Top 10 Tips for Grocery Inventory Management

Top 10 Tips for Grocery Inventory Management

1. Properly Organize Stocked Inventory: This often overlooked step is one of the easiest to take towards improving your grocery inventory management and avoiding dead inventory due to expiration. As far as your back storage area goes, simply place the most frequently picked items in the most easily accessible locations and label shelves carefully to make things easy on your staff. When items are taken out into the store, new items should be added to the back of the display shelves so that customers pick the oldest items first. 2. Label Locations Clearly & Use Item Numbers: If you re going to take the time (or hire the help) to count your inventory, don t make the job any harder than it has to be. By properly and clearly labeling every inventory storage location, you ll ensure that items are not forgotten or double counted. We suggest labeling by section, row, racks and then shelf numbers - all of which should correspond to a facility layout diagram. Whatever location labels you use, just be sure that they are consistent, easy to read and easy to change should the need arise. We also recommend using your own facilityspecific item numbers. That way, if your supplier or vendor for a product changes, your system for counting inventory won t be in jeopardy. 3. Use a Team Approach: While you re busy managing inventory in your day to day processes, be sure that your VP, CFO, managers and any procurement and loss prevention specialists are all working together to make the inventory process as streamlined as possible. Using a team approach will ensure that all departments are on the same page and that nothing slips through the cracks. If you utilize a professional inventory service, such as Reliant, ask to have a store manager present in their initial crew meeting before counts so that he/she can have a voice in representing the store throughout the process.

4. Decide on an Ideal Time Frame for Physical Counts: Keeping your doors open for business is a priority. That s why we recommend developing a plan for counting during business hours and in a manner that will cause the least disruption possible. Hiring a professional company like Reliant will ensure that your inventory can get counted while your customers continue to shop undisturbed. But whether you count in-house or hire out, there should always be an agreed upon timeframe for completing a physical count. We recommend setting aside a 5-6 hour window. Reliant will work with you to develop a strategy for completing your count in the specified time frame. We will add as many crew members as necessary to guarantee that we get in and out in a timely manner. 5. Use Updated Technology & Implement Tracking Software: Inventory management has become increasingly efficient with the rise of new technology. Handheld units save time and can be programmed to stream data directly. Programs like Reliant s iaudit provide real time access to reports and allow you to track and account for a particular item s movement throughout your store. Be sure to take advantage of the new technology that s available so that you can maximize the time and energy you spend on inventory. An up-to-date tracking software that can follow SKUs and generate reports for you concerning the current, physical location of your products will prove to be a worthwhile investment. 6. Have a Backup Plan: Products are always changing and vendors are constantly adjusting what they do and do not provide. Never leave your store at the mercy of any particular vendor. Have a backup plan in place to be able to quickly order a product from a secondary wholesaler in case your primary vendor stops offering it or runs out temporarily. 7. Train and Educate Your Staff: First thing s first. Your employees need to understand just how fundamental inventory control truly is to your bottom line. The more effective they can be at helping store management keep tabs on inventory, the more money your business will save - which is better for them and for the store! More specifically, though, be sure to take training time with each sector of your staff to brief them on how inventory protocols, tools and software should be utilized within their own department. Those who stock shelves and do regular cycle counting must be particularly familiar with all aspects of inventory control.

8. Complete Regular Cycle Counts: These counts can occur on a daily or weekly basis and will lead to improved accuracy when it comes time for your physical count. Cycle counting saves time and money by keeping track of specific inventory on a smaller scale without the complication and time requirement that a full inventory requires. Assign one employee to be a dedicated cycle counter for a particular department (ex: produce or deli). This will allow that individual to become acquainted with your item numbers and to develop expertise in the area of identifying and reconciling discrepancies. We recommend working cycle counts into your employees schedules and regularly looking at the data from your various departments to identify buying trends throughout the year. 9. Review Reports Regularly: Well, there s a reason that you ve implemented cycle counting and a programming for tracking your products with live, streaming data (see tip #5). Keeping tabs on every item in your grocery store inventory certainly isn t just for kicks. You ll want to put that software to use, generating reports and regularly reviewing them to observe trends in the data. Because this will help you to forecast accurately, you ll become more efficient at ordering from your vendors. You ll also be better informed in general, which will improve your ability to make important business decisions and plan for the future of your store. 10. Hire Professional Help: If you ve struggled to maintain proper inventory control in the past, you re certainly not alone. In fact, most grocery stores today do not employ enough staff to be able to do physical inventory internally - and especially not while the store is still open for business. That s why Reliant exists. We take all the stress out of inventory so you can focus on doing what you do best - operating your business, keeping your doors open and serving customers with excellent products! Leave the counting to us. We deliver accuracy in a timely manner - every time! Call us at 888-918-4792.

Call Reliant Today at: 888-918-4792