Inventory costs can be managed and reduced using the best inventory software. Not all inventory and POS software include all the needed features.
A good inventory management software should enable you to reduce your inventory costs, while keeping your inventory count high!
Why do companies do it?
Reducing inventory costs is mostly based on reducing carrying costs. The carrying costs occur when your predicted sales are not in line with the reality and there are too many products left on the shelves in your store. There are simply too much costs related to inventory from costs of capital, to expired costs and handling, storage and counting inventory damage costs. Also costs for rent and electricity must be included as well.
The Well-Known Notion
The notion that in order to keep your inventory costs low, you need to keep your inventory count low as well is a well-known notion. It seems quite logical, but in reality, with use of a POS software and smart, feature-rich inventory management software you can manage to do it.
How lower Inventory and inventory costs
The first and most useful tip is to make an efficient plan. Then a strategic plan to move your slow mowing inventory is a must. Using the best inventory software can be of great help in achieving this.
Another way to lower costs is to not liquidate all of the items or to plan the liquidation better.
Liquidation is not always the best option as it can decrease revenues significantly.
Of course the most effective way in reducing inventory costs is establishing and effect inventory systems like just in time inventory. But this is not possible for all businesses. The businesses that can assure quick orders from their vendors, can significantly reduce inventory costs and keep the inventory count high.
Another interesting option is used by several popular entrepreneurs. Their companies is keeping the inventory count high and if they have many leftovers they don’t do liquidations, but instead donate the products to different charities. They later use that for creating good PR and public image, and are also doing a good deed.
Using POS software you can easily track and manage your inventory. So, at last, you can always have high inventory count when you expect huge number of sales, when you achieve a slower period, you can easily manage the inventory with your inventory management software and reduce costs.
No matter the POS software you are using, having all possible features for inventory management can be of great help. Simply, you need to find out what works best for your business. Whether it is a JIT system, or managing your inventory in various ways during different periods of the year. One thing is certain, reducing the inventory costs while keeping your inventory count high will increase your profits, because your costs will be lower and your sales will be higher.