- Parent Category: Retail Tips
Using Departments in Your POS System
Tip #423 The Structure of Good Inventory Management
Dear Tip of the Weeker,
Most POS systems have some kind of department structure in place. In fact, you may have already created a department structure using the POS system in your store.
Whether you use your POS system to determine your store's department structure or not, as your store changes and grows you need to adjust your departments to keep up. Retailers who have good control of their inventory take the time to set up and manage the departments in their stores, allowing them to respond more quickly to the market and buy smarter.
How many departments should you have in your store?
Probably not as many as you'd think! Managing too many departments is a time-consuming waste and doesn’t give you the important information you need to get control of your store's inventory. Be stingy about how many departments you identify for your store, then break up your departments into classes and subclasses to make it easier to add merchandise to the correct categories.
Having a department structure in your retail store that gives you valuable, pertinent information about your business – primarily about what your customer is buying – is a critical part of good inventory management. And a critical part of good business management for that matter!
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