Ever had the experience of running out of money during mid-shopping? The situation seems alarming, doesn’t it? If you’re running a business, the same situation could turn out to have rough and costly consequences. This happens when you have a discrepancy in your real inventory counts versus what you assumed you had.
It’s all about precision
Managing inventory is essential as it plays an important role in supply chain management, but it’s one of the most difficult parts. That’s why retail businesses should always track inventory records at the SKU level.
Even if you are pretty good with inventory accuracy, there are key things you should consider to keep it that way. Below we’ve mentioned why inventory accuracy is important
What is inventory accuracy?
Inventory accuracy refers to any inconsistencies that are between the actual quantity and any type of physical inventory versus what is recorded or supposed to be. Usually, it is the difference between what you have in your inventory right now for sale to what you have in your management system.
Why is inventory accuracy important?
No one wants to have an inaccurate inventory as it is obviously problematic, and it can result in inaccurate customer orders that might create a shortage in your production line, damage, loss for your business, or even have a hard time selling your stock before it becomes outdated.
And that’s not all; the implications on the accounting side can cause more issues for a business. For example, incorrect inventory can lead to inventory shrinkage when your stocks are less than the recorded in your accounting record, and it can also throw off your inventory valuation at the accounting phase or at the end of the financial year.
Inventory write-offs are when you reduce or remove the value of inventory or old stock that has no value from your accounting records. It can be also be used to rectify inaccurate inventory.
Why is inventory difficult to manage?
Achieving inventory accuracy is a difficult task, but it can be made easier with the latest technology, processes, and expertise. Most e-commerce stores tend to be as cost-effective and independent as much possible and usually self-store, self-fulfill their products from their residential space. This can lead to inventory accuracy problems when it’s not being managed or stored in a warehouse.
As the business grows, it’ll expand the production line and inventory storage. Without the right equipment and expertise, things will only get more difficult.
How can POS Highway help you?
POS highway offers the tailored services that will help you keep track of everything. The highlight of our services are:
Real-time Inventory Management
Drill deeper into your inventory to meet customer demand by season, size, color, category, and much more. With Counterpoint, you know exactly where your stock lies at any point in time – giving your sales associates more power to up-sell, cross-sell and increase customer value.
Powerful replenishment and restocking functions allow you to quickly transfer products from your warehouse to different locations based on your business needs and customer demand.
Meet customer demand and avoid being over-stocked with unified purchasing. Intelligently predict where stock needs replenishing and create new purchase orders automatically to manage a comprehensive omnichannel experience.
Advanced Pricing and Promotion
For retailers operating across multiple stores and several channels, Counterpoint can manage multiple pricing strategies like promotional prices, contract prices, BOGO Price, and multiple price levels by store.