Are you facing cash flow problems in your salon business? Have you ever undertaken the issues that occur at your store shelf? Monitoring the stock chart is mandatory to manage the Salon inventory of your business. That includes the usage rates, stock levels, delivery time, and order quantity.
Following the traditional approach to managing the salon business has a negative impact, and it will only diminish your business image. Several issues are because of poor communication, poor decision making, and poor execution. And it all starts at the store/inventory level.
It is a frequently overlooked and essential measure in salon management. Consider the fact that inventory operation and inventory management are significant for the well-being of your salon business.
Digitization has made the global supply chain more consistent, and the retailers have started using critical strategies to fulfill the customer’s expectations and behaviours. It is becoming more and more complex regularly. Inventory visibility was never so important that it has become today.
Statistics
Check out the below statistics to find the consequence of inventory management.
- Till June 2019, US retailers sold about $1.36 for every $1 in inventory.
- The improvement of private warehouses has increased from 15,763 to 18,182 (almost increase of 15.3%). From this figure, it is clear that integrating the additional warehouse to the network can enhance the chances of inventory management.
- 34% of the companies have delivered the products late because of the lack of inventories in their stock. So, when the inventory levels are not accurate, then it is impossible to manage the stockouts, replenishment schedules that ultimately leads to poor customer experience.
It is vital from the above statistics that inventory management is a must and permits the businesses to fulfill the orders effectively and on time. So, don’t let dollars fall out from your fingers.
We are sure that now you have got convinced about the criticality of inventory management. For the salon business, inventory management is the most significant expense. Proper management of stock shows a definite rise in the success of your salon business operations.
Before directly jumping to the benefits that effective inventory management can give to your business, it is imperative to comprehend what Inventory management is? Let’s find out!!
Understanding Inventory Management
The right level of stock at the right place, at the right time and the correct cost is Inventory Management. How sharp!!
It is the precise path to collecting, filling, and gaining from non-capital assets (products and services). Precisely, it is the supervision of products from the suppliers to the warehouses, and then to the Point of Sale (PoS). Inventory management depends on the complete records of the product when they enter and exit the warehouse. It has become a critical aspect of every business, and it is a real-time investment.
Adding inventory management in your spa and salon business assists you in organizing the resources, streamlining operations, and boost in the returns. Below the specifications for inventory management are given. Check out:
Goals of Inventory Management System
- Maintains a trade-off among the ordering costs and the carrying cost to reduce the total cost of inventory
- Helps to maintain a sufficient inventory for constant sales and production operations.
- Prevent the stock-out issue that your salon business can face while inventory shortage.
- Recommends an effective inventory control system for your business to avoid damages, misuses, and losses.
- Boost the bottom line and reduces the cash flow.
- Discover the inventory when out of stock and create the reports.
- Tracking stocks from multiple locations.
- Convenient on each device for easy inventory analysis.
- Real-time access to popular inventory levels
- Add the stocks only when needed to avoid overspend.
Features of Inventory Management
Stock tracking at multiple locations
Track your salon inventory from multiple locations and make it a seamless task. For those who have their franchises at different locations may find it complex to track the stocks. Using inventory management has made it easy for you.
You can now effortlessly expand and streamline your business. Adopting this can permit you to use the resources efficiently without any complexities.
You can discover the inventory of your all chains from this software solution to check which has an appropriate amount of products and which has not. So, the Salon software lets you examine the quantity parts, trendy products, and sales reporting as well. Now you can transform inventory into a manageable and spontaneous process with multi-location inventory tracking.
Storeroom procedures
Where do you put your Salon’s stock? In a store, right?
Yes, every Salon should have a storeroom within its premises. The inventory, when arrives, should be settled into the storeroom itself. And similarly, when the products are taken out, then the details of the one who is handling and managing all should be noted or recorded.
The best method to achieve this is through the Salon software. It lets you keep a log of product checks in and check-outs to compute the product levels automatically.
Conducting a physical audit
It is vital to conduct an audit of the warehouse monthly for proper inventory control. And, it is handling by the one who is not a part of your Salon’s daily handles. The audit aims to check whether the product level is matching the required inventory levels.
It assures that the employees are following the appropriate check-in and check-out, and there is no misconduct. So, It should be noted that without this integration, there would be complexities in managing the inventory of your Salon.
Describing the product usage
When the products are placed on your salon shelf, it becomes challenging to track the usage of the products for appropriate usage. The first step that one should execute is to discover the quantity of the product to be used for the service cause it takes several products for one service.
