Merchandise planning and allocation for holiday season sale to achieve high profitability. Read the Blog.
Every business begins with a plan which, if not executed properly, impacts growth and expansion. Inventory management is a critical part of retail businesses and many businesses use Excel as their initial inventory management tool as it is user-friendly and readily available on all computers. Nearly 46% of Small and Medium businesses don’t track their inventory at all, or use a manual inventory management tool like Excel.
MS Excel is an inexpensive software easily available and widely known to everyone, making excel sheets the preferred choice for inventory management. Small businesses manage their inventory, accounts, tracking, orders, etc., as it offers access to all the data on a single spreadsheet and the ability to visualize data using pivot tables.
Drawbacks of using excel sheets for inventory management
Once businesses expand, retailers learn that Excel has its own limitations. Tracking stock becomes complicated with the expansion of the product lines to meet the growing customer demands.
Some challenges of managing inventory on spreadsheets are:
Benefits of moving to smarter, new-age solution
Moving away from outdated systems is critical now. While it may seem like a significant investment for new businesses, using an automated solution can simplify processes and build efficiencies in management that can lead to huge cost savings in the future. Other benefits include:
Easy accessibility – Multiple employees from across business locations and company hierarchy can easily access data at any time. These individuals can also make changes and update the system simultaneously. A new-age merchandising solution automatically creates dashboards for all stakeholders to give a complete overview of the business at the store, warehouse, or company level.
Data storage – There has always been a limit to the amount of data that can be stored on Excel sheets. Excess data on a single sheet can prove to be difficult to manage. A single glitch could mean that data gets lost or corrupted. Smart Merchandising solutions work on a Cloud-based system, offering unmatched data storage capabilities with options such as automatic backup and retrieval to ensure that the data stays safe and secure.
Assortment planning and buying – Creating an optimal inventory mix are possible with smart merchandising solutions as it helps in granular data analysis, analyzing up to 17 levels of product attributes. It helps in catering to the true customer demand and reduces the possibility of deadstock or stockouts.
Better stock management – Evaluating the performance of products, merchandise planning software can determine which products are best sellers and which need to be discounted to avoid deadstock. It can also suggest styles that are out-performers in stores so they can be redistributed, through inter-store transfer, for higher sales and better margins. Low-performing styles can be discounted appropriately to sell at a decent price without incurring losses.
Automation capabilities – New-age merchandising solution reduces manual efforts in stock counting, recording product details, updating inventory records, etc. It helps automate decision-making for pre-season and in-season planning, buying, and allocation of the right quantity of stock to the right location for maximizing sales and boosting business growth.
Auto replenishment – NOOS and outperformers can be identified and reordered on time to avoid stockouts, especially during peak season sales. They can also be promoted to increase sales and guarantee a steady cash flow, all year long.
Business Insights and Reporting – Creating periodic reports and evaluating strategic performances becomes simpler with a Smart Merchandising Solution. It can churn out customized reports to match the preferences of stakeholders at different levels of the company. All of this can be achieved in a few quick clicks without formulas or pivot tables.
Increff Smart Merchandising solution offers all this and much more. It is an easily deployable solution and can be implemented without disrupting ongoing operations. It is a cost-effective automated solution to boost sales and build efficiencies in merchandising.
17 November, 2021
Merchandise planning is an intensive process that gets more complicated around the holiday and discount…
9 November, 20213 weeks ago