How To Cope With A Low Inventory Level
Gone are the days when manufacturers could stockpile vast amounts of raw materials, pile work-in-process on the shop floor, and stockpile finished products in warehouses. The old methods are now producing inconsistent results, not to mention long lead times and high costs. The trend is for companies to respond rapidly to consumers’ demands while maintaining a low inventory level. The majority of companies aim for a high inventory (or stock) turnover rate. So, if you find your inventory turnover ratio to be poor relative to your rivals, this blog would help you find out what’s going on. Use inventory management tools from an ERP system Small businesses often start their inventory management with spreadsheets. They can upgrade to a simple inventory management software when the business expands, allowing for better ordering and monitoring of goods. Switching to an ERP inventory management will also take you a long way, enabling you to handle the supply chain and order-to-cash processes in a single system. If you’re a small and medium retailer, install a barcode scanning system to process the incoming inventory level and data from cash registers and point-of-sale systems. In case you’re moving thousands of orders per day, the Radio Frequency Systems (RFIDs), ensures efficiency by automating warehouse control from start to finish. Improve the efficiency of the inventory management system by automating Manual inventory control is no longer efficient. This is because human is always prone to error which might lead to disgruntled customers and possibly lost revenue. In addition, manual operation is often time-consuming and a waste of valuable human resources. This demanding job can be handled much more accurately and efficiently with the correct inventory ERP method. Inventory levels are monitored and updated in real-time since all related buying and sales order data is in the same system. Hence if a customer calls to ask if a product is in stock, you can quickly respond with a check. Use data analytics to improve inventory management With real-time inventory data and analytics at your fingertips, you can generate reliable product and revenue forecasts in seconds. You can use this information to forecast consumer demand and adjust your inventory accordingly. There are many advantages of predictive data analytics, including: Reducing inventory expenditure to increase cash flow Providing more accurate product availability to improve customer service Predicting the appropriate inventory level to meet demand Limiting discounting or scrapping of old stock to increase profit margins You will market your company more efficiently to particular consumer groups if you have reliable revenue forecasts. This can be accomplished by a tailored advertisement campaign. The tactic guarantees that the right people are aware of your company at the right time. Another advantage is the originality of your data analytics. This ensures you can fine-tune your plan for each campaign you run and evolve your design at each point. It also ascertains your available inventory meets your customer base’s demand.
Tips To Increase Repeat Purchase
A repeat purchase is a purchase made by a customer who has bought from your store before. Data has shown that selling to recurrent customers is much simpler than finding new ones. Yet many online stores invest a lot of money to draw customers who may or may not be interested in their products. Working on the customer loyalty program is the best-tested technique for increasing sales. Encourage those that have already purchased from you to do so again, and you will almost certainly have a lifelong customer. Here’s how to do it. Achieve trust Many customers visit your shop in search of a particular item. Unfortunately, they don’t have much of an incentive to return after purchasing the piece. In fact, recurrent customers are your shop’s best mate. Although they do not make large transactions, their income would eventually surpass large one-time buyers. Repeat customers can spend 67% more money on your goods than first-time visitors. The question is, how can they be persuaded to return? The first step is to earn your clients’ confidence. Implementing a loyalty program will help you build trust. It’s a tried-and-true method of encouraging repeat sales, and it’s something that all the major brands do. As a treat, you might give your customers a card that gives them a discount on their third purchase. The loyalty program will not only facilitate repeat purchases but will also increase the average transaction size. Provide personalized customer support Personalized customer care entails identifying and providing tailored services to the customers’ specific needs and desires. The relationship between your company and the customers should be constantly strengthened. By creating personalized solutions to your customers’ problems, you are moving closer to them. Find out what they want and need, then give them items that complement the one they already have to incentivize a repeat purchase. For example, we provide maintenance services to our customers who hire us to create their websites. If you want to keep things easy, give them sparkling drinks when they buy chips. Also remember to be available to your customers 24 hours a day, seven days a week. Make a loyalty program for your customers Let’s pretend you’re trying to choose between two sandwich shops for lunch. They’re both tasty and reasonably priced, but one gives you a free sandwich for every six you buy, and you’ve got two more to go before you get the next freebie. Doesn’t that make your decision a lot easier? Incentives drive people. Thus the prospect of receiving something in exchange for choosing your brand can always sway their decision in your favor. Customer loyalty schemes come in a variety of shapes and sizes. For example, you can use a points system that offers a freebie after a certain number of transactions, such as sandwich shops. Or you can create levels where consumers can unlock certain benefits depending on the number or amount of purchases they make. Send out marketing newsletters daily Discounts are good. But a hundred commercial-incentivized emails might be intrusive. One of the best ways to earn their confidence is to give them emails that contain helpful information or amusing stories in addition to emails that include products and promotions. For example, you can set up a workflow to send customers who haven’t been in touch with your store a reminder with a personal discount. This not only shows that you care about individual customers but also encourages them to make a repeat purchase.
