Stock management and optimisation are critical to any merchant or materials supplier. A generic, off-the-shelf stock control system isn’t likely to be able to offer you the flexibility and complexity that you will need as a timber or builders’ merchant, or supplier of any measured construction materials.
Even in 2022, some merchants are still having to close branches on a semi-regular basis to carry out manual stocktakes, and the day-to-day figures being reported in many merchant businesses simply do not reflect the reality of the stockholding situation.
With supply chain issues and volatile price fluctuations all part of the new normal, it’s time for merchants to take back control over their stock management.
Here are 8 ways that merchants can take back control of their stock management, and avoid the risks of using outdated or legacy techniques and technologies.
Stock profile. What you stock and where you stock it is critical, so use the data in your stock control system to identify the products that are moving quickly and those which are languishing. Using metrics like stock turn and analysing profitability helps you to make more of the right opportunities and stop doing things that aren’t working.
Stock profitability. Some stock could actually be costing you more to range than it’s actually worth. Make sure you aren’t keeping things in stock that are costing you money, and make sure your stock is working for you. Use tech tools like margin protection and credit control to minimise risks and reduce human when calculating discounts, and standard, average and most recent cost price tracking to mitigate the impact of market price fluctuation.
Stock taking. Manual stock staking is not just time-consuming, it also costs money in lost revenue from closed branches. It can also be frustratingly futile – no sooner have you got your figures up to date, they’re off track again as soon as trading resumes or online orders are received. Keeping on top of your stock every day helps your service proposition, efficiency and reliability, and means you can keep trading all year round without undue impact on staff. Cloud inventory management systems like Merchanter ensure your stock figures are up to date all the time, so you always know what’s where without having to hit the pause button.
Stock certification. If you supply construction materials like timber or steel, you’ll know just how important it is to keep track of the right certification – but also how much time that can take. Using your digital ERP system to file and store the certification records will save time, reduce error and ensure you’re compliant with sustainability measures.
Stock information. It’s becoming more and more important for merchants to ensure their product data is up to date and accurate, not just for internal systems but to feed into other platforms like websites and eCommerce systems. Using a digital system will make it easier to integrate with PIMs and use standardised data models like ETIM, keeping compliant with market standards on consumer education while making life much easier for your business.
Stock requirement. Keeping the right stock on hand is not just about predicting what you’ll need when – it also helps you track which suppliers are most reliable so you can make smart choices about replenishment partners. It’s also vital to monitor the fluctuating costs of materials so you understand real-cost of replenishment, and gives you insight into which customers are worthwhile selling to when you’ve got limited stock. Information really is money when it comes to understanding stock!
Stock movement. Having a clear overview of what stock you can where means you can offer better availability to your customers but also build in better efficiency in your logistics and route planning. It also means your click and collect service is reliable and not over-promised, but that you also have a better chance of being able to meet customer requests and going that (sometimes literal) extra mile for them.
Stock confidence. This one is unique to Merchanter and we’re mighty proud of it. In a nutshell, it’s a metric that lets you see how accurate your stockholding stats are at any one time, using a complex algorithm that takes into account all the usual factors which account for stock erosion and error in reporting.
If you’d like to see how easy Merchanter is for improving stock control and how it might be able to help your merchant business, why not try our 30 day free online demo so you can explore at your own pace?