![]() What might be cutting edge one season may be destined for the history books a mere month or so later.Ī JIT system will ensure that you’re not stuck with products that no one wants, saving you having to reduce the price just to clear the stock (if possible) and ultimately cutting into your profit margins. Inventory obsolescence, or ‘dead inventory’, is a major problem retailers face in industries such as technology and fashion. Rent, electricity, water and other costly warehousing overhead costs can quickly swallow those margins even before the stock has hit the floor and had a chance to end up in your customer’s hands.Ī JIT system will cut out the need for large warehouses – or at the very least minimize the storage space required – which flows back to the bottom line of your business. One of the biggest ancillary costs to a retailer is the inventory holding costs associated with housing excess stock, which has been ordered based on best guess estimates or for that rainy day. So why should you opt to go for a JIT over other methods of inventory methods? Here, we explain four reasons why your retail store could benefit from adopting a JIT inventory system.Īs we touched on earlier, retail is an industry where your financials need to be lean and mean across the board. Instead, it prefers a retailer to buy only what they sell – ultimately keeping inventory levels low by ensuring suppliers only produce when a customer orders. Provided your ERP is set up to handle it, a great way to keep the inventory-management risks as low as possible is to adopt a Just in Time, or JIT, inventory management strategy.Ī JIT inventory strategy aims to veer away from buying large volumes of stock and having it sit in your factory or store. Industry leading retailers are sleek, nimble and run like well-oiled machines, meaning that if your processes are just a little bit off, your bottom line can teeter from healthy to uncompetitive in no time. One of the biggest risks to a growing retail firm is managing their inventory. Margins can be tight and customer demands are forever changing. At times it seems like constant slog to get ahead. The No BS Digital Transformation Workbook.Microsoft Dynamics 365 Training and Support.Rootstock Software® Training and Support.Kantata (Mavenlink) Training and Support.Microsoft Dynamics 365 Customization, Integration and Development.Rootstock Customization, Integration and Development.Salesforce Customization, Integration and Development.Sage Intacct Customization, Integration and Development.FinancialForce Customization, Integration and Development.Oracle NetSuite Customization, Integration and Development.Kantata (Mavenlink) Customization, Integration and Development.Microsoft Dynamics 365 Implementation, Reimplementation, and Rescue.ServiceNow Implementation, Reimplementation, and Rescue.Rootstock Implementation, Reimplementation, and Rescue.Salesforce Implementation, Reimplementation, and Rescue.Sage Intacct Implementation, Reimplementation, and Rescue.FinancialForce Implementation, Reimplementation, and Rescue. ![]() Oracle NetSuite Implementation, Reimplementation, and Rescue. ![]()
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