| Inventory Shrinkage is the difference between your | | | | breezeo Make sure your POS can print Receiving |
| inventory on hand and what it should be according to | | | | Reports that can be matched to packing slips. Making |
| sales records and purchase orders. This difference | | | | it easy for your Receiver to note short shipments or |
| can be substantial - between 2% to 5% annually, | | | | other discrepancies will ensure the accuracy of new |
| according to retail industry studies. A good Point of | | | | inventoryo Keep track of your back orders and |
| Sale (POS) solution can help cut this figure in half, by | | | | special orders. Your POS should be able to always |
| addressing two of the major contributors - internal | | | | keep you up-to-date on the status of backorders and |
| theft and "messed up paperwork". | | | | special orders - by supplier and by individual inventory |
| Earlier articles dealt with internal theft issues, and | | | | itemo Also keep track of RMA's. Make sure you're |
| offered suggestions on how to use both positive and | | | | getting proper credit from your suppliers - it can quickly |
| negative reinforcements (the "carrot and the stick" | | | | add up to be a substantial amounto Handle |
| approach) to change the underlying reasons why staff | | | | superseding parts properly. Inventory can be incorrectly |
| would take "five fingered discounts". This article will | | | | written off as obsolete unless your POS can easily |
| deal with how a good integrated POS system (like | | | | prompt you with correct information and alternativeso |
| Windward System Five, but there are certainly others | | | | Optimize your inventory value by keeping track of |
| that do as well, so do your homework) can help | | | | aged inventory and allowing for FIFO (first in, first out) |
| reduce Inventory Shrinkage through the elimination of | | | | when selling stocko Use alternate supplier tracking to |
| "messed up paperwork". | | | | ensure you get the best price for your orderso Take |
| But instead of just focusing on the tracking of | | | | advantage of "Pay Early" discounts by having your |
| inventory, I'd like to also talk about how a POS system | | | | POS prompt you with "pay by" dates and amounts to |
| can optimize your inventory - get the biggest retail | | | | be savedo Buy what you need, not what you think |
| bang for your inventory buck! | | | | you need. Let you POS prompt you on what to order |
| A fully integrated POS system (we like to call them | | | | based on past sales history, established "high-lows", |
| intelligent point of sale software solutions) can help you | | | | and seasonal adjustments, not on "gut-instinct" (but |
| reduce inventory shrinkage and optimize value:o | | | | make sure you can enter "gut-instinct" purchases if |
| Reconcile Billings to Purchase Orders quickly and | | | | you want)o Negotiate better discounts from suppliers |
| accurately, so you're not overpaying, or in some cases | | | | by also tracking sales volumes from your end, and not |
| even paying twice!o Use barcodes to eliminate | | | | just trusting their records |
| confusion. Stock that is properly barcoded and labeled | | | | Obviously, being able to put 2% of your annual |
| can't be "accidentally" sold as something else. Make | | | | inventory costs back in your pocket allows you to |
| sure your POS system can generate and print unique | | | | maximize your business investment and better grow |
| barcodes, or allow you to use manufacturers | | | | your company. It can even pay for your Point of Sale |
| barcodes, if you wisho Use data collectors to scan | | | | software system, allowing for even greater savings |
| inventory and keep counts accurate. New wireless | | | | from improved efficiencies and increase customer |
| models make frequent "mini-inventory counts" a | | | | satisfaction. |