6. How To Manage Consignment Inventory
Once you have signed your agreement and are ready to sell consigned products in your retail store, it is vital to have an inventory control strategy in place when selling consigned products. Below are some best practices for managing consignment inventory.
- Learn more about your product
First and foremost, you must know what your product is as a retailer. Different customers prefer many different types of products and merchandise. Knowing this will help you understand what styles and items are currently in demand. Knowing the type of products your customers want will depend on the data you have available to you. Having the right point of sale software is therefore crucial. It’s also essential in a consignment model to know the durability, quality, and market value of your product before you make any sales.
- Do not consign too many products as a consignor
As a consignor/supplier, it is imperative to monitor and manage the supply of your consignment inventory. You must supply only what is needed and in the right quantity. It is best to have a comprehensive production plan to help you determine how much supply is needed to achieve this. This will help you avoid overstocking your warehouse and save you unnecessary financial burdens.
- Leverage inventory management software
To maintain control over consignment inventory, the best solution is to automate your accounting and inventory systems. Instead of using spreadsheets or pen and paper to track and manage your inventory, adopt cloud-based inventory management software that streamlines data entry, tracking, and reporting. When it comes to managing your sales and inventory, KORONA offers robust tools to help you sell and manage your products. KORONA POS lets you know which items are selling best, how profitable they are, and which products are underperforming.