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Mobile Point of Sale & Line Busting App
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Free Inventory Management App
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Order Management Solution
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Premium Suites Catering & Pre Order Management
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Workforce Empowerment App
Hospitality Point of Sale App
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Table Mangement for Restaurants via Mobile or Tablet
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Elevating Sports & Entertainment Transactions Effortlessly
Streamlining Retail Transactions for Seamless Shopping
Optimizing Transactions for Vibrant Festival Experiences
Transforming Hospitality & Suite Service Management
Smart Inventory Management with RFID
Building Relationships, Rewarding Loyal Customers
Insights-Driven Decisions for Business Growth
Premium seating areas in sports stadiums are becoming more popular than ever, changing how fans experience live events. These exclusive luxury options not only enhance comfort and enjoyment but also play a key role in shaping fan behavior and loyalty. With their elevated level of comfort, fans feel more engaged with the event, making it a standout experience compared to a typical game.
Here, we’ll take a closer look at various premium seating options available in stadiums. We will also discuss some key strategies for improving the experience for these fans. We’ll focus on the importance of innovation, personalization, and top-notch service in creating an indelible atmosphere that resonates with the transcendental sports culture.
The stadium fan experience includes every interaction a fan has with the venue during a sporting event. This premium suite wraps around all elements a fan engages with, beginning with the atmosphere, where the crowd’s energy, cheers, music, and even the aroma of food can transmute an average game into something extraordinary.
Comfortable seating is an absolute necessity. Recent surveys reveal that fans prioritize essential features such as extra legroom, padded seating, lumbar support, spatial arrangements, cushioning, and unobstructed views. There are also options for premium stadium seats equipped with adjustable recliners and charging stations.
For stadiums, hassle-free navigation is critically important and must be supported by easy access to food, beverages, merchandise, restrooms, concessions, and exits, along with expansive concourses and ramps. Improved convenience can mitigate disruptions during the events.
All of these amenities, combined with friendly interactions with staff members and fellow fans via fan zones, contests, digital engagements, and augmented reality experiences, contribute to a better stadium fan experience.
Here are some strategies that can be considered by stadiums to attract and retain fans at sporting events:
Stadiums that offer in-seat ordering have seen a significant increase in the average amount fans spend per order, often by 15-20%. This technology allows fans to conveniently order food, drinks, and merchandise without leaving their seats, which not only reduces wait times but also encourages impulse buys.
By integrating QR code ordering, fans can simply scan a code, view menu options, and place their orders directly from their mobile devices. This convenience enhances the fan experience and boosts revenue for venues by facilitating personalized add-ons and upsell options, which have been proven to increase food and beverage sales by an additional 10-15%.
Pre-order management systems streamline operations in premium seating areas by allowing fans to place orders before the event begins. Implementing such systems has been reported to reduce staffing costs by up to 20%, as fewer staff are needed to handle orders during peak periods.
This system also enables stadium kitchens to operate more efficiently by preparing orders in advance and ensuring timely delivery. Such enhancements not only allow venues to focus on delivering a superior fan experience but also simplify backend operations, as noted by several stadiums that observed a 25% increase in operational efficiency after adoption.
Personalization is crucial for making premium seating stand out. Platforms now allow venues to customize pre-order options, assign servers to specific suites, and adjust menus based on the event type, whether it’s a concert or a major sports game.
This customization ensures that premium guests receive a unique experience tailored to the occasion, leading to higher engagement and repeat visits. Venues that have utilized event-specific customization report a significant increase in guest satisfaction and loyalty metrics.
Across the industry, venues employing personalized services for their premium offerings witness higher fan satisfaction and increased loyalty. By leveraging data-driven insights, these venues can tailor services like menu items and promotional offers based on individual fan preferences.
Sending tailored offers based on past purchases or recommending items based on likely preferences enhances the connection between fans and the venue.
Offering in-seat merchandise ordering allows fans to effortlessly order exclusive team gear or limited-edition merchandise from their seats. This method makes the purchasing process convenient and attractive. In-suite delivery ensures that fans can continue enjoying the event while receiving their purchases promptly, promoting impulse buying.
Modern suite management systems empower attendants to manage orders, track open tabs, and finalize transactions directly from their mobile devices, thereby facilitating fast and personalized service. Integrating pre-orders with game-day orders in a single system improves operational efficiency and delivers an unparalleled experience for premium seating guests.
In-seat QR code ordering has proven effective in improving fan engagement and operational efficiency. Fans can scan a QR code to order without missing any action, enhancing their event experience significantly.
Beyond improving the fan experience, this technology reduces staffing requirements and streamlines operations, which has been particularly beneficial during peak event times, as observed in multiple stadiums with a documented increase in both sales and fan engagement metrics.
Equip suite management systems with advanced analytics capabilities to generate real-time reports on sales patterns, inventory levels, staff performance, and customer preferences. This data can guide business decisions, help optimize pricing strategies, and customize marketing campaigns, ultimately leading to better business outcomes.
Incorporate eco-friendly options within the suite and premium seating options such as biodegradable packaging and locally sourced food products. Promoting sustainability can not only appeal to environmentally conscious fans but also reduce waste and potentially lower operational costs.
Ensure that the ordering and delivery systems are accessible to fans with disabilities. Features like voice-activated ordering, high-contrast menus on digital devices, and wheelchair-accessible delivery options can make the service inclusive, enhancing the reputation of the venue and complying with legal accessibility requirements.
Integrate interactive elements within the app or QR code systems, such as live polls, trivia games related to the event, or opportunities to win merchandise or food upgrades. This can enhance fan engagement, making their experience more memorable and increasing their likelihood of spending more.
Include options for immediate feedback on food and service directly through the ordering platform. This enables real-time service recovery if needed and helps in maintaining high service standards. Positive reviews can be showcased to increase the credibility and attractiveness of premium seating options.
Leverage the digital platforms used for in-seat ordering to display advertisements or promotions from sponsors, creating an additional revenue stream. Tailored offers or exclusive content from sponsors can also enhance the fan experience while providing value to partners.
In the wake of health concerns, such as those highlighted by the pandemic, include features that promote safety like contactless payment and delivery, indicators of sanitized areas, or even health tips related to the event (e.g., hydration reminders during hot weather).
Using these strategies, organizations can significantly improve fan experiences, resulting in increased loyalty and future attendance.
The evolution of stadium fan experience has undergone a sea change, shifting towards a more refined, personalized service. This is particularly evident in the rise of premium suites at venues, which has raised the bar for fans’ expectations when it comes to bespoke services. No longer just a seat in the crowd, attending live events has become an immersive experience that truly caters to individual preferences.
In response to these emerging trends, SuiteSpot, an all-in-one premium seating app developed by retailcloud, an innovative omnichannel e-commerce platform, plays a key role in enhancing this experience. This comprehensive premium seating application is designed to enhance suite members’ experiences across various events, perfectly capturing the growing demand for luxury and convenience in sports management. With SuiteSpot, fans can enjoy the finer things in life while savoring every moment of the action.
SuiteSpot improves the premium suite experience in several ways:
Instead, fans can quickly purchase desired items, which are delivered right to their suite. This keeps them fully immersed in the event’s excitement without missing a beat. The sales inventory order management software from retailcloud ensures efficient fulfillment, directing orders to the appropriate store or warehouse, which streamlines the entire purchasing process.
Whether addressing concerns regarding available spaces, package offerings, or real-time availability, the app improves the fan experience and supports streamlined operations for venues of all sizes, making it an invaluable tool for effective management.
Integrating venue POS into operations enables venues to provide exceptional service that consistently meets and surpasses the expectations of discerning guests, thereby enhancing their competitive advantage in a saturated market.
SuiteSpot enables venues to deliver exceptional service that exceeds the expectations of today’s premium guests, ensuring that attendance at an event in a luxury suite is both memorable and enjoyable. This service includes convenient merchandise delivery, exceptional food, and beverages.
SuiteSpot is a user-friendly application built for suite management. Whether in stadiums or concert venues, this easy-to-use and user-friendly premium seating and suite management app offers a stress-free experience for both the owners and guests. The efficient pre-ordering system enables guests to submit and oversee orders prior to events effortlessly.
Understanding user preferences based on data analytics and perhaps previous orders, the app customizes services and hence increases guest satisfaction. SuiteSpot also provides real-time order tracking and seamless communication between suite attendants and the back office, resulting in increased efficiency and faster service.
Through automated order management, SuiteSpot reduces manual tasks and operational costs while ensuring quick service. It offers tailored guest interactions, simple ordering through user-friendly interfaces, and secure payment options for a seamless experience.
Likewise, SuiteSpot enhances suite operations with personalized menus, detailed reports, and simple integration with other apps, ensuring smooth transactions and valuable insights for every event.
Premium seating areas in sports stadiums play a key role in shaping fan behavior and loyalty, enhancing the game-day experience. This change is driven by improved comfort, social interaction, exclusive amenities, technology integration, and the building of long-term relationships.
As sports venues respond to evolving fan expectations, it’s highly important to understand these louds and softs to create engaging environments that attract a diverse audience. Investing in premium seating and using tools like SuiteSpots from retailcloud enables fans to connect with live events, appealing to both traditional fans and newer generations looking for unique social experiences. Stadiums can use real-time inventory tracking systems like nGauge and customer relationship management (CRM) systems to increase loyalty while increasing revenue.
The future of sports entertainment lies in creating inclusive environments where every fan feels valued and connected to the game. For more information on premium seating and how retail POS software suites and services from retailcloud can influence fan behavior, contact us today.
The convenience offered by RFID and Barcode technology within contactless payment frameworks is revolutionizing not just the shopping experience, but also inventory management practices across the retail sector.
Think of a seamless shopping experience where customers walk in, pick up items, and exit without waiting in line. Their accounts are automatically charged through contactless payment. This easiness is getting closer with advanced technologies like RFID and barcodes, which not only streamline the checkout process but also enhance inventory management.
In this blog, we will delve deeper into these technologies to understand their applications, advantages, and why many businesses view RFID as the superior choice for optimizing retail inventory processes.
