Running a business is a challenging sailing process as you will encounter several challenges that will negatively impact operations. According to Moniepoint, about 50% of businesses fail in their first year, and 95% of SMEs in the first five years. Most times, the cause is due to data inconsistency, inefficient distribution, and control processes across the SMEs’ multiple stores.
One solution to these challenges is inventory management but how do you implement it and get results? This article gives you a detailed guide to growing your multistore business with inventory management.
Understanding Multistore Inventory Management
Your action to grow your business with inventory management requires you to understand what multistore inventory management is for a start. Multistore inventory management involves keeping track of business operations across several stores from one central location to improve efficiency.
It’s a lot different from a single-store inventory system as distance, more customers and higher stock levels come into play. Multi-store inventory requires a sophisticated approach to its management which will help maintain and improve efficiency. Implementing a centralized multi-store inventory management system helps you streamline operations bringing benefits.
Common Challenges in Multistore Inventory Management
Multistore inventory management is complex due to the solution it brings to the major challenges that multiple stores face. Some of these challenges include inventory discrepancies creating a mismatch between items recorded in inventory and those on the shelves. Deadsttock, understock, and stockout issues are also common with inconsistent inventory management.
Another setback that your business might encounter is tracking supply and operational report issues across multiple stores in different locations. Pairing these issues with the challenges of stocking makes up a complicated negative impact that pushes business progress backward.
Manual inventory management is also inefficient in solving these challenges which is why optimal multistore inventory management is the best solution.
Benefits of Effective Multistore Inventory Management
The benefits of implementing multistore inventory management to grow your business are simple and that is resolving the challenges you experience. In broader terms, multistore inventory management starts by reducing discrepancies and increasing accuracy when it comes to stock details. Your shelf and inventory management stock details match better and are more accurate across all the locations you operate.
Stock accuracy and reduced discrepancies simply mean you know which products are running low and which are available. This information chains up to knowing the demand for each product, helping you create an efficient timeline for stocking them. All these mean better decision-making, allowing you to plan, prepare for every situation and streamline operations.
Key Features of an Effective Multistore Inventory Management Solution
Inventory management offers so many benefits but certain key features qualify it as a great solution for SMEs to use. Some of the features that can help grow your multistore business with inventory management are:
Centralized Dashboard
An effective multistore inventory management solution should have a centralized dashboard giving you multi-channel access. It is essential to organize operations and get access to the tools you need all in one place. A centralized dashboard brings all these important tools to one place simplifying the process.
E-Commerce Integrations
Businesses need e-commerce integrations to receive payments, especially for SMEs focusing on online sales to customers. The integration of POS systems and e-commerce platforms facilitates efficient payments across multi-stores both online and offline.
User-Friendly Interface
Another key feature that a multistore inventory management solution should have is a user-friendly interface. Regardless of how great a solution is, it won’t be considered or used if you don’t know how to navigate it, especially for business. A user-friendly interface helps you complete operations faster as the software learning curve becomes less steep.
Advanced Analytics Tools
Optimal analysis improves business operations and facilitates better decision making and this is necessary for effective inventory management software. A software that offers detailed analytic and reporting tools will always be preferred over one that doesnt. The reason is simple, You get more accurate results in terms of stock and plan your business strategies faster.
Automated Systems
The last key feature that a multistore inventory management system needs to have is optimal automation of processes. It is a feature that greatly affects restocking which might be either replenishing low stock or transferring to branch stores. The automation is required to match the stock levels of each branch to the centralized inventory and facilitate tracking.
Steps to Implement an Inventory Management Solution for Multistore Retailers
Inventory management doesn’t spring up and bring you results from thin air just by thinking it up or getting software. There are steps that you should take to implement it which will grow your business into a seamless and efficient SME. Here are the steps that you should implement to grow your multi-store business with inventory management:
Access Inventory Management Practices
The first step to implementing an effective inventory management solution is to access the system you currently use for your business. During the assessment, you identify the pain points making your operations inefficient and compare them with an efficient practice.
Once you have these listed out, you can now move to the next step of selecting an inventory management software.
Choose an Inventory Management Software
Picking out an inventory management software should not pose any challenge but we have ironed out the details in this article. LumiBusiness Inventory management software is the IMS software of choice for businesses in Nigeria because of its many benefits.
You can check out our article on the 3 best cloud-based inventory management business solutions for a start. It is tailored for Nigerian businesses so you don’t have to worry about compatibility due to location or business model.
Staff Training and System Setup
The next step is to get your staff up to speed with the new software that you are introducing into the company’s operations. Your staffs need to know how to navigate the software to the maximum and get the best results that boost your business. Remember that you aim to grow your multistore with inventory management and this means training staff across all stores.
Integrate Solution with Existing Systems
Integrating your solution with the existing systems you use comes next after staff training and system setup are complete. You are not starting from scratch but migrating your existing process onto the new system to make it operational. The integration spans matching and compiling every detail of each branch store down to the product details during the process.
Your payment system is also not left out as the software will match your register to collate purchases and supplies. It’s an essential integration that makes analysis easier for your business decision-making timelines.
Monitor and Optimize Continuously
It’s done, your inventory management solution is all set up and ready to be operational, giving you great results. However, there is one step remaining and that is to monitor the process and optimize it continuously.
The reason for this is that variables exist in business that can impact your operations and monitoring is required. Ensure you keep a look out for these variables by continuously monitoring and optimizing your inventory management system.
Tips for Maximizing the Benefits of Multistore Inventory Management
Looking for more tips that can help you maximize the benefits that you get from using multistore inventory management solutions? Here are some that you should keep in mind:
- Update your inventory records and maintain the optimal status
- Implore staff across all active stores to adopt the system
- Plan and organize your inventory optimally by utilizing data analytics
- Conduct audits, reports, and reconciliations regularly
- Keep up with the Software updates
Congratulations, you now know what multistore inventory management is and the benefits that it brings to your business. You are not far from taking your business up several notches and scaling up to exceed your business goal. What is the next step for you to take?
Need an inventory management system to manage your multi-store business in Nigeria? LumiBusiness helps businesses like yours across diverse verticals to manage their operations and to scale.