The holiday shopping season presents an excellent window of opportunity for businesses to boost their sales volumes. With the total sales to hit $136B during this holiday season, retailers are prepping up to rev up their sales. It is essential to plan your inventory ahead of time to ensure that you can meet the demands of the holiday season. We’ve put together some inventory best practices to help you boost your sales.
Best practices for holiday inventory management
Run inventory audits
Before preparing your inventory for the holiday rush, it is critical to ensure accurate inventory records. A complete cycle count done in advance can help you identify discrepancies between your inventory system and physical stock and, thereby, plan your inventory needs accurately.
Forecast demand for the holiday season
When it comes to forecasting inventory demand, it is no secret that data is your best pal. Your sales history can give your compelling insights into what lies ahead this season. Forecasting inventory demand accurately enables you to serve the additional demand effortlessly while mitigating the risks of overstock.
Keep your suppliers in the loop
A common mistake businesses make when planning their holiday season inventory is not involving their suppliers in the planning process. If you are expecting an increase in demand over the holiday period, it is vital to let your vendors know about your predicted order volumes in advance. By engaging with your suppliers effectively, you can avoid potential stockouts and bottlenecks.
Identify slow-moving / obselete products
Eliminating slow-moving and obsolete stock is an essential step towards optimizing your inventory and improving your cash flow. The holiday season is the best time of the year to get rid of obsolete and slow-moving products. An aged inventory report can help you quickly identify slow-moving products and convert them to cash through promotions and clearance sales.
Set stock alerts
While forecasting can help you deal with the increase in demand during the busy season, it is crucial to have safety measures in place to avoid potential stockouts. Evaluating your safety stock levels and setting up automated alerts can help you replenish the stock promptly and avoid losing business.
Implement inventory management
Whether you run a single-channel or omnichannel business, keeping track of your inventory is essential. Thankfully, an inventory management software like AccelGrid can help you automate inventory planning and minimize the risks of stockouts or over-ordering.
Conclusion
For many businesses, the holiday season contributes 40% to their entire annual revenue. Therefore, this time of year is crucial for the success of any small business. You are more likely to drive more revenue this holiday season by following some of the best practices listed above. Introducing a cloud-based inventory management solution can give you confidence that your business can handle the increase in demand during the holiday season.