Radio Frequency Identification (RFID) is a cutting-edge technology that uses radio waves to identify and track objects. It has found widespread application in numerous industries and operates across three main frequencies: low, high, and ultra-high, each tailored for specific uses ranging from inventory management to tracking large assets.
We have seen what is an RFID scanner. It uses electromagnetic fields to identify and track tags attached to objects. The system includes three main components: an RFID reader (or interrogator), an antenna, and RFID tags.
When the reader emits radio waves, the tags respond by transmitting their unique identification numbers. This communication can occur over varying distances, depending on the type of tag used, facilitating real-time tracking and monitoring of inventory.
The main types of RFID tags are:
RFID technology has revolutionized inventory management by offering a variety of powerful applications. Businesses can monitor inventory levels in real-time, cutting down on stockouts and stack overflow. Automated inventory counts do away with manual scanning, saving time, and labor costs. Also, its enhanced security features prevent theft and misplacement. Many have successfully rolled out RFID, demonstrating their effectiveness in improving efficiency and accuracy.
Putting RFID to use helps businesses easily locate specific items within warehouses, zero in on inventory trends, and maintain regulatory compliance. It provides detailed visibility into the supply chain, enabling automated reordering, and streamlined returns. Using these applications, businesses can significantly improve their inventory management processes, resulting in increased efficiency, reduced costs, and better customer experiences.
Furthermore, the integration of RFID with other systems helps retail data analytics and smarter decision-making processes, thus optimizing the overall supply chain operations.
Barcodes have become integral to modern commerce, enabling efficient inventory management, streamlined checkout processes, and better tracking of goods throughout the supply chain. They are visual representations of data, encoded as a series of lines, spaces, and sometimes letters or numbers. These lines can be scanned and read by machines.
A barcode scanner decodes the pattern and translates the information into digital data, which computer systems can use to perform a multitude of tasks. These codes are used in various industries for tracking products, managing inventory, and facilitating transactions at points of sale, making them a crucial component in the efficiency of global trade and logistics.
Barcodes are optical representations of data that consist of parallel lines (1D) or squares (2D). They can be scanned using optical devices such as barcode scanners or smartphones. When scanned, these devices interpret the patterns into readable information about products or items. This system streamlines inventory management and eases the checkout process in stores, making transactions quicker and more efficient.
The most common types of bardines are 1D (one-dimensional) and 2D (two-dimensional).
Popular examples of 1D barcodes include the Universal Product Code (UPC), European Article Number (EAN), Code 128, and Code 39.
They can support up to 7089 characters on a single label and are often used for applications like mobile ticketing. Data Matrix codes and QR codes, which can be scanned by smartphones, are examples of 2D barcodes.
Barcodes have significantly transformed inventory management by enabling automating tracking, improving accuracy, and speeding up processes. They enable real-time updates of stock levels, which helps prevent both overstocking and stockouts. Also, barcodes reduce human error by automating data collection and aid in the tracking of products throughout the supply chain. This results in simplified operations, optimized logistics, and effective coordination within the supply chain.
In the retail sector, barcodes speed up checkout processes and make the handling of returns more efficient. In warehouse settings, they simplify the retrieval of items and the management of storage, notably improving operational efficiency and reducing errors in order fulfillment. The integration of barcodes across inventory management systems underscores their quintessential role in amplifying operational productivity and precision across industries.
Below is a table showing the key differences between RFID (Radio Frequency Identification) and barcodes:
In analyzing RFID vs barcode, both are used to track and identify items, but they operate in distinct ways. RFID utilizes radio waves to communicate between a tag, which contains a microchip and antenna, and a reader. This enables RFID tags to store and retrieve large amounts of data directly. In contrast, barcodes are visual patterns scanned to access information from a separate database.
The choice between RFID and barcodes depends on the application requirements. RFID is ideal for automation and frequent data updates, making it suitable for supply chain management and asset tracking. Barcodes, with their simplicity and lower cost, are better suited for retail, libraries, and ticketing.
RFID technology offers significant advantages over traditional barcodes in inventory management. While barcodes are cost-effective for many businesses, RFID excels in high-volume settings due to its ability to simultaneously scan multiple items, increasing speed and accuracy while reducing labor costs.
Some of the RFID advantages include real-time tracking, better accuracy, faster data collection, enhanced security, increased durability, scalability, and flexibility. These advantages make RFID the right choice for businesses looking to improve their inventory management processes.
Studies show RFID significantly boosts performance metrics. For example, research from Auburn University found that RFID improved inventory accuracy from 65% to 95%, reduced out-of-stocks by 50%, and increased sales by 5%. Similarly, the University of Arkansas reported a reduction in inventory carrying costs by up to 40% and out-of-stocks by 60%, with sales increasing by 18%. These findings illustrate that RFID solutions can have a significant impact on the bottom line of retail businesses.
It is well known that barcodes and RFID play an important role in inventory management. Barcodes offer a cost-effective solution for many businesses, but RFID technology stands out as the superior choice for organizations that operate in high-volume environments and prefer higher operational efficiency.
Using RFID systems, retailers can conduct inventory counts efficiently and accurately without having to perform manual tallies, which leads to a significant reduction in stock discrepancies.
Organizations must carefully evaluate their specific needs and select appropriate technologies to optimize their inventory management strategies and fully capitalize on these advantages.
The Inventory 360, RFID Inventory Tracking System from retailcloud offers distinct advantages in this context, including streamlined catalog management, precise stock control, and efficient label printing. Using this comprehensive software, audit processes can be simplified, discrepancies can be minimized, and accurate stock levels can be maintained easily.
Likewise, businesses utilizing RFID technology to track and manage tools and equipment can significantly enhance precision and operational efficiency, thereby positioning themselves as competitive entities within the ever-evolving landscape.
Ready to incorporate these benefits into your business? Get ready to join hands with retailcloud. Our team of professionals is dedicated to providing goal-driven retail POS software suites and services across various industries, including retail, sports, and entertainment. Let us help you streamline your inventory management with tailored RFID solutions that help you make informed decisions.
The new rules in Major League Baseball aimed at shortening average game times can have several impacts on merchandising and concession sales at stadiums: MLB revealed the pitch clocks have shaved an average of 26 minutes a game to 2 hours and 36 minutes. The following are some of the ways that game day sales have been impacted.
Reduced sales volume: With shorter game times, fans will spend less time in the stadium, which could lead to fewer opportunities for them to purchase merchandise and concessions. This may result in a decrease in overall sales volume.
Shift in spending patterns: As fans adapt to the new game duration, they may alter their spending habits. For example, they might make quicker purchases before the game or during breaks, rather than casually browsing and buying items throughout the game. This could lead to increased sales in specific periods, such as pre-game or between innings.
Focus on efficiency: With a shift in buying habits, stadium operators can increase the efficiency of their merchandising and concession operations with sports and entertainment POS systems. This could include streamlining product offerings or offering item of the day promotions, optimizing staffing, and adopting technology to speed up transactions.
Changes in pricing: Stadiums may adjust their pricing strategies to compensate for the potential decrease in sales volume. This could involve offering discounts or promotions to encourage fans to spend more in a shorter time frame, or even increasing prices to maintain revenue levels.
Increased emphasis on fan experience: To keep fans engaged and spending during shorter games, stadiums may invest more in enhancing the overall fan experience with premium suites in seating. This could include offering unique or limited-edition merchandise, creating innovative food and beverage options, or providing interactive experiences that encourage fans to visit concession stands and merchandise outlets.
Off-stadium sales: Teams and stadiums might also increase their focus on online and off-stadium sales channels to offset potential losses from decreased in-stadium sales. This could involve improving their online stores, offering exclusive online deals, or partnering with local retailers for co-branded merchandise.
Ultimately, the impact of the new rules on merchandising and concession sales at a stadium will depend on how well teams and stadium operators adapt to the changes and implement strategies to maintain or increase sales in the new environment. Improving the fan experience with improved checkout efficiency, allowing fans to return to their seats will be paramount.
To speed up transaction times in merchandising at stadiums and improve the overall fan experience, there are several technologies that can be adopted:
RFID technology: Integrating RFID tags into merchandise and using RFID scanners at the point of sale can expedite the checkout process by instantly updating inventory and allowing for quicker transactions.
Mobile ordering apps: Fans can use their smartphones to pre-order and pay for merchandise, allowing them to skip lines and simply pick up their items at designated locations or have them delivered to their seats.
Self-service kiosks: Equipped with touchscreens and payment processing systems, these kiosks enable fans to quickly place orders and pay for merchandise without waiting in line at traditional counters.
Automated inventory management: Smart inventory systems can help ensure merchandise is always in stock and readily available, reducing wait times for items to be retrieved from storage.
In-seat merchandise: Installing small vending machines or merchandise storage lockers near seating areas can allow fans to quickly purchase items without leaving their seats.
Digital wallets: By creating a digital wallet or a stadium-specific currency, fans can preload money onto their accounts for faster transactions at merchandise stands.
Queue management: Implementing queue management systems, like virtual queuing or line-monitoring apps, can help distribute customers evenly among available service points and reduce wait times. Giving fas access to approximate wait times at different stands can also help them plan their purchasing trips
Augmented reality (AR) shopping: AR can allow fans to virtually try on merchandise and make purchases from their seats, eliminating the need to visit a physical store or stand.
By adopting these technologies, stadiums can create a more efficient merchandising experience for fans, allowing them to spend less time waiting in line and more time enjoying the event.
Determining the Item of the day sales can be complicated, ideally they should create an urgency for fans to buy a specific item without cannibalizing existing sales, you can follow a systematic approach that leverages data and considers various factors. Here’s an algorithm to help you identify the “Item of the Day” for each game:
Collect data: Gather historical sales data for all items in your inventory. Ideally, you should have data for the past few seasons to better understand sales trends and customer preferences. Also, take note of any special events or promotions that might have influenced sales.
Determine item popularity: Calculate the average sales per game for each item. Rank them according to their popularity. This will help you identify the items that are selling well and those that need a boost.
Identify slow-moving items: From the ranked list, identify items that have a low sales volume per game and could benefit from being the “Item of the Day.”
Factor in seasonality and trends: Consider the time of the year, special events, or other trends that might affect item popularity. For example, if your team has a rivalry game coming up, you might want to promote items related to that rivalry.
