As a business, it’s important to ensure that you have plenty of inventory on hand to meet the needs of your customers. However, if you have more inventory that your customers will want to purchase over the next hour, day or week, it could go to waste. Let’s take a look at some different strategies that you can use to determine how much of a given item you should have available at any given time.

What Are Your Busiest Sales Periods?

Ideally, you’ll record your sales figures for each hour of the day on a piece of paper or an electronic spreadsheet. You should also record sales figures for the day, week and quarter on a separate piece of paper or a spreadsheet. This will help you determine when your customers are most likely to buy whatever it is your establishment offers for sale.

Generally speaking, your inventory needs will be higher at times when demand is at its peak. It may also be a good idea to keep track of how many units you sell at any point during the day, week or quarter. This will help you determine exactly how much of a specific item that you’ll need to have available to meet consumer demand.

Take Note of Any Unusual Events That Might Impact Sales Figures

It’s not uncommon for fewer people to venture out to the store during periods of inclement weather. Therefore, if sales are lower on a given day because of a blizzard, hurricane or other natural disaster, be sure to note that somewhere. It’s also important to note if sales were higher than normal the day before a natural disaster when people were stocking up in preparation for the event.

Are You Selling Perishable Goods?

If you are selling perishable goods such as vegetables, dairy products or meat, it’s even more important to keep available inventory at proper levels. Ideally, you won’t order anything that you don’t expect to sell within the next week. If you do have excess product remaining that is about to expire, it may be necessary to sell it at an extreme discount.

You Should Always Know How Much Inventory You Have

Whether an item is being shipped to your store, is in your warehouse or has been sold to a customer, you should always know where it is. Keeping track of your current inventory levels may be easier with the use of RFID inventory management tools. These tools can tell you exactly how many televisions are available for sale or how many boxes of bananas are being sent to your location within the next 24 hours.

Having access to this information can be crucial if you experience a sudden increase in demand or simply want to know if you can get through the day without making an emergency supply run. Although this should be basic knowledge for any business owner, it’s important not to add inventory just because you think that you won’t have enough to meet customer demand. Otherwise, you’ll have a storage room full of goods that you can’t sell and money tied up in assets that are essentially worthless to the company.

RFID Technology Can Reduce the Risk of Theft

There is a good chance that your loss prevention team is going to want to install RFID tags on items that are considered a high risk to be stolen. These items may include computers, video games or other devices that are easy to conceal before they are taken out of the store. If an item containing such a tag is removed without authorization, an alarm will go off to alert you to the attempted burglary.

What Will You Do If an Order Is Delayed or Cut for Any Reason?

Despite your best efforts, there is a chance that an order won’t arrive on time or won’t contain all of the supplies that you ordered. This means that you might not have enough product on hand to meet customer demand, and that could be a problem if other retail locations in your immediate area have the capacity to do so in your place.

If you have a good relationship with your suppliers, it may be possible to have a customer’s order shipped right to his or her home. In the event that a customer wants to buy an item that is rarely available, you could offer to hold it for that person for a certain amount of time. This may be enough to ensure that this individual doesn’t go to a competitor for something that might be hard to sell to another customer in a timely manner.

It’s critical that you remain cognizant of how much product your store has for sale at any given time. This is also important if you sell goods through an online marketplace instead of a physical location. When implemented properly, an inventory management system can help to reduce costs, improve profit margins and provide customers with a convenient shopping experience.