INVENTORY BEST PRACTICES
6 DEALER-PROVEN WAYS TO KEEP YOU STOCKED
At this point, we are all painfully aware that managing inventory has been a struggle, both due to the pandemic and the raw materials shortage. Yet, as inventory waned and demand grew, those who fared best had robust procedures already in place.
Here are a few best practices from some paint dealers who successfully adapted to the shortages:
1. Don’t Do it Alone – managing inventory is a big job, so make sure your staff understands their role in tracking products.
2. Be Cautious – scan individual items instead of assuming similar-looking items have the same SKUs to avoid errors.
3. Be Agile – quickly try new products or swap out-of-stock items for something similar. Make sure you have access to a variety of vendors to supplement supply.
4. Diversify Your Products – Availability has trumped brand loyalty for many customers, so it’s the perfect opportunity to bring in new brands.
32% of residential and commercial pros have tried a new building material brand during the pandemic, and 90% were satisfied. 20% of DIYers tried a new brand, and 2/3 said it was either somewhat or better than the old one.
5. Build Your Backstock – some see buying in advance and in larger quantities as a risk, but it secures your product availability if and when reorders become difficult. When others run out, customers will come to you.
6. Make Space – if you don’t have the space for new inventory, consider a shipping container to store extra product.
While the hope is that life -- and inventory -- will return to normal, implementing these inventory best practices can keep you stocked while also safeguarding you from future shortages.
Sources: Venveo, The Farnsworth Group, PDRA