Create a non-repeating schedule: Once you have identified a pool of items that can be featured as the “Item of the Day,” create a schedule for the 81 home games that ensures no item is repeated.
Set a discount strategy: Determine the discount percentage or pricing strategy for each “Item of the Day.” You might want to offer a higher discount for slow-moving items or lower discounts for more popular items to avoid cannibalizing sales.
Monitor and adjust: Track the sales performance of the “Item of the Day” and compare it with historical sales data. If you notice any negative impact on overall sales, adjust your strategy accordingly.
One of the most difficult aspects of being a retailer is inventory management. It is, however, one of the most crucial aspect. It’s impossible to understand your company’s financial situation unless you have a good understanding of how much your inventory is worth.
Retailers can build an accurate picture of how much their inventory costs them over time by performing regular inventory valuations — and how the value of this asset affects their tax obligations and profitability.
In this post, we will define inventory valuation and the various inventory valuation methods that retailers can use for inventory accounting.
The majority of merchants will have a significant amount of capital invested in their inventory (particularly if they use a Just in Case [JIC] inventory management approach), so knowing the worth of your present assets and how they affect your profitability is critical.
Inventory valuation is an important aspect of inventory accounting that allows you to determine the worth of unsold inventory. Understanding inventory value is crucial when generating end-of-year financial accounts for cash flow and tax purposes, among other things.
In conclusion, inventory valuation is used to determine your total gross profits, which are influenced by your total cost of goods sold (COGS). This will either inflate or deflate your profits, depending on how your inventory is priced and the cost flow assumption you apply.
To properly value your inventory, you must account for all costs associated with acquiring and preparing goods for sale, as well as the purchase price (excluding indirect costs such as marketing or administration). This includes the following:
Understanding the value of your inventory goods will help you make future purchasing decisions and establish whether your present inventory management strategy is effective. To help control changes in the market rate of your inventory, there are a variety of inventory valuation methods available, albeit the most appropriate strategy will depend on the type of your organization
COGS is a term that refers to the cost of goods sold. Depending on which inventory valuation technique your retail business employs, COGS will vary.
The less you can assign to the cost of goods sold, the higher the closing inventory valuation. This is why it’s critical to ensure that you’re appropriately pricing your inventory, otherwise your entire profitability will suffer.
Making the best markdowns/restocking decisions. You need to know how much your inventory costs you in order to price your products appropriately and make a decent profit margin. This has an impact on markdown decisions, especially if you have surplus inventory that needs to be sold before depreciation sets in. You may calculate your business’s minimum profit margin by using the correct inventory valuation method.
It’s crucial to understand the difference between using an inventory valuation method for accounting and using it as an inventory system. For example, in order to employ FIFO for inventory valuation, a company does not have to sell things on a first-in, first-out basis.
Choosing the best inventory valuation method for your retail firm is dependent on a number of criteria, including:
Inventory is one of the most important parts of the jigsaw when it comes to running a business, and it’s crucial that you adopt the correct valuation plan to help your company expand and profit. You may acquire a strong handle on your business’s profitability and be better by employing one of the four inventory valuation methods discussed above. When it comes to making important decisions about your brand’s future, you should be well-informed.
Now that you have set yourself up for success by following all of the recommendations from Day 1 and Day 2, it is onto Day 3. Today you will begin the counting process, one of the most important steps of a successful inventory. Following these simple steps will help you in completing your inventory correctly and efficiently. Make sure you schedule a time to do this when the store is slow or closed – if doing it while closed, it’s best to section off areas as they are being counted – so you are not selling items from the counted inventory.
What to do on Day 3
Using the mInventory app you will need to go to Inventory counts and start a new project. It is best practice to name the project based on the locations you are counting.
Once you have created the project it is time to start scanning. The scanning can be done two ways. The first method is to scan every item individually, this will be the most accurate way to scan as it will make sure you are counting similar items as the correct UPC. The second method would be to scan the item once and then type in the total count for that item. If you do have similar items with different UPC you will need to make sure that you separate them before attempting to scan your inventory with this method.
Once your whole section is counted you will export the project and email it to your manager.
The manager will receive all exported project files which will contain the details of who counted each section and what was counted.
After all projects have been consolidated, the manager will compare these counts to the current quantity on hand using an IBR from the CAS Portal to find any large discrepancies.
These large discrepancies will then need to be recounted to verify that all pieces have been accounted for.
As a best practice, you can randomly select products and recount them – assuming there is no variance, you can be confident of the counts. If you see substantial variances, you may want to determine if the errors were with one counter or section and expand the recounts accordingly. Some stores keep counting until all items have been verified (the same count appears twice). The comfort you have with inventory counts is not decided in the annual count – it’s typically achieved in periodic cycle counts.
Review all the adjustment reports and confirm the count once you are satisfied that you have an accurate count.
In the next blog, we will discuss best practices in analyzing your inventory and maintaining accuracy of your stock levels throughout the year. For more details on Key Performance Indicators you can read our blog post on Retail Math.
Hopefully you have had a chance to get through all the Day 1 Activities, to review here is a list; don’t be tempted to skip through the steps in the interest of saving time today as it will result in a lot of extra time being spent on the count day to reconcile the inventory. You will be pleased to know that Day 2 is much easier than Day 1, but equally important to a smooth count.
What to do on Day 2
Have your team download and familiarize themselves with mInventory, especially the section on Inventory Counts. Make sure that each team member has their own user name and password and can log into the app; if passwords need to be reset or user created you should do so now using nGauge or the CAS Portal
On Day 1, your team would have organized the product and checked for damages, during the course of doing that they might have run across items that did not have barcode labels, this would be a good time to print those and resticker the product; if you are using CAS to print the labels you can use roll or Avery labels on your laser printer (money saving tip) or you can use Label.It for more printing styles and options.
Tomorrow is day 3, we will go through the best counting practices.Don’t forget to share your feedback and don’t forget to subscribe so you can see the next post, or you can join us on Facebook, Instagram or Twitter.
It’s that time of the year!
No, I am not talking about New Year’s resolutions – I am talking about getting your inventory done and putting in some best practices to keep your investment in inventory efficient year round.
I will be posting 5 blogs that will get you ready for your annual inventory counts – the first 3 will be to break down the activities you do to prepare for the counts and the last 2 will be on the best practices that you can implement to keep inventory managed year round. You may have already had a chance to read about how to do ABC Cycle Counts by Justin McCollom from our Major Market Team, which discusses the importance of having good inventory management to support your Online Ordering/eCommerce sites. My approach over the next 3 posts is to take you through a more granular list based process. So don’t forget to subscribe to new blog posts over on the right panel.
So let’s get into the tasks – this is really meant to be a checklist that you can share with your team, and since many of you reading this will be retailcloud customers, I will occasionally refer to specific processes within the CAS Portal.
What to do on Day 1
Almost done!
From the back of the house perspective you have accomplished a lot today, and built a foundation of success for your full inventory count.
Start organizing the inventory in the store so that it will be easy to count, have your team prepare a floor map by Department or Category of where the product is and to begin to place it. If your store is not organized and ready to be counted, then this is a good place to start getting it prepped for inventory and gather like items together.
While organizing, take some time and look out for damaged items, these should be inspected and discounted or adjusted out of inventory as needed. Good luck, please share your feedback and don’t forget to subscribe so you can see the next post – if you don’t want to subscribe, you can join us on Facebook or Twitter.
Inventory counting is the process of systematically tracking and verifying the quantities of products or materials on hand within a business. With the start of the new year upon us what better time than now to start thinking about inventory?. Year-end inventories can be a thing of the past if you incorporate cycle counts into your operation. Utilizing the tools we provide at retailcloud you can have more accurate records year-round instead of waiting until the end of the year to do the typical tedious full year-end inventory. With a multitude of backend reporting, innovative and completely free inventory management apps we will help you through the process. Whether it’s running analytics like real time inventory tracking system, nGauge or utilizing retail inventory software, mInventory for all of their inventory needs, we got you covered. Users can use our apps to scan inventory for your cycle counts using the camera on your phone and complete inventory adjustments all from the palm of your hand.
An inventory count, also referred to as a stocktake or physical inventory, is the process of manually verifying and counting the items or materials a business holds in its inventory at a particular point in time. This procedure is carried out to confirm that the actual stock matches the recorded inventory levels and to detect any discrepancies.
Performing an inventory count allows businesses to evaluate their stock levels, identify any problems like overstocking, understocking, or inventory shrinkage, and uncover potential weaknesses in their inventory management system, ultimately helping to improve operational efficiency.
There are four main types of inventory counts, each serving a specific purpose to ensure accurate tracking of stock levels:
Periodic Inventory Count: This method involves counting the entire inventory at regular intervals, such as annually, quarterly, or monthly. It is commonly used by smaller businesses that do not have the resources for continuous tracking. After each count, inventory records are updated based on the physical count.
Perpetual Inventory Count: This system involves continuous tracking of inventory in real-time using technology like barcode scanners or RFID. As goods are sold or received, the inventory count is automatically updated. It provides a more accurate and up-to-date view of stock levels, making it ideal for businesses with high turnover or large inventories.
Cycle Count: A cycle count involves counting a portion of the inventory on a regular basis rather than all items at once. This method allows businesses to keep inventory levels accurate without disrupting operations. The items are counted in cycles, often on a rotating schedule, ensuring that every item is counted periodically throughout the year.
Spot Inventory Count: This is an ad-hoc count where specific items or categories are counted randomly or in response to a particular issue, such as suspected theft or discrepancies in inventory. It is usually a targeted approach used to verify specific parts of inventory rather than a full count.
Each of these methods offers a different approach to inventory management, and businesses choose the type that best suits their needs and resources.
There are many benefits that come along with cycle counting as opposed to doing the full end of the year inventory including:
ABC analysis is an inventory categorization technique, that divides an inventory into three categories. These categories will be cycle counted throughout the year based on the rules set by ABC. Putting your focus on the higher valued items first.
When determining your ABC categorization, it is important to factor in these 5 key pieces of data to give an overall idea of the value of each item. Once you have all these factors determined you will be able to assign them to the ABC categories based on their ranking in each field.
