Stocktaking can so often be thought of as just numbers and tallies in a spreadsheet or on a clipboard, or perhaps something you ‘have to’ do each year, when in reality it can give you a rich and broad range of information that can help you to not only understand current stock levels but also increase efficiency and profitability.
Let’s look at five ways we help our clients to increase their profits by making sure they’re always in the know when it comes to their stock…
Identify the current causes of stock loss
It is estimated that the average UK retail business will lose as much as 2% of its stock to a range of causes and this can account for as much as 21% of profit margins. Identifying these causes – whether they be from shoplifting, employee theft, returns and refunds or any other number of sources – is therefore key to increasing your profitability.
Having worked with retailers for more than 30 years we’re able to quickly identify where stock is being lost and report this to senior management to investigate and resolve.
If you’ve ordered stock that you subsequently can’t sell it can have a significant impact on your cash flow. If you then have to sell that stock at a reduced price and margin it can further impact your profits.
So how can stocktaking help you with this and ensure that stock wastage is kept to a minimum? In essence the better you understand your current stock levels and sales, the better placed you are to make decisions about what is selling and in which store.
We work with retailers across the UK to help them understand where their stock currently stands in each of their specific locations; they can then make sure that stock levels are maintained at the level of demand.
Understanding supply and demand
The most profitable retail businesses have the items people want to buy available when they want to buy them. This is exactly what effective stocktaking should enable you to do.
When you combine an understanding of where and how much stock is being lost with when and where people are wanting to buy it, you have the ultimate recipe to maximise the revenue potential of your rolling stock. That is exactly what we’re striving for when we work with each of our clients.
Give greater clarity
Ultimately we all want the best and most informed information on which to make decisions and this is what an effective stock take should provide you with. We don’t just provide our clients with facts and figures, we want to enable them to make better and more informed decisions and this is exactly why many of them continue to use us for many years.
For more information on our specialist retail stocktaking services please give our team a call on +44 (0)1637 874609.