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

Key Leadership Skills Learned in 2020 and Why We Should Keep Some! thumbnail Key Leadership Skills Learned in 2020 and Why We Should Keep Some! In this episode of Industry Matters, we talk with Lindy Tentinger, President of VGM Forbin and Miriam Lieber, of Lieber Consulting to discuss what leadership looked like in 2020 and key lessons learned that we should keep as we transition to 'back to normal.' Complex Rehab Legislative Update thumbnail Complex Rehab Legislative Update Legislation is always a hot topic in CRT and this year is no different. We have 5 major issues that we are working: Stopping June 30 Cuts to CRT Manual Wheelchair Accessories, Establishing Coverage for Power Seat Elevation and Power Standing System, Securing Permanent Remote Service and Telehealth Options for CRT, Establishing a Medicare Separate Benefit Category for CRT, State Medicaid Cuts, and the Right to Repair legislation that is currently being introduced in several states. Cost Effective Wound Care Management Practices thumbnail Cost Effective Wound Care Management Practices Director of VGM Wound Care, Heather Trumm talks with vendor partner, Dermarite about cost effective wound management without compromising the value of the products. The Longevity Revolution: Getting Housing Ready for Seniors to Age In Place thumbnail The Longevity Revolution: Getting Housing Ready for Seniors to Age In Place Allowing seniors to age in place has become more important. However, homes are not necessarily built for aging adults. VGM Live at Home is working with HomesRenewed Coalition on legislation allowing tax incentives for homeowners to update their homes. VGM Announces Schedule for 2021 Heartland Conference thumbnail VGM Announces Schedule for 2021 Heartland Conference VGM has announced the schedule for its annual Heartland Conference, taking place Sept. 13-15, 2021. Along with traditional in-person presentations, the conference will also feature a virtual component. VGM & Associates Releases Latest Playbook on Business Development thumbnail VGM & Associates Releases Latest Playbook on Business Development VGM & Associates has released their second playbook of 2021, “VGM Playbook: Growing Your Business in Today's Environment.” AffloVest Case Study with Advanced Medical DME thumbnail AffloVest Case Study with Advanced Medical DME In this episode of Industry Matters VGM's Midwest Regional Account Manager, Jay Kopriva talks with VGM Vendor partner, International Bio Physics and VGM Member, Advanced Medical DME about a study they conducted and the astounding results they found. House Introduces Medicare O&P Patient Centered Care Act thumbnail House Introduces Medicare O&P Patient Centered Care Act The House of Representatives recently introduced H.R. 1990, the Medicare Orthotics and Prosthetics Patient-Centered Care Act.