Use Your POS Software Wisely
In these difficult times, cutting expenses is the right thing to do. If you are a retailer and are cutting inventory across the board, what a mistake. Hopefully you have a retail stock ledger and open to buy planning built into your POS software. When the customer comes in and can’t find a fast turning item, they will go to a competitor and may never come back. Do your department, class comparatives and narrow the items you need to cut by the percentage of inventory and the revenue produced. You can then make a decision from your POS software min/max levels and vendor comparatives. If the items are re-orderable year round, cut your lead time and if a seasonal item, order mostly basics that you know will give you a quick sell through.
You are trying to run a first class business and you do not need negative marketing that signals you could be in trouble. At this point however you are no longer running a retail business that is trying to provide the best service or provide the basics that are needed to be considered a top of the line retail store by the regular customers. If no one is reviewing your inventory needs properly, there will be lost revenue and lost customers. Doing this effectively through your POS software reporting by all relevant categories is the best way to lower inventories and increase turns which of course should be the goal.