Once you have your ABC analysis completed you will be able to sort your inventory based on these factors and determine which items you need to focus on first. Your A inventory items will be counted more often and can even be added into your warehouse staff’s day to day operations. Once you complete all of your A inventory items you can move on to the B category which should be counted semiannually, and then onto the C category, with the least effect on your business these items can be counted annually. Utilizing your own staff is best practice as they will have a vested interest in the inventory and the accuracy of their counts. They will also be familiar with the many tools retailcloud offers to make these tasks simple.
Streamline your inventory counting with retailcloud’s powerful tools! Using mInventory and nGauge, you can simplify and accelerate your inventory management. With mInventory, manage your inventory directly from your mobile device, making stock counting and adjustments quick and efficient. nGauge, retailcloud’s integrated analytics platform, provides you with real-time insights and actionable data to optimize your inventory management. Don’t let inventory take over your valuable time—use retailcloud’s solutions to gain control, reduce discrepancies, and make smarter, data-driven decisions. Start using mInventory and nguage today and transform the way you handle inventory!
As part of the retailcloud sales team, at least 2-3 times a week I speak with a business owner who tells me that their biggest issue is staying on top of the cash flow; in fact a not to uncommon statement is that we just had a great month but I don’t know where the money went.
Managing your Cash Flow and effectively converting inventory into cash are the most important things that small business operators do. With that in mind I thought I would put together a very high level post on some basic practices on cash flow management. If you want some complexity we have other posts on managing cash flow, GMROI and sales to stock and cash to sales ratios that can take you to the next level but this for the basics.
Let’s begin by taking that money and putting it into some piles
Paying Sales Tax – this is often overlooked, but start first by running your sales tax settlement reports and put that aside for the tax man – there is no getting around that. While you are doing that, make sure that the amount you are reserving is in line with what your sales are – often items are not properly set up in your system and you may have neglected to collect the correct taxes.
Paying your Employees – Look at your time clock reports and forecast what you need to pay your employees, remember to carefully set aside withholding amounts and any other employer contributions. These are monies that you don’t want flowing into your operating accounts.
Keep your doors Open – Know what your fixed costs are (Rent, Utilities, Business Operation Fees) and prorate them so you are setting aside enough to cover these fixed expenses. Having accurate projections will allow you to forecast what your minimum sales are on a daily basis to cover overhead.
Replacing your Inventory – Finally set aside enough to replace your inventory, if you are buying on account you will need to pay your vendors and if you are paying on delivery you need to keep your items stocked at optimum levels. While doing this, consider what you stock on hand is and determine if you are better off investing in complementary products. Have a look at our posts on Increasing per Unit Sales.
See what’s left over – This is for you if there is not enough to go around, you only have a few choices
These are 4 simple checkpoints – having these good practices will help you build a strong and profitable business. The majority of business failures occur due to poor cash management.
The key to retail success is having a plan you can implement, reducing the variables and executing the plan to perfection! Ok So you knew that already, but how do you go about doing that.
Since you are reading this, I will assume you are part of the 20% of retailers that have put processes in place to monitor your expenses, manage your inventory levels and are reviewing your product mix and performance.
You might even be part of the 20% of the 20% that has implemented a CRM that tracks customer preferences and is aware of slippage activity; if you are just doing loyalty that’s not good enough.
So you are now part of the 20% of the 20%, now what – how do you get to be 20% of the 20% of the 20% that is executing to perfection. Let’s look at one of the simplest ways to get there.
Put another way :
80% of all small business are content with opening the doors and waiting for customers to come in – when they do they focus on selling them what they have and meeting whatever needs they ca,
20% of them are looking at their product mix and managing their costs and inventory levels on a regular basis – They are aware of a key KPI’s and are looking for ways to increase margin and ROI.
20% of that 20% (4% of all merchants) are taking it a step further they have implemented a CRM and have launched an online commerce store – they work hard at trying to increase their foot traffic, focusing on marketing, making their inventory visible and doing what they can to match their stock levels to customer preference.
The difference makers – the ones who seem to have all the luck the 20% of the 20% of the 20% (thats .8% or 80 out of a 1000 businesses) are focused on doing more with what they have – seems simple but often misunderstood it’s focusing your energy and efforts on where they make a difference. Make every action count! What does that mean.
How many customers come in and how many are buying – if for example 10 out of every 50 customers who come in buy something, focus on what it takes to get that to 11 – that immediately reflects a 20% increase in sales. Are they looking for sizes, color or product you don’t have – can you meet those needs using retailcloud’s endless aisle or predictive reordering to ensure you have the right mix? Does your clienteling system allow you to suggest substitute products?
Yes again you are right everyone says that , but what kind of insight does your POS system give you on similar customers, are you using machine intelligence to recommend items based on what customers have selected as well as what that customer has previously purchased? If your average units per transaction are 1.67 and you get 1 out of every 5 customers to buy one more item this could result in a 12% increase in sales.
Look at what how many customers are coming back and how often, does your POS system allow you to reach out to them with targeted offers (promos or experiences) to drive them back – the better you know your customers the more effective experience based marketing is; say for instance you know they love UnderArmour shoes, invite them back for an early preview of the new shoe line; or if they like a certain wine – allow them to reserve part of that allocation before it comes in – (use the retailcloud prepaid feature). Utilize the valuable information in your customer preference profiles. If you can increase your customer retention by 10% this again would have a huge impact on your bottom line.
So what does it take to be the 20% of the 20% of the 20% – it’s the little details; while your competition is using a scrambling approach you can focus on the details and successfully execute a winning strategy.
retail Key performance Indicators ( KPI ) in combination of recommendation & pragmatics analytics are key to solve sales challenges retail companies are facing. If you would like to learn more about the how you can improve your retail performance bookmark our blog and keep watching this space.
1. Embrace the data – Quality Data Will Replace Big Data , Have your POS data start working to provide you with information on lagging lines and to start matching product to customers more effectively.
2. Embrace the tech – The discussion has been resolved; Consumers do prefer shopping via mobile in store and out of the store. The POS has extended to the customer phone, and it’s easy for SMB to respond.
3. Embrace your online presence – Digital shopping can be a destination, and with the dropping cost of ecommerce, online insight to product and inventory is a must have.
4. Embrace customer engagement – Reset your customer service culture, train associates to provide quality in-store engagement and use your customer preferences and inventory data to provide relevant engagement through social media.
5. Don’t fear the unknown – It’s about a seamless customer journey. In store experiences and loyalty will get more relevant, the brick and mortar experience will become the secret weapon against big online.
6. Don’t fear payment providers – Payment solutions are becoming more competitive and innovative, the entry barriers to provide multiple payment options are being lowered as consumers demand more options.
7. Embrace Retail as a Service – It’s more than just carrying inventory and selling the product – customers expect more and suppliers want to do more. Endless aisle, pop-up stores within stores and customer preference data will all lead to a more curated retail experience for the consumer.
A full annual inventory can seem like a very daunting task as a whole. However, prep planning will break down the steps and make the full process less overwhelming. These steps will increase your count accuracy, reduce the time you spend counting, and lead you to a successful inventory overall.
Who & When In planning for your prep, schedule your inventory day far enough in advance that you give yourself plenty of time to prep. A good practice is to have 30-45 days to prep. It is ideal to schedule your count at a time that will not be busy in your location.
Plan the team that will be doing the prep and counting. When selecting counters, choose seasoned employees as well as those who can provide fresh eyes. A key part of planning your staff, is communicating with them the importance of their role in the overall success of the inventory. Share with your team the tasks they are assigned, and create a centralized location for tracking progress of the prep.
Organize
A majority of your prep work, will be organizing your product. Make a map your that includes dates that each section is expected to be ready to count. Assign members of the team that will prep and count each section. If you have a warehouse, it is best to start there, as your team will be able to maintain the prep work once it is done. If you have freezer/refrigerators or off-site inventory, don’t forget these in your map and timelines.
Identify
Identify what it will take to organize your product for counting day. Locate items without barcodes and decide if you will generate and affix barcodes, or prep them on a manual count sheet. Designate a space or sign that will clearly identify items that will not be counted. Any defective or obsolete product should be disposed off and removed from the count area and written off from the system quantity. It is important that any receivings/transfers are frozen and staged in an area that has been designated to not be counted inventory day.
How will you count
Establish with your team how you will conduct your inventory count. Traditionally, physical counts are done with pen and paper. While this can get the job done, it requires an extra step for someone to enter all the data. Using a scanner app, will make counting your inventory a breeze. The app will sync completed counts with your POS so once you’re done counting, you can easily update your stock levels.
Using an Inventory application or device
Using an inventory application or device enables you to complete your inventory count from a handheld device, sometimes even using your phone & its camera to scan. This saves you the time of working with manual counting sheets. This process will require the use of a fully charged device or maybe a wifi connected phone. When planning your prep, you’ll want to include the set up of your device. It is also a good idea to practice with the device or app prior to count day, and review the steps and best practices with your team.
Food and Drinks for your team
You’ll want to keep your team happy and efficient on inventory day. It is a tedious process, so keeping them on top of their game will be an important part of your planning. Have water, coffee, maybe some pizza or snacks on hand. This will also boost their morale and increase their attention to detail on this important task.
Day of the count
Pre-designate a person that will oversee the flow of the count. Making notations on sections as they are complete is a great way to avoid double counting. Double checking and auditing counts as sections are complete, will be a good idea before updating stock levels. Avoid postponing inventory checks, as the best time to do it, is while everything is fresh in mind.
After the count
Pull up your inventory reports and analyze the data to see what can be done to improve your business. Use this information to identify high risk zones, and adjust standard practices to minimize losses in these areas. A good practice to adopt would be to have frequent cycle counts of areas or items that show significant discrepancies. This will help you in identifying trends within your business.
Smooth and painless inventory days are no accident. Details planned well in advance will help you be prepared and have a more accurate count, and with less stress. Making sure you have the right tools, the right people, and the right plan will help you have a successful day.
If you liked this blog you might be interested in our previous article on this topics as well
Liquor store POS (Point of Sale Systems) is an important tool to make sure operations runs smooth and seamless. Store managers have a great deal of responsibility to make sure that everything from catalog, inventory, and customer experience are handled flawlessly. As a software provider for numerous liquor stores across the country and talking to several business owners & store managers we have identified some of the most common aspects one should consider for a liquor store inventory management and point of sale system.
