In the fast-paced world of retail, efficiency and organization are key to success. To keep your company competitive, it is important to consider what tools can help you continue to grow without being spread too thin. There are several common issues that retailers face as their company grows, in this blog we will focus on covering the solutions to these issues.
5 Most Common Issues Retailers Face
1). Inefficient Inventory Management: Inventory practices that were once effective become inefficient as a company’s warehouses, product, demand, and overall size increase. This problem only continues to increase the larger the business gets.
2). Inventory Visibility: Large warehouses can have thousands of assorted products and different ways to organize and store them. Over time it's only realistic to lose track of where certain items are, and as products come and go, reorganizing can lead you to forget where certain items are.
3). Overstocking: This can lead to overspending and wasting of money and resources. Overstocked goods, especially products that are seasonal or tech-related, may also become outdated and difficult to sell.
4). Understocking: This can take its toll too as customers who can't purchase what they want the first time are less likely to return.
5). Manual processing: Especially with demand forecasting, it is not realistic to keep up and run your business to its max potential. In this case, it can take tools that you have not had experience with. Learning how to use these tools can have a dramatic impact on your business success.
Solution to the Most Common Problems in Retail
Most top retailers have been able to manage common issues like overstocking, understocking, and inventory visibility using inventory management software. These include software like Odoo, Oracle and Zoho, each with their own strengths and capabilities.
Odoo is a SaaS software solution designed to combine every component of business management into one app to simplify business processes. The system includes a suite of inventory management and shipping specific tools. With its user-friendly interface and robust features set at an affordable price point, Odoo empowers retail companies to manage themselves effectively in the modern day, ensuring that products are stocked, tracked, and delivered with precision. Whether you are a small boutique or a large chain, Odoo is intended to be a scalable platform as it adapts to your unique needs, making it an asset in the competitive retail landscape.
In addition, choosing an effective Odoo partner can give you an edge as they can personalize the platform to your specific needs and can help you garner a firm understanding of the software if technology is not your strong suit. You do not ever have to feel alone or overwhelmed with any kind of digital transformation; we, Pragmatic, have helped 150+ businesses of all kinds of industries make the switch for the better, and we would be thrilled to help you as well.
Software and partners are an investment in your company, so before you decide if Odoo is right for you, it is important to take a close look at all the components that make Odoo excellent at increasing your management potential in your retail company.
1. Stay In Stock
If a client is interested in purchasing a certain product, it’s important to have it in stock. Keeping your inventory full is a must to ensure smooth business operation. Keeping track of item availability manually can take a large amount of time. Odoo’s tool set to take care of this issue consists of min-max rules, MTO and master production schedule. Odoo can also be set to purchase shipments the second they begin to run low in stock and set up automatic communication with your vendors.
As with all components of Odoo, this tool set can be modified and adapted, with the help of an Odoo partner, to operate as precisely as you would like.
Min-max rules: These rules create a reordering process so that an order is automatically created for low-stock items whenever they reach a certain amount.
-Min Quantity: a minimum number of items you would like in stock at any given time.
-Max Quantity: The maximum number of items. If stock reaches the minimum quantity, the purchase order is made to bring your stock back up to the set maximum quantity.
MTO: Make to order is a form of restocking that involves generating a preliminary order for a product whenever a sales order is placed for it. A request for quotation (RFQ) or manufacturing order is written based on if the product comes from a vendor or is manufactured.
MPS: A master production schedule serves as a manual planning tool. Its purpose is to maintain a consistent supply of products and items. It helps set up manufacturing orders (MOs) and purchase orders (POs) based on predicted product amount. By factoring in confirmed MOs, POs, and demand predictions, the MPS facilitates consistent product replenishment.
2. Manage Shipments and Storage