The summer season is in full swing and that means retail stores will soon experience their peak periods of customer traffic and sales. However, it also means the possibility of facing inventory nightmares like running out of popular items or being left with excess stock of others after the rush concludes. 

Proper inventory management is crucial for retail businesses to navigate their busy timeframe smoothly. In this blog post, we will outline eight key tips that retailers can implement to maximize how they manage stock levels during their peak season.

Forecast Demand Accurately

One of the most important things is forecasting customer demand accurately. Use the best small business POS - that way you can look at sales data from the previous year's busy seasons. Take note of what items sold best each week and in what quantities. Compare it to other data like weather or current event details. This will help you better predict what products will be in high demand. You can then order enough stock without over-ordering. Having too much unused inventory sitting takes up space and costs money to store.

Check Inventory Levels Regularly

Closely monitor inventory levels on a weekly basis minimum as you get closer to your peak shopping period. This allows you to see what product inventory is decreasing fastest. You can then prioritize reordering those items first. Many retailers do full inventory counts every month. During the busy season, doing it more often like weekly will help you stay on top of restocking needs in real-time. This ensures customers can still find popular items on shelves.

Consider Vendor Minimums

When placing reorders with vendors or suppliers, check what minimum order quantities are required. Some will have costs or order thresholds. You will want to factor this in when forecasting demand. It may be worthwhile ordering slightly more than the minimum to reduce per-item shipping expenses. Just be careful not to over-order too far beyond expected sales. Having unused inventory after the season can be costly to store until next year.

Cross-Train Employees on Tasks

Cross-training employees on various inventory maintenance tasks will allow your team to work more efficiently. For example, employees should be trained to check stock levels, do cycle counts, take deliveries, and put away shipments. This way, if one person is busy, others will know how to fill in and help out without extensive training each time. It will help your team keep inventory well-managed while staying on top of other job duties during the hectic busy season.

Set Clear Reorder Points

Set specific reorder point levels for all inventory items based on their history. This will automate reordering once stock falls below that determined level. This reduces the risk of running out. Manually checking inventory levels regularly and reordering pre-emptively when approaching the reorder point. Clear guidelines on when to reorder make the process quick and simple for all employees involved in inventory.

Organize Storage Areas Nicely

Take time before the season to fully organize inventory storage areas like stock rooms, warehouses, pallets, shelves, bins, etc. This makes items easier to find when putting away deliveries or locating items for cycle counts. Good organization flow will have coworkers moving through storage spaces more efficiently. This minimizes the time spent searching and reduces the risk of misplaced products. Clearly labeling storage locations assists with keeping everything in order during business.

Boost Communications

Boost communications between the inventory team and other departments that will be affected. For example, if sales associates are notified about what products are on preorder or expected delivery dates. This prevents improper product information from being given to customers. Encourage the ordering department to update colleagues on shipment delays or substitutions being made. Open communications help everyone work as an informed and cohesive team during hectic inventory periods.

Provide Easy Access to Reports

Develop easy-access inventory reports your team can regularly review on devices anywhere in the store. Examples could be current inventory levels by item, items below the reorder point, out-of-stock products, incoming orders, etc. Allow employees to pull tailored reports as needed throughout the day. This equips colleagues with real-time inventory insights no matter their role or location in the store. Quick solutions can then be found to potential stock-out issues before they impact customers.

Leverage Technology Systems

Utilize online inventory management systems and technology tools to streamline processes. Systems that integrate with your point-of-sale can automatically generate replenishment orders and track usage trends. Being able to pull reports on one platform prevents data from getting siloed. Consider investing in RFID tags, barcode scanners, and storage racks with sensors to count stock levels with ease. New technologies cut down time spent on manual tasks so you can stay focused on customers during peak times.

Use Temporarily Storage Spaces Strategically

Have plans to utilize pop-up storage areas like trailers or seasonal stockrooms if needed during the peak timeframe. This can help if your main storage space becomes disorganized or tight on space due to larger than expected inventory volumes. Temporary overflow rooms prevent important items from getting lost, while still keeping the main areas neat and flowing well. Just be sure all staff know where pop-up locations are kept for retrieval needs.

Following these best practices sets the foundation for smooth operations even when customer traffic and demand are high. If your company is looking for simple yet powerful technology to maximize how you monitor and maintain inventory this season, consider signing up FREE for Hana Retail as your grocery store POS system.