A Liquor Store POS (Point of Sale) system helps businesses streamline their operations, improve customer service, and enhance profitability. By integrating sales, inventory management, and customer data, a POS system allows liquor store owners to efficiently track sales in real time, manage stock levels, and prevent inventory shortages or overstocking. It automates the process of updating inventory with each sale, reducing human error and saving time. Additionally, a POS system enables businesses to offer loyalty programs, discounts, and promotions, enhancing customer satisfaction and retention. Reporting features within the system allow business owners to track sales trends, monitor profit margins, and make informed decisions to optimize pricing and product offerings. Moreover, the system often integrates with accounting software, making financial management easier and more accurate. Overall, a liquor store POS system is an essential tool for improving operational efficiency, boosting sales, increasing UPT and providing a better customer experience.
These 12 features are generally classified into these functional areas.
When a liquor store adopts a modern point of sale system, one of the challenges they have is how to load the product catalog. In some instances, the store hasn’t tracked products and inventory in the past, moving from a legacy cash register or simply starting a business from a buyout. A key problem in all of the above cases is lack of product tracking through an automated system. Retailcloud’s global catalog with over 50K liquor products allows an user to adopt the system seamlessly and get up and running in no time.
It is not an easy job to track inventory for all the products when you have a busy season and when your focus should be to sell more. Retailcloud inventory management module tracks the products across your business right from issuing purchase orders , receiving into the stores and managing inventory automatically into your location when you sell. Every business owner we have talked to has mentioned that accurate inventory tracking is one of the top 3 priorities they have with a new point of sale system.
With the variety of options within the liquor catalog management, one of the common struggles that liquor store managers have is how should they enter cases and packs into the system. Can I buy by the case and sell individually and get an accurate inventory? The solution to do this effectively is to have different units of measure available allowing for accurate reporting of inventory regardless of how you sell it.
Cash discounting has been one of the most sought out features in recent times. This allows the business owner to manage the payment processing cost more effectively in creative ways. The retailcloud system allows merchants to setup cash discounts, rebates for certain payments types and print on receipts.
Experts who advise liquor store operations says that the best way to have a profitable liquor store is to keep track of your profit goals. To effectively keep track of the profit it is important for a store to have tools to manage the cost of inventory and thus by reporting it back to you across your business. Many cost management systems do not provide accurate cost of good sold data. I have seen systems that update all items in inventory to the current cost price wreaking havoc on managing true cost of goods. A system which effectively calculate the weighted average cost and provide you with effective profit margins and KPI is very important. Retailcloud’s cost management and nGauge analytics platform provides these insights without additional plugins or 3rd party softwares.
Multiple employees are very common in liquor stores and having the tools to manage their sales as well as providing security against theft and abuse of the system . Have unique log ins and password/pin entry is a key necessity. Knowing which employee is ringing up the sale as well as limiting access for non key employees are among the features needed.
As a business owner one of the challenges faced is the level or access which can be provided to different employees and temporary staff. Well defined roles in the system with commonly accessed features and ability to promote or demote certain function is very handy in liquor store multi employee situations. Retailcloud POS provides unlimited users access across 10 different roles.
Age and ID verifications are important when you have mix and match of a variety of products. Automated prompts of Age and ID verification allows the cashiers verify the customers for the ID based on product category or scan on the Code Scanner for programmable beeps.
Ability to access the reports anywhere is one thing which every system should have in the 21st century. The global access to Sales and Inventory reporting anywhere anytime is key for business owners to analyze their business / profit strategies at their own time.
Irrespective of any type of business, one thing retailers across the globe will agree on is that they need ways to engage with their customers. One of the most common ways to do this is offering promotions and loyalty programs. Starting with simple discounts which can be announced through your weekly mailer or reward your most visited customers with loyalty programs can be useful tools to ensure that your customers think of your business first.
Customer engagement strategies varies from time to time. Purchase history and customer engagement drives those strategies. Ability to see the sales history and sales analysis helps businesses to better and more effectively engage with customers. VIP Clubs or Demographic based promotions are likely to improve the customer visits.
Most liquor store staff interacts on POS one way or other. Without additional software or subscription, the business owners can track employee time within the POS which is a very useful way to track the attendance. Attendance can be monitored remotely or overridden by supervisors as needed.
Checkout out retailcloud’s Liquor Store Point of Sale Features list here to learn more
Today we are announcing the General availability of PAX A920 Mobile All in one Smart Terminal with retailcloud’s point of sale solution. Last April we had launched the PAX E500 Smart Terminal. As we outlined in that post PAX commitment on suite of smart terminals has enabled us to launch more in the series.
PAX A920 Smart terminal is an all-in-one payment processing terminal with retailcloud’s full fledged point of sale and inventory management. PAX A920 is sleek, fast and secure.
With retailcloud’s Terminal on PAX A920 you can now manage your sales, engage with your customers, accept payments & print your receipts. It is a beautiful looking device which can be snapped into your pocket and use it whenever you need it.
Some of the key features & benefits of the retaicloud’s smart terminal are
PAX a920 is an engineering marvel with sleek design and comes with a HD tablet color display and integrated thermal printer . The printer is designed in such a way that it is not bulky but still fit a decent size paper roll into it. PAX A920 comes with Integrated Printer, Payment device and a high speed barcode scanner. Optional Dock is available to charge as well
retailcloud’s Software turn the A920 into a full featured point of sale software with customer engagement and cloud access. Print your detailed reports within the device or have it accessed through our cloud portal.
With the option to connect via Wifi or your cell phone provider you can take your point of sale to any location or if you need mobility for your business.
Manage your inventory for single location or multi location with retailcloud A920. Inventory is managed automatically as the products are sold from your stores.
A920 can accept all modern secure payment technologies such as EMV, MSR and Tap Payment.
Ability to do Cash Discounts, Surcharge or just add fee automatically when you make a sale is key for a lot or merchant to keep the business cost under control. Retailcloud terminal software allows the business owners to do this efficiently and display it on receipt.
If you are a business owner and exploring about mobile point of sale or adding another point of sale for your roadshows PAX A920 Smart Terminal is right choice to get started. Click the order now button to contact us if you want to learn more on how PAX A920 can be a solution for your store
It is important that business owners are presented with business tools and hardware which fits their needs. While there are plenty of Android based Point of sale out in the market, there was still void in the space mainly the integration with secured payment integration. PAX’s bold step to fill that void with a suite of smart terminals from 4” screen size to 15” is in that direction.
We are announcing the retailcloud full features Point of sale on PAX E500 terminal. E500 is a sturdy terminal in its own class which can handle your point of sale operations, inventory management, payments and customer engagement in a secured way.
With E500 you can now downsize the Point of sale hardware but still get and advanced solution. PAX E500 comes with 8” touch screen, 3” customer facing screen, Integrated EMV payment terminal, NFC Payments, Integrated 3 inch printer, Extension ports to connect extra peripherals
Here are some other benefits of using retailcloud POS on PAX e500
PAX E500 is All in one terminal with Printer, Tablet, Payment device in single unit. It is built with high quality hardware and have gone through rigorous certifications for the payment industry. PAX E500 comes with high quality & solid performance, equipped with multiple peripherals ports, large paper roll, technologies of auto-brightness setting, magic SR and grease proofing enabling smooth touch of screen.
retailcloud’s Point of sale app on E500 provisioned through the Paxstore is one of the only Full Fledged POS software available for E500. It has
Accepting payment have evolved over a period of time. EMV is gained traction and store owners feel short when they don’t accept Apple Pay, Google Pay, Samsung Pay or Alipay. Pax e500 can accept
The Solution is PCI Certified and compliant to the Payment Standard defined by the industry.
PAX E500 with retailcloud is easy to setup and get going. If you are interested in the program please contact us where we can help you order, setup your terminal and train to modernize your store operations.
Today’s perfect grocery store point of sale and retail management solution is full-featured, speedy, and reliable. Supermarkets need a POS solution that is seamless, running on grocery POS software that is fully connected to the rest of the store. From a single lane, multi lane, or many locations the POS solution needs to grow with the business and provide the tools for success.
The grocery store needs significantly more than a cash registers that prints receipts and holds cash. The perfect POS system addresses inventory, loyalty, analytics, and accounting. Grocery stores carry tens of thousands of products: fruits and vegetables, meats, breads, and dairy. Keeping track of product volume and sales data will maximize profit and help avoid spoilage, shrink, and stock-outs.
A strong POS system will streamline supermarket operations, cut costs, grow grocer’s profits, and maximize efficiency.
In looking at a POS solution, consider these key features:
Important to consider is the POS provider. Look for software upgrades and enhancements to be included in your monthly POS license fee, this can save you hundreds, if not thousands annually. Understand their merchant support, are they available during your peak hours. Are ou provided with training during your critical early days with the new software. And dont forget track record, are they comfortable with understanding the needs of the grocery store merchant and have the features to help your business thrive.
To begin with – Get to really know your customer!
If you are using a POS management software like retailcloud, you can get an in-depth understanding of your customer preferences, what their ideal product mix is, what their tendencies are, maybe even who their favorite employees are
Having this type of insight will allow you to create a more customer centric approach to your emails, ultimately improving your conversion rates and allowing you to target your product mix more specifically for your customers.
Online retailers gather every bit of customer data, their clicks what they looked at what they bought and what they abandoned, this may overwhelm you if you are not collecting any data today but time is on your side- start with a 3 simple things to get you started
These are just basic steps, if you are already using your retail CRM and would like a more indepth discussion on how to use preference marketing to drive additional sales (especially add-ons) email me at jordan@retailcloud.com.
Since Android made a foray into Tablet space in 2011 we have had opportunity to release hundreds or versions for retailcloud TabPOS. One of the challenge have always been to match TabPOS to our Enterprise Windows Point of sale system and allow customers to use it for their heavy processing situations. Some of the reasons why we held back on features were due to lack of hardware support and backing from provider when it mattered most for our customers.
