Inventory Management: Complete guide for Fashion and Clothing retailers:
Posted by markwahlbarg on August 21st, 2019
Inventory Management System has become a critical success factor in today's retail including the fashion and clothing industry.
All businesses want to sell something to the customer that comes through the door and for this, it is necessary to have what they are looking for.
The merchandise stock of a business is immobilized money. The more inventories a business has, the less cash flow there is for other things.
The strategies for the optimization of the inventory management for fashion suppose a balance between having the merchandise necessary to increase sales and not spend to reduce costs. That is to have enough product to meet customer demand and sell all the product that you have bought, only then can we increase revenues and margins.
Inventory management for clothing is directly related to money, you paid money for the merchandise and you will recover it when you sell it. Let us learn more about inventory management.
What is inventory management?
Inventory management for appliances is the management and control of stock, a very important asset in the business.
The fundamental objective of inventory management is to keep the quantity of a product in stock balanced, without having too much, or too little.
Therefore, inventory management consists in having the right inventory, in the right quantity, in the right place, at the right time and the right cost.
An important part of inventory management involves replenishing stocks at the right time while maintaining an appropriate stock rotation.
Managing inventory and product rotation is key to the profitability of any retail business.
Why inventory management is important?
The inventory management for clothing retail business involves a large amount of cash, so managing it efficiently is crucial to growing your business and a great way to save money.
Good inventory management saves you money in many ways:
If you sell perishable products, such as food or cosmetics, there is a real possibility of being ruined if you do not sell it on time.
Therefore, solid assortment of management will help you avoid unnecessary waste.
Avoid dead stock:
Dead stocks are products that can no longer be sold, but not necessarily because they are expired but may be out of season, obsolete or outdated.
Savings in storage costs:
Storage often involves a variable cost which means that it fluctuates according to the amount of product stored and for how long. The longer an item remains on a shelf without being sold, the more it costs the business.Also See: Inventory Management, Stock Rotation, Retail Business, Replenishing Stocks, Management, Inventory, Right
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