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Stock Control

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 Refrigerated items such as packaged foods products require you to do special handling.

- It also requires sometimes for you to prominently mark on your label something like “Perishable - Keep Under Refrigeration.” 

- It often requires close monitoring of these items once they pass a certain date. Then they must be transferred to a secondary location so they can be sold at a discount price. Then this has to be monitored as after a certain time they often require to be tossed. 

So what can you do about it?

What we recommend is that you identified and mark these refrigerated items. 

This is so you just by looking at the item on the screen know that these items may require special handling.

You’d do it like this:

Go to stock maintenance in your point of sale software -> Edit marked them as in the red box.

 

 

Just another example of how our software has useful items that you can use.

 

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- Still manually tracking inventory and sales?

- Are you trying to decide what your sellers are? 

- Need to know how many you need of an item?

Try this. It will take you one second.

Go to stock maintenance. 

Call up an item and then press Summary.

Here you get a detailed historical figure in real-time for any item for the last 24 months on that stock item. View the historical details of the stock item. See its sales trends over the past 24 months. It is excellent for reordering. 

Having our POS Software will make it much easier for you to provide your clients with what they want when they want it.

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The unfortunate fact is that we all have old stock sitting in the shop. As a rule, they say that you should look into cull the bottom 20% of your stock. 

You can look at the sales by GMROI, profit and numbers as I showed earlier. But you can also look at those products that are just sitting on the shelf. This is very easy to do and will take you only a second to do.

Go to register reports> Stock> Old Stock on hand.

Now pick a department and get a list of when this stock arrived and the quantity you have on hand.  I am sure you will find some are very old; this will be costing you by just sitting there.

Now please decide what to do with this stock.

Note: You can also run this report by a supplier, which sometimes is handy as some suppliers will allow you to return old stock.

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As I stated, GRMOI is one of the foundations of modern inventory management today. This is why we have supplied our clients with this powerful tool. 

Hopefully, now, you have been trying out Gross Margin Return on Inventory (GMROI) in your shop. If not, look at my post a few days ago and only then come back to this post.

What GMROI incorporates in one figure, stock turns and profit. It allows you to focus on margins and turnovers.

The significant advantage of GMROI 

1) It is consistent and widely used. Other systems, such as Direct Product Analysis (DDP), need you to make assumptions. They take much longer to work out. Different people using it come out with other figures. So their analysis will give various figures depending on who runs the report.  I will show you DDP in our software in another post soon because it is also excellent. 

With GMROI, everyone is looking at the same figure.

2) It is quick and easy to use. All you have to do is run a report. The computer can do the calculation.

GMROI is simple.

3) It allows you to compare widely different products quickly.  

Using it, you can compare every item in the shop in seconds.

4) Overstocking is highlighted.

This is one of its best functions so it will cut your stock levels.

Let us discuss the problems.

1) A minor product can have a terrific GMROI, but its effect on the shop can be zero. For example, if a product that turns over a lot has a decent margin, it is pretty useless if it made you a profit of $2/week. It would not even pay the handling and rent that it takes up.

So you are not going to get out of using our profit reports, which need to be considered.

2) If you understock, you can often drive the stock turns up, so giving you higher GMROI. Yet that will cost you sales.

High GMROI is not always good.

3) It does not consider other costs, e.g. handling and shipping costs or suppliers terms.  


4) It does not take into account that often you need a range of products. For example, people may come to your shop because they know you have an extensive range. If all you have is one title or brand, they may decide to go elsewhere else. After all, they can buy in a supermarket which also has a common brand. 

Range often sells.

5) It may show you problems but not what you can do to fix the problem. There may be only so many you can sell. There may be good reasons why your low margin items are low: price-sensitive, set by suppliers, etc.

Often its conclusions are not actionable. 

As a rule, I recommend looking at the extremes of the GMROI, both the high and low results, first.  Once used to GMROI, you will find it an indispensable tool.

Enjoy and let me know how it goes.

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Thanks for sharing this blog. Restaurant Management can be made easy by simply installing your restaurant software. Handling various aspects of your restaurant like the front desk, kitchen, menu updates, and table allocations can be done easily.

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Current figures, well figures based on the last survey done in August 2019, in Australia and New Zealand Retail Crime Survey reported total crime-related retail losses to 0.92% of revenue.

If you want to read the report yourself, you need to register here.

Looking at the figure from many of my clients, I think it's higher. But as a first-level approximation, it's a start.  Put in your turnover and get a figure.

It is impossible to check everything all the time. So  I decided to put together a point list to determine which items to checked more often. 

Do it by department and give them a score based on 1=Low   2=Average   3=High. Then add them up for each department and look at the high scores.

Then divide it up the departments that need to check by priority.