Elo introduced next gen iSeries platform in 2015 and we extended our existing partnership with Elo to iSeries and Paypoint platforms. Their world class hardware & support has helped us navigate through these challenges and we have chosen it as our recommended hardware for serious business. Some of the outstanding features why we decided to choose Elo’s platform are
We have come a long way since then and in last 2 years we have accelerated our pace . retaicloud’s android TabPOS currently features some of the best solutions for any Android Point of solution out there
Beyond our Tablet Point of Sale we have extended our Android apps to business solutions such as
Today retailcloud’s & Elo solutions are used in Sport Arenas, Grocery Shop, Convenience stores, Liquor Stores, Salons, Apparel.
We are showcasing retailcloud and Elo solutions at @NRFBigshow #NRF2018 . Visit us at booth #3662 . Mention this blog to get a special offer on retailcloud and Elo bundle
Learn more about @retailcloud here
Learn more about @elo here
It is that time of the year, the dreaded full inventory count. This blog lays out 10 steps to simplify the process, increase your accuracy and reduce the amount of time spent on this task
The prep planning is the key to a successful and accurate count, most of the prep work can be done during regular business hours and will both reduce the time you spend counting as well as minimize recounts. Remember, an inaccurate count affects at least two years or stock levels and KPI analysis.
Schedule the date far enough in advance so that all involved have time to prepare for it. Plan for a date/time that is less busy. Ideal timing is right after an inventory clearing sales event before the new merchandise is received into stock.
Best practice tip: Give yourself at least 30 days to plan
Assign a specific role in the process to each person and make sure that they understand the role is fixed. Explain the need for accuracy. Of course, consider your staff for the task, with thought given to checks and balances. If internal theft is a consideration, you cannot depend on an accurate count. You may want to assign personnel to areas which they do not have a direct associate with or other stores. Using an outside service provides an alternative, with the downside is that they can be costly and they do not have the same knowledge of the merchandise and stock locations that your team does.
Best practice tip: Use experienced team members in key roles, who have an understanding of the product and the count plan
A fixture map is a physical layout of the store with all stock locations. Each display, rack, stock location should be assigned a fixture map code that will be used for counting. When doing the physical counts, include the fixture code on the count sheets so you are able to tell which areas are not counts and where the merchandise was, if a recount is needed. The fixture map will also encourage all team members to use the terms in describing the completed work.
This will provide a critical map to a well planned wall to wall inventory count that assures that all product is counted.
Best practice tip: Organize fixtures so that the product is not varied, and the counts can be done systematically. Once counted they should easily be tagged as completed.
Before the count date, visit your inventory to understand the layout of the store and look for obsolete and damaged items. Make sure that the inventory areas are clean and organized; product are in their proper places and not mixed up. Make sure all items have barcodes if applicable. Look for areas that may not have been considered in the fixture map, such as hold/layaway or merchandise that has fallen behind the display. Review all merchandise that needs to be returned to your vendors. Complete RMA’s and ship back or identify these items for the count. Consider products that you may want to markdown prior to the count to reduce the inventory. You can run category and attribute analysis reports and review Stock Days, Turnover and Return on Inventory Investment numbers to identify products that should be targeted for markdowns.
Best practice tip: Organize product on the shelves, removing damaged items and use discounts and promotions to clear obsolete ones.
To get an accurate count, all sales and movement of inventory must cease. Make sure that all store/warehouse transfers are completed and merchandise has been received into the system. New shipments received should be frozen, and seals should not be broken. Review Open Transfers and Adjustments and make sure they are committed or errored out as appropriate.
Best practice tip: If you can’t freeze receiving, then clearly define a physical not to be counted area for items that have not been received into the inventory.
There are a number of methods available and selecting the one that will work best for your business depends both on your type of inventory and how your merchandise and store are laid out.
Manual count sheets are simply forms to enter the product ID (SKU) and quantity. This method is effective for wall to wall counts using count teams, with one person calling out the SKU, price and count and the other recording the data. This allows you to pair an experienced person as the counter with the less experienced employee to record the information and helps less experienced personnel learn the inventory. The downfall is that there is room for mis-recorded SKU’s and it’s a manual process so more time consuming.
Preprint the count sheet from your POS System and use this for recording the count. The biggest problem is that the form will not follow the logical flow of your merchandise layout. To much time can be spend flipping through pages searching for items. If some items are not included, you are more likely to miss them altogether. However, system generated count sheets are useful in narrower spot counts or warehouse locations where the inventory is well organized. Run an inventory balance report and download it to a CSV file so that you can sort it and prepare the count sheets. Your final count sheets can be imported into the system to adjust your inventory balances; this will generate write-off amounts for you to review before you commit the counts.
Using a portable inventory device can be the most efficient way to take inventory when all items are barcoded. You will not need the two person count team and merchandise can be counted quicker. These devices also automate the reconciliation process so that the store can complete the count quicker and be ready to unfreeze the inventory in less time. The primary hurdle is the expense of the devices. There are two options here; you can use Portable Inventory scanners or any Android phone to scan and count the inventory. The Inventory Manager application can be used to load the data into the system automatically or the data from Multiple devices can be combined into one count using mInventory, mobile inventory management software.
Best practice tip: Use digital tools whenever possible, organize counts in smaller groupings so you can easily recount, if necessary.
Designate a responsible person to monitor and control the distribution and return of the count sheets. If you are using electronic counting, designate one person to monitor and coordinate activities. Use the fixture map to describe the counts.
Best practice tip: Have one person in charge, who is managing the process. Everyone follows their plan.
For accuracy, enough time needs to be available to take the count, complete the count audits and recount as needed. If possible, start early in the day, while all employees are fresh and alert.
Although such a major inventory count is disruptive, resist the urge to focus on speed. The primary goal should be accuracy. Speed will come in time, but an inaccurate count does not provide any value to the store
Best practice tip: With proper planning you have plenty of time, however planning will not eliminate errors from exhaustion.
Even your best counter can make mistakes so instead of blindly adjusting inventory based on a single person’s count, steps can be taken. Have two separate teams conduct the count separately and compare the numbers to determine discrepancies and areas to look further into. Recount all items where discrepancies exist.
Best practice tip: Double count all items, and triple the count the discrepancies
Depending on device/method used, determine that all inventory has been included. Investigate discrepancies and recount as needed. Document explanations. Determine the adjustment amounts. Make necessary system adjustments based on the physical count.
Deeper research into discrepancies can always be completed at a later date – in fact several weeks or months later, but the only time a physical count can be accurately verified is at the time all movement is frozen. So take the time, while you have the staff in place and focused on the inventory count to resolve any count discrepancies.
Once all data has been uploaded into retailcloud, review the potential write-offs and recount any items where the variances are outside the acceptable differences. Check storage areas again for overlooked product.
Best practice tip: Get the count rights, resist getting involved in reconciliation or adjustments until later.
A well planned and organized physical count is the basis of determining and analyzing shrinkage. Without a reliable physical count, analysis of the results will be unproductive. It takes a bit of work to initiate the implementation of the physical count. But, in the end, when inventory is accurate and operations are running smoothly, the attention to detail will be well worth it.
Click here to subscribe to my next post on Cycle Counts
Also See 5 WAYS TO MAKE INVENTORY MANAGEMENT EASY
The sleekly designed Poynt Smart Terminal with it’s built in EMV reader and Interactive Customer Display makes it easy for small retailers to step up from their calculator registers into something that provides them with flexibility and integrations into todays must have retail solutions.
Poynt users of all sizes will have a couple of decisions to make in deciding if Register or Skycraft POS best meets their needs. This post will help navigate the waters and simplify the decision.
Both apps have the ability to create user pages to easily layout items making them easy to find, and both also support line item and order level discounts, coupons and fees, as well as the ability to set tax levels based on the item. Register has a limit of 500 SKUs per catalog so if you have more than that you will need to move up to Skycraft POS which has unlimited SKU’s.
With Skycraft POS in addition to the features mentioned above you also get category management features that allow you to run margin and performance reports by up to 3 classifications and 5 attributes. Leaving lots of room for growth. The inventory management module is also quite comprehensive allowing you to easily identify categories that are impacting your net margins.
There is also a built in CRM list builder app to easily get and launch marketing campaigns, a loyalty program to offer club pricing, discounts on merchandise to your most valuable customers as well as Time & Attendence with time sheet management. These together with Sales Tax Settlement reporting and Barcode Label printing are the most popular features on Skycraft Point of Sale App.
Other benefits of the Skycraft application is that you can add Advance Orders for online ordering with delivery or pick up in Store, you can also connect your Poynt to Windows and Android POS devices on retailcloud and there are phone apps for cycle counting and other inventory functions. You can also connect to retailcloud online and launch an ecommerce store within minutes.
Regardless of which application you select you cant go wrong with your new Poynt Smart Terminal.
If you are not considering using the Poynt to get one view of your transactions, inventory and customers, there are some other apps (most of these features are already included or available in Skycraft POS) you may want to also consider
Let me know if you have any questions or feedbacks on the apps recommended here. You can reach me on twitter @retailmadesimpl or post your comments below
Inventory Management is the heart of retailers effort to manage their assets. It can be disastrous if they are not approached properly. A lot of retailers rely on the tools mainly on their point of sale systems or retail management systems. In some cases point of sale do not provide what they wanted or they tend to rely on other third party tools to manage these assets. You can simply rely on a spreadsheet or a very complex enterprise grade systems which gives tons of options ( a lot of time it comes with increased complexity ) or it can be like the tools which retailcloud provides which balances simplicity and usability.
Ultimately it should focus on
Here are 5 ways to make Inventory Management easy
This is one of the key first step to have a clean inventory. This is important not only for management but for visibility & discovery.
Once you have a good organisation of the product, it is always easy to look into your inventory and sort, filter through your product whichever software or tools you may use.
Right tools are important for the job. Inventory management doesn’t just end with adding or updating product , counting product. So it is important to have the right tool for the job. retailcloud provide various tools on POS, Web and mobile which can be chosen for your convenience . For some mobile may be convenient and it may be desktop for others.
A few examples of tools which may help
It is always good to have good business process tied to your retail management. This can be when an inventory is brought into the location, moved between locations or if you have to account for damages. If you do not have any of these processes or not used to any of these don’t worry we have built workflows right into retailcloud tools so that you don’t have to do the heavy lifting.
