Get a Grip
By Mark Brock
Take Charge of Your Business with an Inventory Control System
A productive inventory control system provides the information you need to make the right decisions and raise revenues.
"Inventory control software gives you a much better understanding of your business as a whole," said Lester Lowe, manager at C and M Liquors in Gary, Ind. "As a retailer, especially if you have been in the business for some time, it is easy to assume you are doing a certain amount of business. But when you have an inventory control system, you know exactly what business you are doing."
Inventory control systems include comprehensive packages with real-time inventory control, purchase order systems, check writing and customer purchase histories. All these features improve your knowledge of your store and customers, and raise your profit margins.
Real-Time Inventory
Knowing your store's inventory at any point during the day, week or month can keep you ahead of the game when deciding what items to stock and in what amounts.
"Inventory control is a critical function of any business," said Jim Sphall, vice president of Applejack Wine and Spirits in Wheat Ridge, Colo. "If you don't have inventory control, you have lost control of your overall business."
Sphall uses Innovative Computer Solutions' Control Plus system to track inventory from the moment it comes into the store until it leaves.
"I analyze two different things," Sphall said. "First, I analyze what we have in stock. The system tells how much we have at any point in time, be it that day or for that week. Then it tells me the product history. Using the current inventory and the history, you may want to change your ordering habits a little bit."
For example, Sphall says, a retailer might check his or her inventory and find that one remaining bottle of a product has sat on the shelf for a long time. The retailer might decide not to carry that item any longer. But if a retailer sees that five cases of that product were sold in the last two days, he or she may decide to increase his or her order of that product.
"Using those two factors helps you make that decision," Sphall said.
Buyers at Hi-Time Wine Cellars in Costa Mesa, Calif., have found their system's notes feature useful.
"We can make notes in the program as to when the product was released, what kind of allocation we had and if we have had to limit the amount of purchase to a single customer," said owner Diana Hurst. "You can't remember all that information. But with the system, it is right at the fingertips of the sales staff."
Customer Service
Inventory control programs also include a customer history function that can help the store market its products and increase customer loyalty.
"The system allows you to input data on what the customers buy and you can use that information to keep them informed of new arrivals," Hurst said. "If a customer calls us and wants to refer back to things they have bought in the past or a party we have catered, we can look up the information and tell them what they bought even up to two years ago."
Sales staff call up the inventory of a specific product and let the customer know over the phone if it is available.
"We also use this customer history for our monthly newsletter," Hurst said. "We can put the information on a disk and send it to our mailing house. It saves us time, paper and money."
The customer history feature also can be used for promotions of specific products, such as a particular single-malt Scotch. Customers who buy this product on a regular basis can be notified of the promotion by mail or phone to get them back into the store.
Choosing the right inventory control system can be one of the biggest investments a retailer can make to improve business. As a tool for increasing revenue, it's an investment well worth making.