirms that 20% of the products account for 80% of the retailer’s total revenue.
Smart inventory management automates the analysis for you, giving you more time to focus your attention on more critical business operations. The Smart asset vending system considers various factors such as storage value and sales frequency to categorize and classify products.
3. Help Monitor and Comprehend Inventory Metrics
Tracking inventory by hand and computing their metrics with a calculator or a spreadsheet is a recipe for disaster. With smart asset management that actively tracks metrics, retailers are assured that their inventory processes are running smoothly and efficiently. If they’re not, the system itself identifies which areas to improve.
Equipped with accurate product metrics, the system can help retailers set minimum and maximum product quantity levels because it does all the legwork to maintain these levels accurately.
Your retail inventory system can send out automatic alerts, which can be customized based on the minimum and maximum product quantity levels. With this, retailers can avoid having capital tied up in excess stock, and most importantly, avoid disappointing customers when stocks are unavailable.
4. Enable Forecast and Meet Consumer Demand
Forecasting demand is a crucial aspect of inventory management because it helps retailers future-proof their business. Without it, retailers are prone to ordering a random number of new stocks. In the end, they will find themselves facing product surpluses, or worse, shortages that could disappoint their customers, forcing them to take their business elsewhere.
A smart asset management system gives retailers access to data and sales history insights. All of which helps them predict how much they’re going to need at any given time, so they’ll only have to reorder stock when they need to do so. Best of all, the up to date, sales figures help them determine which of their products sell better than the rest.
5. Provide a Benchmark for Good Customer Experience
As a retailer, one of the worst things that can happen to you is when your customers receive damaged items because of product and shipping errors. Smart enterprise asset management reduces that risk by letting retailers know which Stock Keeping Units (SKUs) are currently in their inventory.
On top of that, asset tagging and tracking keep you informed of an item’s current location and how many are available. Armed with this knowledge, retail business owners can track down and mark damaged or substandard goods that, God forbid, will end up on the unknowing customer’s hands.
Do away with paper methods or spreadsheets to manage your retail inventory. In many ways, an asset management system for retail can boost your inventory management practices and your business as well, placing you far ahead of your competitors.
You’ll be able to run an efficient inventory control while improving stock management. Above all, you can save money in many areas like reduced costs on inventory storage or reduced risks of carrying dead stock.In the end, retail, in its essence, is all about having the right stock on hand at the right time, and that’s what retail inventory management like Teqtivity can give you in more ways than one.