1) Number of items you have. People tend to try to steal things that you have many of as they think you will not notice a missing one. Give priority to those departments you are well stocked.

2) Easy to count. If it is quick and easy to count, why not do so?

3) How often does it get touched. Every time someone touches it, it is open to temptation. This is why I guess items that are regularly purchased tend to be stolen more.

4) Stock that has a history of going missing. If you have items that go missing a lot in a count, that is a sign that something is wrong. Move it.

5) Small, easy to grab items. 

6) How valuable is it? If it's valuable, it is worth looking into it. I found it unexpected that low-value products will go missing almost as much as high priced items. 

7) Anything to do with computers, cosmetics, and sex items tends to be high on the list. 

Give this a try. If you have any good ideas on how to change the list, let me know.

If we get a lot of interest, we will look to automate this process.

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Here is how by using real-time inventory management. This is so you can get many such benefits, such as having the optimal amount of stock in your shop.

Say a rep is in your shop or on the phone, and you want to discuss your inventory! They have a good overview of their product overall but what they need to know is your shop situation? The odds are that they like you have much to do, so you need to find the answers immediately. 

It would also be best if you showed that you are in control and know what is happening. If a rep thinks they have a person who does not know what is going on, they can use and will use you to dump their unwanted stock. 

Go to your stock performance report. You will find it here.

Go to register reports>Suppliers>Suppliers sales trend, see the arrow in green

 

Supplier sales trend menu

Now put in them and set a date a year ago.

A report like this pops out.

Supplier sales trend report

Let us go through it.

Marked with a green arrow is a negative stock item. This is a sign that your stock quantities are not wholly right.

Look at the arrow in red, you have 19 of this item now, but you never sell any of them. It is a worry. Ask what happened.

Also, as you go down, you will see an item with a blue arrow. You have none in the shop. See how you have no stock, but you have sold heaps of these items.

Where is this going?

Retailers can get ahead of the competition by using real-time. If they do, it will enhance their efficiency and increase sales.

 

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This is a question that I get a bit. How do you do, I get real-time stock warning monitoring?

The problem: 

With so many different lines in a shop, that it is almost impossible to know which items are starting to run out or have run out. 

No doubt, you will know when a customer asks you, but it's often too late by then. 

Answer:

It is simple, you can check in seconds your stock levels, and here is how! 

Go to reports > stock > Sold Out or Selling Out Stock Lines

 

 


Note if some of the stock comes out with stock on hand figure in negative. It shows you that items that are not probably entered into your system, so it's a check here as well.

So I would recommend running this report regularly. It will alert you to both out of stock situations and errors in invoicing.

 

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This is a step by step your google like stock search.

In the Cash Register, press on the search button - see red arrow

Out pops out the following search page.

 

Now first look at the bottom of this image where you will see ? [x] searchtext. This is your advanced search.

Now imagine that a customer is looking for a particular book but does not know the title exactly.  He knows that in the title, it has the word "roof" in it.

So you are looking for a book that has the word "roof" in the title.

? [x] searchtext

So its

? - because you do not know

B - as its a book

ROOF - that is what is known.

So I put in 

?B ROOF 

Now see what I got in the image above.

All titles with roof, plus several other details like the on hand and the retail price, etc. is displayed.

Now click on the one you want.

Enjoy!



 

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Today with all these automatic imports and transfers, it is likely that errors are in your GST rates in your stock. Sometimes these are due to rounding errors which can cause some weird figures. Often they are attributable to mistakes made by you or your suppliers. Sometimes it is due to some GST ruling which may or may not apply to you. In any case, you need to examine these rates. 

Here is a quick way of doing it, that will take you seconds to do.

It requires either excel or you having OpenOffice, which is free and available here

If you have one of these installed, go to:- Cash register> Register reports > Stock > Details Listing (Excel) Although it is faster to check if you do all departments at once many prefer to do it by one department at a time. Now you will get this report. 


Now where the red arrow is, click on "Sort & Filter". Now click where the blue arrow is for the "Tax rate" and click all the rates that are not 0% or 10%. Now review these products. For many of you, it pays to do it again only for 0% tax items and check them too. Omit, I find this particularly useful is in tracking down GST errors.

Try and let me know if you have problems. 


 

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Now, the stock levels in many shops are a mess. The reality is that the world is moving on and you need your stock right e.g. summer clothes in winter do not sell well. 

This needs to be addressed. 

I suggest that you look at a report that contains the sales of the stock items and the stock on hand figure. Here is one such report, the top N stock report which you can find in register reports here.
 

 

Put in the last two months and ten million-selling lines to include everything.


Now you will get a report, that has current sales figures and stock on hand.

 

 

Now you need to review these items ASAP

 

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Nice post

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