Add Inventory Management to Your “To-Do List”
Fail to acknowledge the value of inventory management protocol in a restaurant, and you can wind up spending your hard-earned profit on food that spoils and winds up in the dumpster, not on the plate. The same is true for bar owners.
Slack inventory management can leave your bottles dry when business peaks, or can have you paying for the wrong brands and categories that only gather dust on the shelf. Worse still, if bar inventory becomes too unmanageable, you could run afoul of state alcohol regulations and wind up in legal trouble. Businesses with alcohol licenses typically have to account for every bottle of booze they sell - and if they cannot keep track of their liquor inventory, they may fail an audit.
The Importance of Inventory Management
Even Walmart, a giant when it comes to expert and agile inventory management, is not immune. About five years ago, according to an article in Forbes Magazine, Walmart lost a whopping $3 billion due to out-of-stock products. At first glance, many business owners would assume that the source of the problem was not ordering enough merchandise to keep up with sales. Or you might suspect that vendors were at fault because of manufacturing, distribution, or shipping delays. But one of the most interesting lessons that can be learned from Wal-Mart’s problems was that it lost all that money because of out-of-stock merchandise while it simultaneously grew its inventory at a rate that outpaced sales. The inventory was there, Bloomberg News reported, but it just wasn’t where employees could get their hands on it fast enough.
Once you get your head around that puzzle it becomes glaringly obvious that no company, especially a small one with limited resources, can afford to do without excellent software that also encompasses the inventory workflow. You may have inventory in your back room or warehouse. But if your inventory logs and records are not easily accessible, identifiable, and ready to move, then, simply having inventory won’t save you from losing sales.
Plus, while your employees are scrambling around to try to locate merchandise on the back end, customer service on the front end - at the all-important point of sale - suffers. Keep a customer waiting long enough, especially when the final outcome is that you must tell them their item is out of stock, and you risk losing that customer to your nearest competitor.
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The Solution - Inventory Management Software
Fortunately, there are many new and innovative software applications - including apps you can download and use from mobile devices - to eliminate all of your inventory and stocking headaches. You can find affordable programs designed as weekly to-do lists and online to-do lists that can have you managing inventory at multiple locations with less effort than you are now spending to manage just one place of business. With inventory management software, like Zip Inventory or Zip Ordering by Hubworks, you can track ordering, delivery confirmations, product categories, and barcodes, as well as management of merchandise once it’s inside your facility. Get it off the truck, on the shelf, and into your customer’s hands without wasting time or mismanaging your vital and valuable inventory or human resource assets. Best of all, do it at a price you can afford with apps that are easy-as-pie to download and use.
For more information about the importance of inventory management, check out our "Inventory Turnover Ratio | All You Need to Know" article also on the Hubworks Blog, and if you have any questions, please feel free to reach out to us here at Hubworks!