Right now is a perfect time of year to take a look at all of the resources you have in your toolbox. As you prepare for the next “busy season,” you’re presumably analyzing all aspects of your business, and one that is imperative to your success is having a solid inventory management system. [gap height=”15″]
One basic yet vital aspect of any inventory system is tracking the quantity on hand, and having the right quantity on hand is paramount, especially at a time of year when you will likely see first-time customers. Just think how unfortunate it would be if you have a customer ready to purchase a bottle of lotion to quickly realize that you’ve got none on the shelf, and that you don’t have any in stock at your other location, either. You never want to turn a customer away because you don’t have sufficient quantity on hand. If you have the right products in stock, and the right quantity, you’ll keep customers coming back time after time. [gap height=”15″]
So, as you plan for the upcoming busy season that will quickly be upon us, how do you know what to order? A key function of any salon software program is to track product sales. As the saying goes, “knowledge is power.” Analyzing your product sales during last year’s busy season will allow you to forecast which products to stock, from which supplier, and most importantly – the quantities.
And how do you ensure that you are keeping ample quantity on hand of all the products that you offer throughout the season? Establishing reorder points and quantities, based on analysis of your prior sales, will do just that. Having a system that will alert you once you’ve reached your reorder point, and readily display the quantity that you should reorder once you’re ready to create a purchase order should be part of your inventory management strategy. [gap height=”15″]
Once you know how to prevent shortages, it is equally important to minimize overages in stock, as they can be costly. When you overstock your items, they take up valuable real-estate in your salon, and if they don’t move off the shelves, you risk having to discount them substantially or even worse, write the quantity off altogether.[gap height=”15″]
As accurate inventory tracking is crucial, you may consider evaluating your current procedures in addition to your software controls. It is a best practice to do physical inventory counts on a regular basis. Having the ability to produce a physical stock count form via your software system that includes product numbers and names, along with a space to insert the quantity held, will be helpful in identifying any variances. If you enlist the help of your staff in conducting stock counts, you can compare the quantity held that they’ve submitted for each product type to that of your master inventory report. You can do a physical inventory adjustment to ensure that the correct quantity is being displayed at the point of sale. [gap height=”15″]
Now is the opportune time! Take a hard look at your current resources and procedures, and refine your strategy to assure increased efficiencies as they relate to inventory management for the upcoming season.[gap height=”15″]
As you prepare for the next “busy season,” it’s time to analyze your inventory management system. [gap height=”15″]
