This is so basic it might seem silly to ask but…. Are your hardware inventory numbers current?
If they’re not, you can’t expect to operate at peak efficiency.
We’re here to discuss how vital it is to get your inventory numbers up to date and trustworthy in your system. The inventory count in your store needs to be current. It’s the jumping off point to knowing exactly what you have in stock to sell.
“Inventory accuracy and keeping the correct inventory levels are the basic building blocks to inventory control,” said William E. Aubuchon, IV, president and CEO of The Aubuchon Company.
With online visibility today, customers shopping on your website need to see an accurate count too.
“And if you participate in BOPIS, or Buy Online Pickup In Store, accuracy is extremely important. Proper inventory levels can be a little trickier. You need to have what the customer wants when they want it, but it becomes a balancing act with the right inventory turns and keeping carrying costs under control,” said Aubuchon.
William E. Aubuchon, IV, is the president and CEO of The Aubuchon Company, based in Westminster, Massachusetts, an Orgill dealer with 107 stores in eight states, and described as the oldest and largest family-owned hardware store chain in America. The company also purchases from Emery Jensen Distribution.
Specifically, how should an owner best manage their inventory?
“The first thing that comes to mind is regular cycle counting and zero auditing, but it really begins with creating thoughtful purchase orders and accurately receiving products into your store. A good replenishment system can be very helpful, but it does take work to get it right,” said the CEO.
Diving into details, what sorts of procedures work best for an owner or manager to clean up carrying costs, and get numbers current and trustworthy in the system?
“Conduct a full wall-to-wall physical inventory and then begin a robust system of cycle counts and zero audits,” said Aubuchon.