Example of a few workflow process are
If you have a custom workflow you can achieve this by leveraging our API’s . Check with us how we can help you to improve your inventory management
It is always good to extra set of eyes to know what is going on with your inventory . The smart way to do is through notifications, alerts and approval management process
Retailers that participated in the 2016 NRSS say that employee/internal theft amounted to 35.8 percent of inventory shrink in 2015. The report also found that the average loss of dishonest employee cases dropped from $1,546.83 to $1,233.77
retailcloud provides various alerts for tools for configuring the alerts at various roles and a permission based feature activation.
In addition to this a more Actionable alerts like below will provide better insights to their inventory
Last but not the least measure your inventory or use tools which provide insights about inventory. Any of the above mentioned ways are not relevant if you don’t measure and have a good idea about how you should sell your existing inventory.
retailcloud provide various tools to get you insights. Some of the amazing tools are
Units Per Transaction (UPT) is a key performance indicator in retail that measures the average number of items a customer buys in a single transaction. It provides insights into customer purchasing behavior, highlighting how effectively a store encourages shoppers to add multiple items to their baskets. A higher UPT indicates a successful upsell or cross-sell strategy, as customers are purchasing more items per visit.
Retailers often track UPT to assess sales associate effectiveness, optimize store layout, and develop promotional tactics aimed at increasing sales volume. Understanding and boosting UPT is crucial for maximizing revenue and improving overall store profitability in the competitive retail landscape. Increasing your units per transaction is often what determines success versus failure for the small to mid size retailer. How best to do this hinges primarily on understanding and engaging with your customers. This article identifies key practices to increase your units per transaction covering different aspects of your interaction with your customers.
Selling more is a direct reflection of you and your staff. Placement and signage are only so effective. The key is engaging with your customers starting with the interaction from your sales personnel on the floor. They are the first point of interaction a customer will have with your business. Besides hiring sales associates with experience and providing training, now they need the tools for retail management solutions. This not only will build the trust and result in additional add ons being purchased but also increase return visits.
Units per transaction (UPT), also known in another name as items per customer (IPC), is a sales especially in the retail sales sector to measure the average number of items that customers are purchasing in any given transaction. The higher the UPT, when the customers purchase more items for every visit. Increasing UPT is an excellent way for a retailer to increase sales using existing traffic.
Units Per Transaction (UPT) is determined by dividing the total quantity of items sold by the total number of transactions.
For example, if a retail store has the following sales data for a week:
Then, UPT = 450 / 75 = 6
This means that, on average, customers buy six items per transaction at this store.
Drop the “Would you like a … (scarf to go with your sweater)”, customer are so tuned to this that they have the “No thanks” formed before you have completed the sentence.
Try suggesting
Notice that these techniques do not ask the customer to buy the product but instead the sales associate is asking if they have tried, noticed, or been told about the item. The phases are conversational and encourage the customer to consider the option brought forth by the sales associate.
Cross-selling, upselling, and recommending add-ons are powerful strategies to enhance the customer’s shopping experience. It’s essential that salespeople are skilled and experienced in making thoughtful suggestions that add value for the customer. These techniques are most effective when a salesperson establishes a genuine connection by approaching and engaging the customer sincerely. Through attentive listening and understanding of the customer’s needs, they can provide tailored recommendations that benefit the customer and improve the overall shopping experience.
This is a prime opportunity to solidify your relationship with the customers. It’s no longer enough to complete the transaction, bag the merchandise and politely say good bye. You have a captive audience from your customer and one final opportunity to increase your units per transaction (UPT)and ensure a repeat customer.
The customer is generally relaxed and impulse items are easier to sell. Your POS may have custom tailored recommended items prompts, similar to your Amazon on line purchasing experience. Ask your retail POS software solutions provider to add this vital feature, if available.
Does your POS has customer history, this provides another opportunity to reach your customer on a personal level. By mentioning recent purchases, the sales associate can remind the customer that they may need to replenish the purchase or have a related product that enhances their experience with the original purchase. This type of personal interaction is reminds customers as to why they still shop in the traditional brick and mortar shops.
Focusing on a particular product line, or area for a week or a month can also help generate add on business. Sales Associates are motivated to recommend these items and the internal contest keeps it fun for the employees. Your POS Solutions should be able to track sales by employee so you can update your employees as the contest runs.
This blog covers a number of techniques to improve your UPT, but wouldn’t it be great to tie it all together with matrix so that you can see how effective these improvements are to your success. Focus on Key Performance Indicators (KPI) to track from a retail store perspective. Your POS System will provide reports and/or a mobile app so that you have immediate access and can tweak your approach to get the desired effect.
These positive sales experiences all hinge on your salespeople being able to build solid customer relationships built on authenticity. Your goal is for your sales associates to be seen as trusted advisors to your customers. Sales isn’t an art, it’s a science. Teach your sales associates the basics and with continued mentoring will tweak and develop their authentic approach. Use the tool provided by your POS system to give your employees access to the knowledge about your customers to further build that relationship.
A customer who is enjoying their experience in your brick and mortar store is easier to upsell and more likely to buy add-ons. That’s what raises your UPT – not promotions and discounts that might increase units sold but destroy overall profitability.
Why do companies do it?
Reducing inventory costs is mostly based on reducing carrying costs. The carrying costs occur when your predicted sales are not in line with the reality and there are too many products left on the shelves in your store. There are simply too much costs related to inventory from costs of capital, to expired costs and handling, storage and counting inventory damage costs. Also costs for rent and electricity must be included as well.
The Well-Known Notion
The notion that in order to keep your inventory costs low, you need to keep your inventory count low as well is a well-known notion. It seems quite logical, but in reality, with use of a POS software and smart, feature-rich inventory management software you can manage to do it.
How lower Inventory and inventory costs
The first and most useful tip is to make an efficient plan. Then a strategic plan to move your slow mowing inventory is a must. Using the best inventory software can be of great help in achieving this.
Another way to lower costs is to not liquidate all of the items or to plan the liquidation better.
Liquidation is not always the best option as it can decrease revenues significantly.
Of course the most effective way in reducing inventory costs is establishing and effect inventory systems like just in time inventory. But this is not possible for all businesses. The businesses that can assure quick orders from their vendors, can significantly reduce inventory costs and keep the inventory count high.
Another interesting option is used by several popular entrepreneurs. Their companies is keeping the inventory count high and if they have many leftovers they don’t do liquidations, but instead donate the products to different charities. They later use that for creating good PR and public image, and are also doing a good deed.
Using POS software you can easily track and manage your inventory. So, at last, you can always have high inventory count when you expect huge number of sales, when you achieve a slower period, you can easily manage the inventory with your inventory management software and reduce costs.
Final Thoughts
No matter the POS software you are using, having all possible features for inventory management can be of great help. Simply, you need to find out what works best for your business. Whether it is a JIT system, or managing your inventory in various ways during different periods of the year. One thing is certain, reducing the inventory costs while keeping your inventory count high will increase your profits, because your costs will be lower and your sales will be higher.
Gone are the days that the businesses relied on conventional cash registers; cloud-based POS systems has taken the industry by storm. No matter whether you run a retail store or a restaurant, a POS system can increase the productivity significantly. Other than playing just the role of a point of sales, these systems are capable of generating vital reports for a business. But what such reports can you run on your POS system, you ask?
No matter what the type of your business is, the ultimate goal should be sales. Having a perfectly generated, detailed sales report is highly beneficial for a business. In fact, such facility should be a prerequisite of any POS system. A comprehensive sales report should emphasize sufficient information enabling you to draw a clear picture about your business. Which items make most profits for your business, which period you experience a boost in your business and which items needs to be eliminated from your product list are some of the facts you can determine referring a sales report. Below is a list of facts that can be found in a sales report.
Although sales are the bread and butter of a business, the amount of actual payments determines the amount of money you have made during a particular period. Again, POS can help you to track critical information like cash flow, credit card payments and other information that affects your payments. Such report is a great way to prevent employee theft, errors in billing, preferred payment methods of customers and determine the discounts applied on sales. POS payment reports include information such as:
Integrating CRM software to a POS is a very effective way to monitor information pertaining to important customer activities. You will be able to monitor repeat customers, develop specifically targeted marketing campaigns and develop customer loyalty programs. Modern CRM software programs are capable of capturing the customer details real-time and update the databases accordingly. Standard CRM reports include information like:
Modern POS systems come with inventory management software too. This is a great way to manage and maintain adequate stocks to be compatible with the sales volume. A report generated via this inventory management software emphasizes information like the quantities, values of the inventory and items that you are running low. Those who need in-depth reports can rely on third-party software integration to the POS.
Having understood the benefits these reports can bring to your business, it is a wise business owner to use an up-to-date, hi-end POS and rectify the potential mishaps. What you spend on a POS as a business owner is a wise investment that associated both short and long term benefits.
A point of sale system is the lifeline of small business operations. A Point of Sale system used to be a very expensive and serious undertaking for a business to get this sort of system. But today that has changed thanks to advances in technology almost everyone can acquire and set up their POS systems very quickly. Today, small businesses don’t have to depend on the stand alone terminals to handle point of sale transactions. There is software in the market that can turn your computer or tablet into a point of sale terminal and it is easy and most of this software is free. Remember that having a good point of sale system means that you can get better insights into your business, and it can also help you keep track of what your customers prefer which in turn will help you boost sales magnificently. The best POS system should be affordable and easy to use. It should be integrated such that it can do more than just accept payments and process sales.
A good POS system must have an inventory management system or an inventory program. This will help you take a good look at your stock anytime you need it without having to go to the store. It should record how much of the stock is in the store and depending on the sales data; it should be able to estimate the period which that stock will last. Anytime the stock runs low, the point of sales system should alert you that you need to acquire more stock as soon as possible. The inventory management system should be up to date all the time to avoid issues of failure. Remember if an inventory management system fails, there is a risk of your retail business going out of stock without your knowledge. For the small business retailer, the inventory management system is not complicated and it is very easy to keep up with at all times.
