Most of your suppliers have large numbers of items on catalogue. I would say a typical small client of ours would be selling actively over a year selling over 43,000 lines. That is a lot of work if you order once a week to handle it. Just do a calculation on how much it costs you now to order stock?
Those that do not computerise it, tend to do much of the ordering on gut feel and memory.
However, getting it right is critical to retail business success as what we need to do is get the shopper what they want and when they want it. This is particularly difficult if you deal with products with high decay, eg popular magazines, fresh food, etc. because then we have the problem of availability vs waste.
This is why if possible here we recommend that you consider as the computer can relatively quite cheaply do the ordering that you consider smaller orders and buy frequently. This has the added advantage of keeping your stocks levels tight and your cash requirements down.
This is something where, if you are not already doing it where our software can save you much time and money and in the process, optimise your stock levels. What our software does is looking at your sales history discovers learning algorithms which automates replenishment. Technically its a form of demand processing.
What it does is looking at your history of sales, create an ideal stock quantity that it thinks you require.
If you order frequently, the amount of stock you need until the next reorder is less. It then compares this figure to what the actual stock on hand figure you have, it then adds some safety stock, then takes into account the ordering requirement of each supplier and then prints or issues a stock order with almost no work.
This reduces your holding costs, as you are not holding that much in stock.
- Lower ordering costs - as you are buying only what you need.
- Improved selling rates - as you are ordering only what you need.
- Decreased stock out occurrences - as the computer is checking continuously
- Overstock wastes - this is often caused by people overestimating what they require.
- Improved stock accuracy - you have a continuous check on your stock.
- Higher customer satisfaction - you have the stock you require.
You will save a lot of time and almost certainly your shop will do a better job of it.