It is known that evaluating the business regularly is important to assure that you are following the right track towards success. Pursuing the systematic method for storing, obtaining products and services is vital.
And this can only be achieved with accurate inventory management methods. Inventory management is crucial to the bottom line as the main investment that will remain as an asset until the product selling.
Achieving accurate inventory management is one of the general bases for commercial success, though, it is complicated as well. It is complex to decide which stocks are needed at what time without convoluting the overstock and risk of products running out.
Inventory managed with the proper strategy will balance the minimal storage needs and fast-moving goods. Even if you are an owner of a large enterprise and are finding the stock in several countries, the principles for inventory management will remain the same.
So, for enhancing the profits of your salon business, you need to manage the inventory on a priority basis. But, it is significant to understand inventory management first?
Inventory Management is a factor of supply chain management that covers non-capitalized assets, stock item and inventory of your salon. It handles the flow of goods from the salon to the warehouse and from the manufacturer to the Salon Point of Sale (POS).
Inventory management is based on detailed records of where products or units enter and exit warehouses and POS.
If the execution of inventory management is done efficiently, the salon lessens the cost of having more inventory by boosting the sales. Good inventory management can assist you to track your inventory to facilitate this process in real-time.
With efficient use of inventory management, the right products can be obtained at the right quantity and the product that is out of stock can be avoided. It also gives you the surety that the products are sold promptly to avoid products damaged and worn out.
This does not consume too much money on products that are taking up space in the stockroom or warehouse.
With poor inventory management, you would be having dead stocks in the warehouse that can give your business loss. This even results in losing a reputation of running out of the important items.
Why do you need to optimize the product lines?
If your inventory approach involved seeing how low your product sales are and checking the shelves to order the favourite product, then without any doubt, you need to optimize the product offerings.
The salons that do not effectively manage the inventory could notice that some of the products stay on the shelve for sixty days or more. And shows that the turnover is not constant as it has to be.
The right approach to build your inventory is to target the single product line than stocking different products from several vendors. By providing a retail line of some brand produces a consistency level for customers in your salon.
If you a newbie in the salon business and has just established the inventory management, then you should initiate with a one-month supply of salon products and in retail products. Weekly scheduling of orders would fill in the stocks as you sell or utilize them.
Using the appropriate inventory management from the salon software should:
- Assists in forecast demand
- Tracks the inventory in the real-time
- Enhance the cash flow, lessens the cash flow and accelerates the business bottom line
- Avoids extra stocks and excess raw materials
- Avoids production and product shortages
- Accessible on every device for inventory analysis easiness
- Usable right from salon POS
- Provides seamless and quick bar code scanning fro speed up the intake
- Optimizes warehouse organization and eminent employee time
- Allow for tracking inventory and multiplication management in different warehouses and different locations.
As now we have seen that using the Salonist Software can give you immense benefits but only if the inventory has managed effectively. It makes things very easier and smooth. Let’s check out the five strategies that can manage the salon of your business.
Manage the salon business inventory with the five strategies
1. Real-time stock control
With salon and spa management software you can have full coverage on the stock. It lets you check the stock availability, (what is in the stock) and you can sell accordingly.
For example, Salonist software automates the re-ordering procedure to assure appropriate stock levels. It lessens the over-stock on slow-selling, over-stocking, and high-value products.
It examines built-in measures like stock turn measures for boosting the warehouse effectiveness and easily handles the cash-flow. An inventory management system serves as a backbone of managing the salon’s sales. So, it is vital is to execute every step crucially to attain prosperous results.
2. Stock tracking at multiple locations
You can make inventory management an easy task with salon software and lets you track the inventory in different locations. With the growth and expansion of your business, it is important to examine the inventory levels in every location.
Accessing this helps you to make the best utilization of resources and avoid an accumulation of products in one location. You can check every location and the inventory it contains and discovers which location has a specific product or part.
Easy examination of inventory sales, quantity, parts, and valuation with seasonal trends discover is also possible with salon software. Convert inventory into a simple and intuitive process with multi-location inventory tracking.
3. Expiry data control
The life of any product varies greatly and plays an important role in inventory management. The salons that are committed to the distribution or production of products should manage the product’s expiration inclusively.
With the salon software, you can predict the expiry date of the products and lessens their losses accordingly.
The software demonstrates the date to consume the product in an effective, healthy and safe means. Real-time information about the salon’s products and the expiration date can be known. This lets you make easy decision-making in the salon business.
Salon software examines the expiry date of the product when it enters the warehouse. Adopts first in first out (FIFO) approach to assures that the products with early expiry date leave the warehouse first. And provides a notification each time when the product is nearly to expire.
4. Inventory Reporting
The salon software lets you examine several reports to study the best performing item, sales trends with accurate inventory reporting characteristics. Using a great salon software enables you to define required improvements of how to boost the salon’s sales.
Beauty Salon Point of Sale inventory reporting gives benefits to your sales performance. And, lets you settle the level of stock on hand and shows the costs of goods sold.
With inventory reporting, you can enjoy the real-time stock visibility and increases the control. You can develop better decisions and understands the margins of the products with appropriate profit inventory reporting.
5. Stock Inventory as per Purchasing Orders
Efficient purchasing involves buying the right quality and right quantity of products at the best possible price from the best supplier at the right time. Achieving the essential measures accurately should be the aim of every salon owner.
With a well-managed purchasing system, you can maintain and achieve a healthy supply relationship. It lets you enhance the inventory management and cash flow with an enhancement of business performance.
So, it is significant to source and differentiate several suppliers and analyze which one is best priced and can fulfil the purchasing requirements.
To fully stock your salon shelves, implementing the above strategies is a real investment. So, keep your inventory well stoked by using inventory management software.
All you need is to be extra careful regarding the availability of products, avoid spoilage and extra spending on stocks. Evaluate your salon business effectively to enjoy extra interests.
Let us know about your comments for inventory optimization in the comment section below. Any suggestions and queries are appreciated. Thank you!