According to Footwear News, it’s important to have increased visibility into inventories not only in the back room and warehouse, but also at the front of the store, as retail managers can better track demand of certain styles and order appropriately. It’s critical that inventory managers have a pulse on what’s selling and what needs more attention, as it can ultimately help a company’s bottom line. If your business also has an online component, be sure to track what styles are selling fast online versus in the store and see if there are any patterns or discrepancies.
You also need to make sure you’re ordering the right amount. According to Success, retailers could be tempted to order in bulk, because they’ll reduce the amount of cost per item from the distributor, but that could leave you susceptible to having a sunk cost of inventory you can’t sell. That’s why tracking demand for items is so important.
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