One of the Seven Wastes of Lean Manufacturing or Mudas is inventory. It does not add value to the paying customer.
Inventory costs the business money because it takes up space, requires packaging, and needs to be transported around. It also has the risk of being damaged, pilfered or even obsolete while waiting to be sold.
Unfortunately, we cannot do away with inventory. Retail business is a balance of having the products on hand to meet urgent customer demands while reducing idle assets of either raw materials or finished goods.
How do you find the right balance? Easy. Looking at the history of your sales and understanding the seasonality of your business it the right place to start. Optimize your inventory by using the Product Trend Report, Imonggo’s latest feature. Product Trends, guides you on determining your product’s minimum quantity and maximum quantity.
For example, by looking at the product trend for Three Cheese on Flat Bread and Salmon and Cream Cheese Roll, I know I should have at least 11 pieces of Thee Cheese on Flat Bread and 22 pieces of the Salmon and Cream Cheese roll at any time because my sales never go below that. On the other hand, my inventory should not exceed 79 for Salmon and Cream Cheese Roll and 95 for Three Cheese on Flat Bread.
You can set the minimum and maximum quantity for each product by editing it or you can upload an Excel File in csv format for mass edit.
Once you have setup the minimum and maximum quantity for each product, you can use the Inventory dashboard to see what you have too little or too much.
You can also look at your inventory list and filter by Low Inventory or Over Inventory.
Signup for a free account free account today and optimize inventory by using the Product Trend Report.