When a retailer moves from notebooks or spreadsheets to a stock-management system, it is tempting to track everything. In practice, the most useful systems start with the information that helps you make everyday decisions, then grow as the business needs more.
This article sets out what a small South African retailer should track, and why.
The essentials
Products and variants
Each product should have a clear name, a unique code and its variants, such as size or colour. Without consistent product records, every other report becomes unreliable.
Stock on hand, per branch
Know how many of each item you have, and where. If you have more than one branch, separate stock figures per location make transfers and reordering much easier.
Sales linked to stock
Every sale should reduce stock for the correct product. This is what keeps your stock figures honest and lets you see what is really selling.
Stock received
Record deliveries against what you ordered, including shortages and damaged items.
Adjustments and transfers
Record write-offs, damages, returns and transfers between branches with a reason. These records explain why stock changed when it was not sold.
Information that improves decisions
- Reorder levels. A minimum quantity for each product, so the system can warn you before you run out.
- Supplier details. Who supplies each product, their lead times and your purchase history.
- Cost and selling price. Needed to understand margin, not only turnover.
- Sales by period. Daily, weekly and monthly figures show trends and seasonal patterns, such as the back-to-school rush.
Reports worth checking regularly
- low-stock and out-of-stock items;
- best and worst sellers;
- slow-moving stock that ties up cash;
- sales and margin by category or branch;
- stock count variances.
What can wait
Loyalty programmes, complex promotions and detailed forecasting can be valuable, but they depend on accurate basic records. Get products, stock, sales and receiving right first.
Start with your biggest problem
If you often run out of stock, focus on reorder levels and low-stock alerts. If you cannot see which branch is performing, start with per-branch sales and stock. A phased approach lets you see value quickly.
To see what a retail dashboard and stock list can look like, visit our demos, explore our retail management software or request a retail software demo.
