Does Inventory System Software Really Save Retailers Money?
Businesses that rely on manual inventory tracking systems generally must hire and pay workers to maintain the systems. For small businesses, companies that have 50 or fewer employees and no more than two business locations, may only need to hire two workers to maintain a manual system. In this case, the pressure point is minimal.
However, the chances of worker errors could be high. These errors could cost business owners thousands of dollars, especially if their stores run out of popular items midway through a major sale. Let a business run out of popular items midway through a major sale and customers could spread negative stories about the businesses. They might tell their colleagues, relatives and friends that they had to wait two weeks before “hot items” were in stock.
Relief for business owners didn’t come en masse until computerized inventory system software was developed. In addition to saving business owners payroll expenses by eliminating the need for entrepreneurs to recruit and hire workers to manually record and track inventory, inventory system software saves entrepreneurs money in other ways.
Wikipedia shares that, “An inventory control system may be used to automate an order fulfillment process.” Furthermore, “Such a system contains a list of orders to be received, and then prompts workers to pick the necessary items, and provides them with packaging and shipping.”
As previously shared, inventory system software saves retailers and other business owners lost sales. Although monetary amounts might not readily be associated with disgruntled or unsatisfied workers, inventory system software developed by NCR Counterpoint and other vendors have the capability to ensure customers are satisfied.
This is possible because the systems are designed to allow for a more seamless customer checkout experience. Since the systems work with traditional, more elaborate and mobile cash management equipment, the systems can be used to ring up customer purchases using touch screens. Scanners read bar codes and transfer the data to inventory tracking databases in a matter of seconds.
Complete details for each purchase that every customer makes are captured by the systems. The data can be used to analyze sales trends and customer buying behaviors. For example, business owners can use the data to find out the best times of year to run clothing, electronics or food sales.
Customers’ favorite colors, sizes and product styles can also be tracked with the systems. This data can be used to develop targeted customer mailings. In the communications products that come in customer’s favorite colors, styles and sizes can be highlighted. To keep customers from exceeding their credit limits, the systems can include those limits for loyal and regular customers.
Other ways the systems help to save and make entrepreneurs money include tracking receivables, entering cash receipts and printing customer statements. If used with customer loyalty programs, the systems could be used to reward customers by sending them a birthday present or a free gift after they spend a certain amount of money during a quarter or a year at a store. This, in turn, could increase customer satisfaction which could lead to more customer sales.
Category: Business
