After many years of negotiations, Brexit quietly happened overnight on New Year’s Eve.
As a result, many companies are now facing significant disruption with the movement of their goods in and out of the EU block. Increased paperwork requirements have added hours-sometimes days-to the transportation process which has been bad news for fresh food produce travelling in and out of the UK and across the continent. It’s also proven tricky to administrate when moving goods originating from multiple sources as border customs work to determine country of origin and apply the rules accordingly. In short, moving goods in and out of the EU just became more costly, more time consuming and more paperwork heavy which will likely result in delays getting your products where they need to be and when.
Combine this with the lingering impact of the Coronavirus pandemic on retail stock movement and many retailers are quite rightly sweating on whether they are going to have enough stock to deal with a busy summer season?
One thing each of these factors has highlighted is the importance of retailers having a proactive and firm understanding of their stock. Let us explain more…
Make more informed decisions, earlier
Evidence shows that there isn’t a retail sector in the UK left unaffected by the combined effects of a global pandemic and Brexit and in such times of uncertainty we all want to get ahead of the game as best we can. Having a handle on stock levels across your business will arm you with all of the information you need to make good decisions as early as possible.
It is only by knowing what stock is sitting where and in what volume, that you can make effective decisions and ensure you’re not only maximising your sales opportunities (by not being over or understocked), but also effectively keeping your potential paying customers happy at the same time. Stockkeeping is the key to giving you the understanding you need.
Understanding trends
Retail patterns we’d come to know and find comfort in have all but gone out of the window in the last year. As Brexit uncertainty and Coronavirus lockdowns kicked in, we’ve consequentially seen product demand swinging wildly.
At a time when stock delivery can and very likely will be slower, understanding existing buying trends and therefore what stock you need as early as possible is of paramount importance. We’ve already mentioned that stocktaking is essential in understanding what stock you’ve got and when, but this is an ever-changing picture. Whilst it can give you that accurate snapshot on which to make ordering decisions, it can also arm you with trend analysis and a detailed analysis of what’s hot and what’s not. Never has this been more important…
Reducing stock loss
Despite best efforts, there have been many high profile retail casualties over the past year which have changed the face of the British high street. Stalwarts like Mothercare and Debenhams have struggled to weather the challenges of 2020, both closing their doors for good and they’re almost certain not to be the last. With many retailers feeling the pinch it is absolutely essential that stock loss is minimised.
Stock loss can have a significant impact on your bottom line whether as a result of inexperienced or poorly trained staff members, accidental damage or criminal action. Stocktaking is a highly effective way of identifying issues of stock loss; and only once the problem is known can you reduce it and start maximising your potential margins.
Conclusion
As we’ve said, we know that many retailers are facing hard times and longer waits for stock delivery. With that in mind, effective stocktaking can arm those businesses with an effective understanding of where they stand now in order to make better and earlier decisions, increase awareness of buying trends on stock levels and also maximise margins by identifying existing stock loss pinch points. All in all, the perfect cocktail for a productive and proactive retailer.
If you’d like to talk to us about improving your retail stocktaking then visit https://www.abacusvaluers.co.uk/our-stocktaking-services or call our team on 01637 874609.