Your retail business should always be safe stock wise if you are using a point of sale management system. The inventory program should look at the historical data of sales and use it to predict when a low stock condition might hit your retail business. It should also be able to create orders for replenishment on low stock conditions. Remember the point of sale might not be so complex as to send an order to the supplier directly. However, it will print out an order request for you asking you to order more stock before a particular time.
A retail business is best run by a point of sale management system. Don’t let your business run on the traditional stand-alone terminals. A POS system is a tool that will increase your sales revenue. Also based on the kind of system it is and how integrated the system is, it should be able to help you market the business increasing the number of customers.
If you would like to know more about these product updates for May 2016 and how they can help your business, please reach out to support@retailcloud.com.
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All inventory must be included in the counting procedures at least once during the year. A popular method to schedule the counts is the ABC method. Under this method, the inventory items are designated based on value or number of inventory turns as A items, B items, or C items.
The A items are considered most critical and are counted frequently throughout the year. Typically these are inventory items that turn over often or have high value. The C items typically have less movement or carry a lower value and therefore may be included in the count only once or twice during the year. Accordingly, the C items are expected to carry a lower risk of material differences. Any given inventory count includes a large number of A items, some B items and very few C items.
Whatever counting method is used, the frequency of inventory counts is important. The counting process ideally occurs on a daily basis — weekly at a minimum.
Placing controls on the cycle count process will help maintain the integrity of the counting process and the number of times inventory items are counted during a given year. If a scheduled item is not counted, or is swapped for an easy-to-count item or an item that is known to possess an accurate quantity, the validity of the sample is compromised. As a result, any issues residing beneath the surface like stock shortages, unidentified spoilage or unrecorded transactions could go undetected, greatly undermining the goals of the cycle counting program.
The business should also perform blind counts to restrict the ability to make changes to the counted results. Blind counts are performed without knowledge of the quantity that is listed in the accounting records. If blind counts are not performed, the person performing the count may see the system quantity on the count sheet and simply match its count to the system quantity to avoid the hassle and additional time of investigating variances. By exercising discipline in performing blind counts, this risk is virtually eliminated. Some companies even use a double-blind counting system, which involves a second count team that recounts, on a blind basis, certain components or locations of inventory.
Also critical to an effective cycle counting program is the development and implementation of a tolerance threshold for investigating count variances. A company should document count differences in both quantities and dollar amounts, and the differences should be measured on their gross (absolute) value. To be useful, the tolerance threshold should not be too high. If many individual differences are uncovered but the aggregate net quantity or dollar variance is minimal, an underlying issue is still causing the inventory variances. The fact that a net difference is low could simply be the fortunate result of the particular sample that was selected for counting. A sample on a different day could produce dramatically different results if the error frequency is similar but the differences are consistent instead of netting out to a small difference
For example, a company counts 100 inventory items on one day and finds differences for 10 of the items. Some of the differences are overstated and some understated, so the net dollar difference is a small amount. The next day, again the company counts 100 inventory items and again finds differences for 10 of the items. This time, however, the differences for all 10 items are directionally consistent that is, they are all either overstated or all understated and therefore the overall difference is more significant.
This phenomenon — where the key underlying problem is the error rate — highlights the importance of evaluating the dollar differences in terms of their absolute value instead of net value. If a company can eventually achieve a variance rate of less than 1%, the system is likely to be accomplishing the desired objective. However, results and expectations can vary among businesses.
When implementing a tolerance threshold for count variances, it is important that the investigation process occur as designed and that the count discrepancy resolution process be documented well. The business should determine error thresholds that automatically trigger both a second count by a different individual and an investigation of the cause of the error. An experienced separate individual should perform any second counts the program requires. Any differences that remain unreconciled after the second count and, after examining shipping and receiving activity, should be adjusted in the system.
If problematic trends become obvious, management might determine that it is necessary to flag various locations or types of products and perform additional counts on these items. In some cases, it might be possible to increase test-count coverage by changing the characteristics in the cycle counting program (for example, changing a B item to an A item, or providing for certain flagged items to be selected on a more frequent basis).
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Have the benefits on cycle counting from our last blog convinced you of the value cycle counting can bring to your business? If so, it’s time to implement your cycle counting program for optimal inventory management. Keep the following tips in mind as you develop your cycle counting plans:
Cycle Counting is an inventory management technique used to maintain accurate stock levels by counting a subset of inventory items on a regular, rotating basis. Unlike a full inventory audit, which involves counting all items at once, cycle counting focuses on smaller, manageable sections, ensuring ongoing accuracy without disrupting operations. This method helps identify and resolve discrepancies, reduce stockouts or overstocking, and improve overall inventory control. Cycle counting can be performed using various strategies, such as ABC analysis, where high-value or high-turnover items are counted more frequently than less critical ones. It is widely used in warehouses and retail environments to streamline inventory management and enhance operational efficiency.
Cycle Counting Inventory is an inventory management method where a portion of the inventory is counted regularly, rather than performing a full count all at once. The key idea behind cycle counting is to verify and maintain inventory accuracy through frequent checks on different segments of stock. This process is conducted on a rotating basis, with different items being counted at set intervals, depending on factors like their importance or turnover rate.
For example, high-value or fast-moving items might be counted more often, while slower-moving or less critical items are checked less frequently. Cycle counting helps businesses identify and correct inventory discrepancies promptly, improving stock accuracy, reducing the risk of stockouts or overstocking, and minimizing disruptions to daily operations. It is an efficient way to manage inventory while avoiding the disruptions of a full physical count.
Inventory cycle counts offer several key benefits for businesses aiming to maintain accurate stock levels and optimize operations. By regularly counting a portion of inventory, cycle counting helps identify and correct discrepancies in real-time, reducing the risk of stockouts or overstocking. This method allows for continuous inventory accuracy without the need for costly and disruptive full physical counts. It also enables companies to maintain smoother operations, as cycle counting can be integrated into daily workflows without causing significant downtime. Lets analyse more benefits of inventory cycle counts:
Cycle counts can be done during down-time and do not necessitate closing or disrupting regular business. As cycle counts are for smaller subsets of inventory, use those quiet times to tackle the count (early one morning per week or if you never see a living soul in the shop between 1 pm and 3 pm). In addition, problems and discrepancies are more easily spotted and corrected. This saves you labor costs and hours of time.
When you implement ongoing cycle counts, you’re forced to continuously assess your inventory. By having smaller check-ins, focusing on a subset of inventory, your buying decisions are more informed and targeted. You can focus on just one area of your business, so use the opportunity to not only count, but make decisions about that subset of your business.
By shortening the time between counts, you are decreasing the amount of time an error could have been made. It will also help you identify loss patterns and even have a more precise idea of when a theft occurred.
Inventory can often be the most frustrating part of owning a retail business. Implementing smaller cycle counts allows your entire team to see your stock accuracy as a vital part of your business. Now you can transfer merchandise between stores to optimizing the inventory mix at each store, having the stock available for sales of exactly what the customers are looking for. Employees and customers will feel more confident about the business decisions you’re making.
Real time accurate visibility into your inventory allows for greater productivity. For example, if a customer wants a particular item, you can quickly and easily locate it, without having to purchase another item and wasting your customer’s time and losing their confidence.
Understanding product movement can also enhance your sales. For example, if a product line performs better than expected, you can expand your supply of those items.
6. It gives you an excuse to clean up
When you’re rifling through your merchandise more often, it provides a perfect opportunity to dust things off and keep your displays sharp.
In conclusion, inventory cycle counts offer significant advantages for businesses looking to maintain accurate and efficient inventory management. By regularly monitoring inventory, companies can quickly identify and address discrepancies, minimizing the risks of stockouts, overstocking, and inventory errors. Cycle counting also improves operational efficiency by eliminating the need for disruptive full physical counts, enabling smoother day-to-day operations. With more reliable data, businesses can make better decisions regarding stock levels, forecasting, and overall inventory planning. Ultimately, cycle counting enhances inventory accuracy, reduces operational costs, and contributes to more informed, data-driven business strategies.
Inventory cycle counting is the process of counting physical inventory in small subsets, in a specific location. It is an ongoing process of validating the accuracy of inventory as you move through your inventory allowing you to focus on a subset of inventory.
Cycle counts are less disruptive to daily operations and can be tailored to focus on items with higher value, higher movement volume, or that are critical to business processes. This can occur on a daily or weekly basis, depending on your preferences. Cycle counting ensures that every item in your inventory is counted at least several times a year.
Inventory Manager can help companies easily manage their inventory audit process by simplifying the way inventory is counted. If the inventory data is updated in smaller doses on a regular basis, there is no need for lengthy physical counts. Companies who perform cycle counts rarely need to shut down to perform physical counts. It’s simply too expensive to shut down for the day. If cycle counts are regularly performed, inventory numbers will always reflect well managed data, allowing for accurate inventory decisions. More on benefits of Cycle Counts here.
So ditch the annual inventory count and opt for something a little less taxing – ongoing cycle counts.
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Benefits of adopting advanced inventory control:
• Increased cash reserve
• Improved cash flow
• Safeguard against stock obsolesce
• Increase complimentary items, increasing units per transaction
• Track order to delivery to pricing variances
Optimizing your inventory levels serves many purposes, the most important being that it will increase cash reserves and improve cash flow, safeguard against stock obsolesce and allow you to extend your offerings to include complementary products.
Reorder level reporting will allow retailers to order just enough to meet their anticipated demands over a shorter frequency and can generate and transmit purchase orders to vendors. A reduction of your order frequency from Quarterly to Monthly can free up capital equal to as much as two thirds of your inventory investment.
Using the integrated purchase order function completes the cycle from creating the purchase order to receiving merchandise and printing barcode labels. Reports are provided which show cost variances and unfilled orders to keep you informed of potential issues. In addition Periodic Sales also reflect the pending PO’s making review your stock and replenishment levels a snap.
Some other things that you can do to generate better inventory control is to increase the segments or attributes that are associated with each SKU. Using attributes you can make sure you have the proper style and color mix and using segments will allow you to make sure that you have you have both a good substitute and complementary mix. Having a good product mix is key in increasing your units per transaction. Customer Activity reporting will also provide you valuable information at a customer level in predicting demand on new products.
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