First of all, you must keep in mind that to achieve inventory control. You must obtain reliable data about entries, departures, returns, exchanges and losses of the products that you sell. This activity can be done in a comfortable, agile and dependable way if you have a POS System with this scope. Additionally, we recommend you:
- Calculate the demand for your inventory
Inventory demand is the one that tells you the number of products that you sell in a given time and helps you estimate the number of products that you need to sell.
To calculate the demand of your products you can observe the daily average sales sold by each reference and multiply it by the number of days. If your POS System has the scope to generate reports, a detailed sales report by-product will provide you with this information.
- Forecast inventory days
Inventory days are the days that tell you how many days the inventory you have in stock lasts. It will allow you always to have your business stocked with the products that you sell. To calculate it, you have must have the data of actual inventory and divide it by average daily sales. It will tell you how long the products will last and help you forecast your purchases and orders.
- Calculate your inventory turnover
It indicates how quickly you sell products in your business by calculating average annual sales per product and assigning a turnover ratio. If you are clear about this, then you will know which products have decreased their turnover. You will be able to make adjustments before you stock up on merchandise again.
Here the data you may have about rotation plays a fundamental role because if you have a product whose turnover has decreased. You must sell it urgently .you can establish promotions with the help of your software to rotate those products.
- Calculates inventory losses
In your business, you should be clear about the number of products that are lost, so that you keep your inventory under control. There is a chance that all stocks will not be available for sale. Damage, maturities, theft, and defective items will damage your inventory.
To minimize these losses, you should have the software that has traceability in the processes and able to keep control in the system of revenue vs output. This data should be compared with the actual inventory and make the appropriate corrections.
Once you manage the entire inventory, you will see how other processes in your business show an increase in their effectiveness. Perfect Orders improve cash flow and gross profit margin for each product by having a more accurate inventory.