Inventory Management and Retail Store Experience

Published in Member Communities on December 24, 2018

From the Desk of Rob Baumhover, Director, Retail Services, VGM Retail

Providers looking to drive their businesses forward must form operational strategies in the following areas: Marketing, Product and Store Experience. These pieces are the core of every business. To perform at an optimum level, each play an important role towards success.

To highlight just one aspect, I would like to focus on the inventory management piece, which falls under the product core concept. In my career, I have often seen owners take a back seat with managing inventory correctly. Unfortunately, the severity of holding too much or too little inventory can have a negative impact on the bottom line of a business.

For instance, by having too much inventory on-hand, a store and stockroom can feel like it is bulging at the seams, taking a direct hit to a store’s overall experience. Due to consumer value placed on store experience, this can unfavorably affect a business and a customer’s likelihood to shop a store. In addition, too much stock can cause inefficiencies and hold up excess dollars in non-performing merchandise. Hence, giving owners a reason to lay awake at night.

The latter, holding too little inventory, can be just as harmful. Not housing enough inventory will make stores look and feel bare, maybe even feel like the store is going out of business. Again, causing the overall experience to be poor. Customers might also find themselves frustrated that the item(s) they need are consistently out-of-stock, which can cause a lost sale and further deter a customer’s future business to your store. Outside of these issues, owners might find themselves with ordering issues that cause pricey shipping costs and unnecessary expense. Consequently creating another bad situation.

So, how can Providers manage their inventory more effectively?

  1. Check and analyze sales reports weekly (at minimum), allowing employees to maintain a read on the store and customer buying trends.
  2. Use the findings from sales reports to set an ordering schedule for each product category and/or vendor partner.
  3. Properly set minimum and maximum amounts to carry for each product.
  4. Repeat and repeat. Managers cannot just do this process once, but must look at inventory management as the ongoing project that it is.

Providers follow these steps and you too can eliminate the discrepancies of the issues above!

Click here for more retail resources from VGM.


comments powered by Disqus

From Our Experts

VGM Wound Care and Permobil Discuss the Importance of Seated Posture thumbnail VGM Wound Care and Permobil Discuss the Importance of Seated Posture In this episode of industry matters Director of Wound Care, Heather Trumm, talks with Stacey Mullis, Director of Clinical Marketing at Permobil, where “Every person has the right to have his or her disability compensated as far as possible by aids with the same technical standard as those we all use in our daily lives.” Heather and Stacy are going to dive right into dive into something that is often overlooked, and that is seated posture in wound care. Key Marketing Priorities for HME Providers in 2021 thumbnail Key Marketing Priorities for HME Providers in 2021 Now that 2020 is officially in the rearview mirror, it's time to get strategic in 2021 with resources, priorities, and investments. From a marketing perspective, healthcare delivery models have undoubtedly changed. Lindy Tentinger discusses key marketing priorities that can help your company achieve its business goals and set it up for continued success. CRT Telehealth Update from NCART thumbnail CRT Telehealth Update from NCART NCART and the CRT Remote Services Consortium announced their continued efforts to secure a permanent telehealth option for people with disabilities who require complex rehab technology (CRT). Navigating Lead Generation Safely thumbnail Navigating Lead Generation Safely Lead-generating companies are prevalent in the industry and are legal, but it is essential that providers understand exactly what service they will provide and how they will do it. Member Spotlight: Leo Levine, Owner, Merrick Surgical Supplies & Home Care thumbnail Member Spotlight: Leo Levine, Owner, Merrick Surgical Supplies & Home Care Meet Leo Levine, owner of Merrick Surgical Supplies & Home Care! A VGM member since 2019, Leo has taken what he's learned during his time as a member and used it to help him grow his business. Is Medicare Advantage Too Good to be True? thumbnail Is Medicare Advantage Too Good to be True? In a recent HME News article, Dan Fedor provides three important items for CRT providers to know about Medicare Advantage plans. What Healthcare at Home Means for DMEPOS thumbnail What Healthcare at Home Means for DMEPOS This year has been one of the most taxing years in history for everyone. We have all been keeping safe at home, which has caused the need for DMEPOS to be even more critical. As we close out the year, it's good to reflect really what does healthcare at home mean for our industry? An Inside Look with Clint, Episode 3: Mark Higley and the Importance of Benchmarking thumbnail An Inside Look with Clint, Episode 3: Mark Higley and the Importance of Benchmarking Clint talks with Mark Higley about the importance of benchmarking. Each year VGM partners with HME News to provide and then analyze an industry benchmark survey.