The other aspect that should also be taken into consideration is the computing of the results or the outcome or the customer satisfaction level, and for that, Salon software can be used.
This software solution can guide you in estimating the amount of the usage of the product for the services you are offering. After entering the product usage, you can get full control of the inventory.
Real-time stock control
Keep full control of your stock using the Salon and Spa management software. Check the availability of the stocks and let your customer purchase accordingly. Do not disappoint your potential customers with a lack of product stock in your Salon.
For instance, you can use the software management solutions to automate your daily inventory operations for ensuring real-time stock control.
Diminish the issues of overstocking, slow-selling, overstock. The Software can also analyze the general measures such as stock turn measured for accelerating your Salon’s effectiveness and for handling the cash flow effortlessly.
Critical reporting
Analyze your Salon’s best-selling item and sales trends with the critical inventory features that Salon software holds. All it demands is to describe the needed enhancement to boost the sales of your business.
You can use the Point of Sale (PoS) features to get the immense benefits that software solutions can give you.
Manage the stock level effectively and make it transparent for your customers to find the exact cost of the products. Therefore, take the benefits that inventory reporting can give and boost the inventory control level. Generate a proper report to make productive decisions and understand the profitability of your products.
Expiry data control
Every product has its own life, and it is important to check the use of the product within that expiry date. So, To show dedication towards the sale, you need to manage the product’s expiration appropriately.
The best solution that you can go with is to use the Software that can make it easy for you to find the expiry date of the products and, therefore, higher the level of customer satisfaction.
You can find the time to use products in a safe, healthy, and effective manner; that is, the real-time usage of the product. Therefore, adopting the First In First Out (FIFO) approach can higher the chances of finding the exact expiry date of the products. The critical Software can notify when the expiry date of the products is about to reach, and you can act accordingly.
Stock inventory as per purchasing orders
The elementary thing is buying the right product at the right quality and the right price. And this all should be purchased from the best supplier in the market. For the Salon owner, the first and foremost thing is to achieve the essential measure appropriately. Following a well-managed and well-organized purchasing system, you can have a healthy relationship.
On the contrary, it can improve inventory management and Salon performance also. Hence, it is vital to source and distinguishes several suppliers to find out the one that can give you the best deals with all purchasing requirements.
Quick Analysis of the inventory results
Using the Salon management software can make it seamless for you to investigate the results of your Salon inventory. You need to enter the credentials on the Software, and the solution will automatically contrast the information with the accounting indicators to give accurate results merely in a click.
It saves the time that you can use to perform to execute your everyday chaos.
Things to keep in mind about Salon inventory management
It is not a guessing game
When it is about business management, guessing cannot be a part. The process increases regular checking of salon inventory and the suitable timing of orders accordingly. It can also be termed as Just In Time (JIT) inventory. It is the best manner to maintain the inventory in several small and large Salon chains.
Its endless benefits
Manage the inventory of your beauty business and give 100% customer satisfaction. If executed suitably, the cash flow will undoubtedly be improved. If you want your customers to visit you time and again then it is the best method you can go with.
It streamlines your ordering procedure and lessens the chances of stock wastage. Last but not least, it saves you and your customers valuable time.
Set the goals before considering inventory management
Essentially, you need to set some meaningful goals for simplifying want you to want to achieve before taking into account the inventory management.
The majors to include
The Salon owners should know every single aspect of the inventory, which is simultaneously related to customer satisfaction.
Knowing the inventory record
The size of the business highly depends on the type of data you are considering to evaluate the inventory. Details, such as product name, reference number, current stock level, different prices, and distributor name, etc. should be recorded.
Estimated inventory usage
The Salon employees should report to the owner regarding the product’s being used regularly (daily/monthly). It is competent because it can help to estimate the changes that can be made in the future for improving the Salon business operations.
Concluding Remarks
We have mentioned all the necessities and the possible ways to manage the inventory of your Salon business.
Productively use the strategies to fill up your Salon shelves. We assure you that it is worth the time and cost.
Choose the right direction and the proper method for your Salon to fulfill all your desires. Managing the inventory is essential to stay ahead of your competitors. The most important aspect is customer satisfaction. Achieve this, and no one can stop achieving success.
And, keep a good handle on your inventory to have a true account of your Salon business. Do not let the inventory be the reason for your downfall. So, don’t overlook its importance!!
Hopefully, you have liked this article!!
Let us know if there will be any queries and suggestions in the comment section below. And, if we have missed something, then do share it with us. Happy reading!!
