What is inventory management?
Your golf shop is where golf meets retail. Golf shop inventory qatar cell phone number includes apparel, equipment, accessories and more, including branded golf clothing, clubs, bags and shoes. Essentially, it’s all the items you stock and sell in your store.
Inventory management refers to the process by which you order, store, and use the products on your shelves. How often should you order a particular item? How quickly can you sell each item? How should you organize your inventory in your store? These are all important considerations for a store manager.
What’s the first step in inventory management? First, you need to know your inventory and how it’s selling. Having accurate sales records is essential to guide your decision-making. In the golf industry, apparel and equipment often sell on a seasonal basis (you might sell few sweaters in the middle of summer, but they’ll start flying off the shelves in the cooler months). You need to know when to restock certain items, how to price them, and when to simply pull them off the shelves.
Understanding ABC Inventory
Once you understand the basics of inventory management, put a system in place to make sense of your inventory.
Apply the ABC method to inventory management to streamline your operations and maintain positive cash flow. The method is inspired by the famous 80/20 rule in economics, which states that 80% of your results come from 20% of your causes (products). In retail terms, this means that less than a quarter of your inventory accounts for almost all of your sales. Is this the case for you? If so, you need to identify what constitutes that 20%.
With the 80/20 rule in mind, review your golf shop’s sales data so we can identify your most valuable assets. We’ll divide your items into three categories based on the profit margins they generate:
Type A Inventory: Your most important inventory. It rarely, if ever, runs out because it sells well and is constantly replenished.
Type B Inventory: These items sell regularly, but cost a little more to keep.
Type C inventory: This is the one that generates the least sales, generates the least revenue, and has too high an inventory cost.
By classifying your products into these categories, you now have a better understanding of which ones you should prioritize and which ones you should cut. You are on your way to becoming a more efficient inventory manager!
Better manage your inventory
With this new knowledge in mind, here are some best practices for effective inventory control.
Slow moving inventory
Also known as slow-moving inventory, this is the product that hasn’t sold and has become obsolete or outdated. Unsold merchandise takes up space and costs your business money—and it’s just plain frustrating. You may not be able to get rid of your dead inventory overnight, but you can learn from past mistakes. Review your sales history to spot items that keep showing up in this dead zone—and stop ordering! Get creative with getting rid of your slow-moving items: Have a clearance sale or donate them to charity.
Inventory forecasting
Much like managing a round of golf, inventory forecasting can improve your bottom line. Starting now, inventory managers need to calculate how much product they’ll need to stock in order to fulfill their upcoming orders. When creating forecasts, it’s important to consult with other departments, as they’ll have input into future trends. It’s also important to be proactive and constantly analyze your sales and performance throughout the year, taking notes that you can refer to next year. One of the biggest aids to forecasting is a solid inventory management software, just like the one Lightspeed users rely on every day.