Do you have inventory management software in your POS System? If not, how are you keeping up to date with the ever-changing – and rising – materials costs in 2020?
Most newer POS Systems have modules to help track costs, inventory on-hand and alert when the price is going outside of the target margin. Business owners or the management team can make an assessment as to whether or not the retail price needs to go up.
It is a critical time when each and every business owner must do what is right for their business to protect the margin dollars or percentage that help to cover overhead, staffing and other business expenses.
Many of our clients are turning to us for assistance to either set up or activate inventory management software now.
Here we share some best practices, as well as recent market insights, to help you understand some of the benefits of software available.
Inventory Management for Restaurants
Inventory management for restaurants helps manage food costs, advance ordering to save on delivery fees as well as to meet the pars with on-hand inventory needed for customer demand. You can’t sell what you don’t have, but even more important is to know how much margin you have on the finished product from the inventory you are using today.
Most restaurants don’t follow a “Market” price for their foods and beverages. Instead, they set target margins on each item to help offset the back end costs of overhead such as rent and utilities, supplies and labor costs unrelated to the actual production in the back of the house. The right software and technology can also help restaurant owners understand the impact of third party delivery fees on net revenue from volume sold that way.
All of this can be calculated in a robust inventory management software that may or may not be connected to your restaurant POS System.
Most restaurant clients we have helped install systems for recently prefer it to be all in one and tied to their POS. They say that it gives them better reporting, alerts for critical outages and analytics they can review to assess performance each day or week. Waiting until the end of the month to assess inventory is just too late – they want to know more and they want to know it now.
Inventory Management for Retail
Another important area is inventory management for retail stores. As more and more retailers are selling items both in-store and online, knowing what is in stock is critical. Real-time inventory management makes the difference between satisfying a loyal customer and losing them to a big box or other online retailers. E-commerce has become an essential option for any retailer too, even if it is a brick and mortar store on “Main Street”.
Inventory management systems for retailers also help with retail pricing based on carrying costs and pre-set target margins. Business owners can have confidence that in-store staff can receive new inventory and make it available to the customer at the right price, right away.
Alerts, out of stocks and summaries of online transactions are also features that are being requested now and help to make the management of the retail store even easier.
There are many options to consider for a retail POS System, and knowing all of the features you want to have is important.
POS Systems To Consider
There are many POS Systems to consider. We help our clients to evaluate what is right for their business, whether they are a restaurant, a retailer or a wholesaler. In any business, knowing the inventory turns, what is in stock and the cost of all supplies is critical. It is probably even more critical today than ever before.
There are many options to consider, and many of our clients are choosing to install new systems. For example, Lightspeed is simple to use and fairly inexpensive, plus, it is easy to set up and install. We have also helped clients with Shopify and other well known (and not so well known) systems that are right for their business.
TransAct provides onboarding and training beyond the manufacturer for any POS System we support, so you can feel confident in your decision. You and your staff won’t be left to fend for yourselves, especially during busier times of the year and those critical holiday seasons.
As consumers we are all paying more for many things, from food to paper products…it is important to know when your business needs to make a price adjustment to stay on-target based on the cost of inventory and supplies.
Contact us today to schedule a consultation on what type of inventory management software or POS System is right for you and your business.