No matter what type of retail company you have, there are some common issues that can really impact your profitability—and you might not even realize it. Here is a look at three important issues you should stay on top of to keep your business running smoothly.
Proper inventory management is essential to keeping your business profitable. Many companies keep their inventory in multiple warehouses, and to top it off, some even use disparate systems for tracking everything and different channels for selling items. Although you may think this is working for you if you’ve always done it this way, the truth is that you’re missing out on some terrific opportunities for growth. As more and more retailers realize the value of multichannel processes, the offerings when it comes to inventory systems are rising to meet these challenges. A good central online solution integrating your shipping, warehouses, sales channels and accounting can make a huge difference to your operations.
While data on sales and inventory isn’t the easiest thing in the world to collect and keep track of, it’s an effort that could pay off handsomely when it comes to your bottom line. A central inventory solution that tracks your inventory alongside your sales data and order status information can give you tremendous visibility into all aspects of your business, thereby enabling you to make smarter decisions.
When your business is trying to scale up, using stock-keeping units (SKUs) can save a lot of headache. While many retailers choose to stick with the barcodes produced by their manufacturers, this can backfire, as these barcodes often change, which leaves them with mismatched information and a lot more work. Instead of setting up your team to face the arduous task of re-configuring product identification codes, put your own system in place that is independent of external parties. Go with a convention that is easily decoded internally to maintain consistency across your sales channels and warehouses.
By keeping an eye out for these common pain points, you can help your business remain competitive for years to come.
This blog post was based off of an article from Entrepreneur. Read the full article here.