Like every successful commercial enterprise, managing inventory is important in running a business productively and efficiently. Similarly, successful schools should emulate their business counterparts during this regard.
Why is it important to manage inventory properly? When a school maintains an inventory, the school makes a choice of buying products at a fixed price with the aim of selling them at a marked-up price from the buy price. The objective is to move these products quickly in order that the school can earn profit and recoup the expenses of shopping for the merchandise. They can identify fast paced stocks and replenish them immediately. Failure to account inventory could mean loss of income for the school and will be prevented in the least cost.
In order to avoid the scenario of getting slow moving inventory, here are 5 ideas to effectively manage your school’s inventory:
1. Ensure all products are tagged and assigned a singular number.
Accounting for all of the things in your inventory is crucial because this enables your school’s store admin to remember of products you’ve got (or don’t have). Not having proper and efficient Inventory Management System makes it harder to sell long standing products and can sit longer on the rear shelves to be forgotten. In order to stop this, confirm all products are tagged and assigned a singular number.
Many POS systems like Paatham have built-in Inventory Management System that will help with the task of assigning a unique number for each product with the use of a compatible barcode scanner. Whenever shipments arrive, confirm that products are scanned and properly tagged.
2. Perform regular inventory audits
Conducting inventory audits regularly is differently to manage your school’s inventory effectively. This is the time once you and your staff discover discrepancies within the report as compared with the particular products on your shelves and rectify them on the spot. The longer you or your store manager defer and postpone initiating inventory audits, the more likely errors will occur thereby making it harder for everybody to reconcile what products you actually have versus what you’ve got on paper.
3. Keep accurate records and be consistent
As a result of performing regular inventory audits, you and your staff now have accurate records you’ll be confident with, which allows you to run much needed reports for financial analysis as well as give you a real-time snapshot of what products you have on hand, what products needs replenishing, what products need selling, and so on. On the recording part, confirm to stay consistent especially when categorizing or classifying your items. This way, you can account for the products in the same category. For example, under Food, you’ll have a subcategory for light snacks and under it, you’ll include products like potato chips or cookies. This seems tedious initially but organizing your product category meticulously will assist you when it’s time to try and do your inventory accounting.
4. Generate reports regularly
Similar to other POS software, Paatham allows you to run reports that will help your store maximize profits while minimizing costs. Some of the reports include:
Projecting future product replenishment consistent with past sales (by assuming modest or conservative projections)
Identifying your store’s product bestsellers vs. product duds and organizing them accordingly. You can decide what proportion discount to supply for those products that are shelved the longest or, as a final resort, write them off as a loss if you can’t unload/sell them.
Analyzing your store’s financial statements by running a profit/loss report and sales revenues report. These reports are very helpful in evaluating whether your school’s store is profitable or not, who among your staff had the foremost sales over a given period, and what were the top three major expenses for your school’s store.
5. Backup data in case of emergency
It’s not only important for your school’s store to stay accurate records but equally as important, to keep a copy the information just in case of emergency. If you would like to keep paper records, also include digital versions of these same records on external drives and/or back them up within the cloud. In case of Paatham, it has its own servers and backup the stored data nightly.
The importance of managing your school’s inventory effectively cannot be overstated enough because having a well-run store inventory equates to a successful and profitable school store. Having the right tools such as Paatham online system can help you keep track and manage your products efficiently. Check out our website and try our demo. We’d love to hear from you!