What is Inventory Control and Why is it Important?

What is Inventory Control and Why is it Important?

Inventory control helps retailers determine what products are selling well versus the ones that are not. Having stock control helps retailers make the most profit with their inventory. This gives retailers an indication on how much more or less stock they need. This, in turn, helps reduce operational and storage expenses.

This is especially important for brick-and-mortar retailers because controlling the amount of stock they have on hand is directly related to customer satisfaction and how much profit they make on their inventory. Understanding how to manage this is vital to a retailer’s success since inventory is the largest resource and use of cashflow for every merchant.

TAKU Retail client, Kam Wai Dim Sum, raves about TAKU’s reporting functions. Thanks to TAKU, they are now able to use their POS system to track their daily sales and know which are their best performing items. Read more here.

Maintaining a minimum stock level means stores have to keep a minimum number of products in stock to make sure they are always able to replenish their shelves easily. This is especially so with retailers during busy and uncertain seasons: this could mean extended delivery delays or stockouts. Instead of guessing or approximating, retailers need to calculate the ratio of delivery times to stock levels so that they are optimizing their inventory and lowering their operational costs.

Keeping tabs of stock levels and maintaining a healthy and lean stock level means that retailers are able allocate resources to new products to satisfy new customer wants and needs. Having a higher turnover is a positive sign for retailers because it means that they are able to sell more and make more sales.

Tips for Better Retail Inventory Control:

  • Using real-time retail POS software that tracks inventory movement across all channels based on actual stock levels
  • Using a barcode scanner to accurately track products as they are sold or received
  • Running inventory counts to make sure that stock levels in the POS match the quantities actually on the shelves
  • Tracking the sale of inventory items to know which products are bestsellers and which items don’t need to be re-stocked

By always having some stock on hand and determining your ideal reorder days, retailers do not ever have to worry about running out of certain items and long lead times. Knowing what stores have in-stock may seem straightforward with a single store location. But it is a lot more difficult for multi-location retailers to track inventory across different locations and manage returns and exchanges easily. This is especially true as retailers today often sell the products both in-store and online. TAKU Retail’s inventory management capabilities mean that retailers are able to automatically see real-time inventory levels at all times, regardless of how many locations or online sales channels they are selling in.

Learn more about TAKU Retail’s inventory management capabilities.

Small Business Week Feature

Small Business Week Feature

In recent years there has been a steady increase in the number of small businesses. According to Statistics Canada, over 41% of GDP in recent years has been generated from small businesses. Ontario alone has over 400,000 independent businesses. For Small Business Week, we wanted to shine a spotlight on small businesses we have worked with and share their stories with you.

Ruffin’s Pet Centre (Tillsonburg)

Ruffin's Pet Centre (Tillsonburg)

Ruffin’s Pet Centre (Tillsonburg) is the largest pet store in Tillsonburg and sells a variety of pet products such as pet food, aquariums, and pet toys. They are known for their excellent customer service and attention to detail. Google reviews of Ruffin’s Pet Centres also show that they are always willing to go the extra mile for their customers.

When the COVID-19 pandemic started, Ruffin’s needed to find a way to quickly showcase their products online for store pickup. Because pet food is so bulky, traditional e-commerce solutions that focused on ship-out were not suitable. To stay profitable, Ruffin’s Tillsonburg started selling their products online with TAKU but only for local store pickup. By using TAKU eCommerce, Ruffin’s Tillsonburg is now able to offer pickup at the store within 30-minutes and direct shopping right from Facebook Shop and Instagram Shop.

Read more here

Kam Wai Dim Sum

kam wai dim sum

Kam Wai Dim Sum is a Vancouver-based dim sum wholesaler, in-house deli, and retailer. Though they work with T&T Supermarket to bring the joys of authentic dim sum beyond just their community, they also treasure the connections they have forged with their local community. They are proud to keep their dim sum affordable for locals as well so that people always have access to quality dim sum.

Read more here

Hutchings Farm

Hutchings Farm

Hutchings Farm is a local, family-run farm based in Pefferlaw. They harvest garlic, eggs, vegetables, and so much more. They are a hub for local farm goods and are known for their friendly service and fresh products. Since moving online with TAKU eCommerce, they have been able to offer a 24/7 catalog to their customers and to organize easy pickup options for their customers.

Read more here

Want to read more about how we’ve helped local businesses?