Establishing a successful business in this competitive world depends upon several key factors which directly or indirectly affects your business operations. One such critical factor is inventory management. Ordering, storing, using, and selling are all part of inventory management. The management of raw materials, components, and finished products, as well as their storage and processing, falls under this category.
This applies to all the industries, be it offline or online, small or large,clothing or electronics or any other product categories, each and every type of retail business needs an effective & efficient inventory management. In this article we will focus on clothing inventory management but before we move on further let’s have a glance at some insights about the clothing industry.
Clothing Industry as an Opportunity
The fashion industry statistics shows that clothing industry is a glamorous industry to venture into. According to the Statista report, the fashion industry is estimated worth three trillion dollars and clothing industry shares the major chunk of it along with the shoes and other accessories. The global apparel market is projected to grow from 1.5 trillion U.S. dollars in 2020 to around 2.25 trillion dollars by 2025, showing that both apparel manufacturing industry as well as the retail industry is going to scale with time. After the onset of pandemic, a sharp growth in the ecommerce retail sales have been observed which is predicted to grow exponentially as the customers are showing more interest towards ecommerce shopping.
The Much Needed Inventory Management & it’s Benefits
All the above data and facts clearly indicates that the clothing industry is a glamorous one to venture into. But that does not mean you undermine the key aspects & factors responsible for success of every retail business, such as the inventory management. Afterall, every retailer wants to avoid empty shells due to insufficient stocks or overcrowded back rooms due to too much stock levels.
Each item of clothing passes through a number of hands, from the source of the raw material to the textile manufacturer to the quality assurance officer to the end consumer. Inventory management for clothing covers all these steps and much more.With inventory management, you can improve your retail fashion business easily. It keeps away the chaos and helps in creating order. Let’s have a look at some of the perks of using a sound and advanced inventory management system in your clothing business.
- Increase Supply Chain Accuracy & Streamline Productions
A successful supply chain relies on efficient warehousing, real-time item tracking, accurate packaging, and rapid delivery. Fashion retailers and apparel companies can track their entire supply chain comprehensively when inventory management technology is applied globally. It also helps Producing the right amount of goods at the right time, at the lowest possible cost, that fulfills the customer’s expectations.
- Improved Planning
It helps you forecast the upcoming trends and provides complete analysis of the spot sales ahead of time giving you an opportunity to capitalize according to the ongoing trends and fluctuations.
- Reduction in Carrying Costs
As well as the cost of purchasing inventory, warehousing and handling it are included in the carrying costs. Markdowns may also be necessary if clothing items don’t sell quickly. Your inventory counting will always be visible with an integrated warehouse management system, lowering the workload on your warehouse manager. By keeping enough product on hand, you can meet demand while keeping your carrying costs to a minimum.
- Reduction in Stock Outs
In short and long-term, stock-outs can negatively impact the behavior of customers towards a brand. Especially in the context of online shopping, they are more likely to look to another retailer to fulfill their needs. Robust inventory integrated with ERP systems can generate purchase orders based on sales figures, reducing the likelihood that you’ll run out of a product when you need it most.
- Optimize Fulfillment and Overall Customer Experience
In order to provide your customers with the best possible experience, regardless of whether they are shopping online or in a physical store, you must align inventory and track fulfillment across all channels of customer sales. Integrated order management systems can give you full visibility into new business and orders, as well as manage shipping and freight. They let you track orders in the field and integrate with your back office systems.With today’s technology, credit can be verified, pricing can be accurate, and delivery can be fast all while minimizing processing errors.
Inventory Management Software & Tools
Traditionally spreadsheets were used for inventory counting and management. But with the increase in trend towards digital mode of business as well as shopping, companies are adapting accordingly to meet with the consumer priorities and demands. Digital platforms with technologically advanced features for inventory management integrations such as warehouse management system, product lifecycle management, inventory forecast and enterprise resource planning are available.
Apart from that clothing store inventory software such as Onebeat, ApparelMagic, ShareCloth Editor, A2000,Fast React BlueCherry are some of the famous software to name. These systems are integrated with retail POS systems, and they help manage an apparel business efficiently by keeping accurate, up-to-date analytics, leaving no scope for error. Clothes store inventory software typically includes features such as inventory reports, backordering, inventory optimization, multichannel sales, order management, and sales reports.
How YRC can help you
We understand that the above mentioned words and technologies may sound intimidating or confusing to some of you. No need to worry!
Your Retail Coach is a bespoke retail consultancy firm having years of experience in catering impeccable business solutions across the globe. YRC aims to help their clients create values for their business as well as their customers. Our in house experts for inventory management, SOPs , business finance , business process solutions and many other services related to retail commit towards delivering scalability, sustainability and high ROI to your business venture. Consult us today for a better future.
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