Grocers and convenience store owners face similar problems in terms of inventory management, as the goods sold by these establishments typically include items that have much shorter shelf life duration than other retailers. Mismanaged inventory, particularly with time-sensitive items, can cause significant increases in overhead for these merchants. Grocery and convenience store proprietors need software that allows them to easily view and control inventory as it traverses the path from supplier to customer. Therefore, software providers who can create solutions for automating inventory management with custom software to accurately monitor the inventory management functions of sales forecasting, inventory control, loss prevention, and inventory replenishment have an opportunity to stand out in the inventory management software market.
Sales forecasting is important to all businesses, but to a grocer or convenience store owner, the ability to predict future sales based on existing sales trends is paramount to ensuring stock of each item is high enough to meet demand without inventory loss due to expired goods. Traditionally, retailers in this space would make inventory procurement predictions based on subjective values and guesswork.
Automating this process by tying inventory management software to the point of sale to automatically account for each item as it is sold allows these proprietors to view real time analytics and predict when orders should be placed and how much of each item must be ordered to satisfy demand.
Automated & Scheduled Stock Replenishment
To further automate inventory functions, grocery and convenience stores employ computer assisted replenishing systems. Most inventory done manually is labor intensive and leaves room for human error. Automated replenishing systems generate purchase orders off real-time and historical data to reduce labor costs and improve order accuracy. Knowing what and when to stock reduces inventory carrying costs, damages, and inventory loss due to expiration of goods.
To function to the highest capacity, this type of software must integrate seamlessly with the point of sale software and business intelligence software. Additionally, the system must include functions to set rules for purchasing including minimum stock allowed, maximum stock allowed, and timing for replenishment. When a rule is triggered the system must be able to alert managers using messaging modules when an item falls to minimum stocking levels. Using sales and forecasting data, the program will automatically generate Economic Order Quantities (EOQ) of units an entity should add to inventory. Additionally, the program will consolidate purchasing orders for multiple items from a single vendor and can be overseen manually to allow for quantity override and one-click ordering.
Hardware Integration for Accurate Counting and Monitoring of Stock on Hand
Another attractive feature for a robust inventory management solution is the capacity to seamlessly integrate with the latest inventory control devices including Radio Frequency (RFID), barcode, and QR code scanners.This allows for greater accuracy in accounting for stock on hand by reducing human error. When the scanner data is integrated with the inventory management platform, business owners can keep real-time, accurate data on inventory levels, actual sales, and inventory loss.
Inventory management systems can be offered modularly from an overall ERP system. ERP systems will help tie together all the applications grocery and convenient stores use to manage business including human capital, supply chain, procurement, sales, CRM, and accounting functions. Offering theses modular platforms on the cloud creates affordable technology solutions. Software-as-a-Service (SaaS) deployment are popular services for technology as it is easier for users to deploy, access, and upgrade.
Automated inventory control for grocery and convenience stores is crucial to their bottom line. When dealing with perishables they need to accurately account for optimal stock levels. Over stocking leads to expired and discounted products while under stocking leads to a loss of potential profits and decreased customer experience. Providing entities with a robust and intuitive software solution to inventory management can gain big profits for a software provider looking to penetrate the market.
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Chetu's Retail team implements solutions for the Retail industry. Chetu differentiates itself in providing industry specific expertise combined with its low cost, high productivity model. You can find more information about the portfolio of our Retail experience at: https://www.chetu.com/retail-it-solutions.php
Chetu was incorporated in 2000 and is headquartered in Florida. We deliver World-Class Software Development Solutions serving entrepreneurs to Fortune 500 clients. Our services include process and systems design, package implementation, custom development, business intelligence and reporting, systems integration, as well as testing, maintenance and support. Chetu's expertise spans across the entire IT spectrum.
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