Inventory management and automation: the key to avoiding financial losses in retail

In the retail sector, the stock is considered one of the main financial assets. However, according to a survey by HSR, specialized in market studies, less than 40% of retailers invest in inventory management systems. The importance of adopting efficient management and process automation have proved to be essential solutions to minimize errors, optimize resources and avoid financial losses.

“Effective management is critical to the growth and stability of a company. Investing time in recognizing and correcting the most common mistakes can optimize services and make everyday life easier, avoiding unpleasant surprises and even ensuring more business opportunities”, says William Santos, commercial director of VarejoNline, a company specialized in technology for managing stores, franchises and points of sale (POS). 

VarejoNline serves networks such as L’Occitane Group, Decor Colors, Petland, among other large operations; the experience in the segment allows William to bring insights on the topic. The specialist highlights some simple actions, but that can transform the reality of your retail and avoid financial problems. Check it out:

1. Have daily cash control

Many franchisees neglect daily cash control, which can lead to significant discrepancies and losses in the medium and long term. William emphasizes the need to record all transactions, from large sales to smaller expenses, including face-to-face sales and e-commerce. 

“ A disorganized cashier can turn into a snowball. Setting aside time, every day, to focus on this management is essential. To make it easier, the solution is to implement a cash register system and ensure that it is constantly followed and fed”, he explains.

2. Separate personal finance from business

It is common for some retailers to mix personal finances with business finances, especially when they deal with more than one point of sale. William warns that this practice can obscure the real vision of the unit's performance and create serious fiscal and cash problems. The solution is to establish different bank accounts for the company and for personal use, ensuring a clear separation.

3. Ensuring anticipation of seasonal expenses

Seasonal expenses, such as quarterly taxes, license renewal and replenishment of stock on commemorative dates, often take the franchisees by surprise. If there is no planning, these expenses cause tightness that could be avoided. William recommends creating a detailed payment schedule that considers these seasonal spending and helps to properly reserve funds. 

4. value financial data analysis

Analyzing the company's budget data regularly can ensure franchisees identify patterns, trends and areas for improvement. So keep track of up and keep track of it. 

“It is important to dedicate time to periodically review the reports and seek perceptions to optimize the franchise's financial management. Today, management systems, the famous ERPs, are able to present the main data to retailers, or even connect with APIs to customize operations according to the needs of each business”, explains the specialist.

5. Investing in training and financial education

It is not enough to have the management tools and not know how to use them, or not even understand about the subject. William encourages owners to constantly seek courses, workshops and resources that help them improve their financial skills and staff. 

“ Knowledge is a powerful tool. Some ERP companies even include employee training by offering the solution. This makes management smarter and reduces the vulnerability of the business”, he concludes.