It's important to note that inventory management software is often designed to cater to specific niches. This means that the best software solution for your doggy daycare, grooming salon or dog kennel business depends on your unique requirements and operations. 

The optimal inventory management software will streamline your day-to-day operations, provide valuable insights, and ensure you're not paying for unnecessary functionality. A robust system is designed to offer these benefits while customizing to your business needs.

In this article we discuss inventory management techniques for pet care, explain what to look for in good inventory management software, and go over some best practices for managing inventory.

Inventory management plays a crucial role on the retail side of a services businesses, ensuring they have the right products available in the appropriate quantities at all times. By implementing effective inventory management practices, these businesses can minimize costs associated with excess inventory while maximizing sales opportunities. Real-time inventory tracking is a key feature that aids in streamlining the entire process.

Efficient inventory management for small retail businesses guarantees they always have the right products in stock, avoiding situations where items are out of stock. It also helps prevent unnecessary expenditure of resources on excess stock that occupies limited storage space.

With well-managed inventory, small retail businesses can strike the perfect balance, ensuring they meet customer demands promptly while optimizing their bottom line.

• Accurate and Real-Time Tracking: The software should provide precise and real-time inventory tracking, keeping you updated on stock levels and availability.
• Integration and Automation: The software should seamlessly integrate retail products in bills that have also accounted for pet service appointments (ex. dog grooming service) while automating processes like issuing a purchase order on a low stock event.
• Barcode Scanning and Serial Number Tracking: Support for barcode scanning and tracking products with unique identifiers simplifies inventory intake, tracking, and fulfillment.
• Reporting and Analytics: The software should offer comprehensive reporting and analytics, providing insights into inventory turnover, sales velocity, and product performance.
• Mobile and Cloud Accessibility: Accessible from various devices, including mobile, and stored in the cloud for security and remote access.
• User-Friendly Interface: Intuitive and easy-to-navigate interface for smooth operation and reduced learning curve.
• Scalability and Flexibility: Capable of scaling as your business grows, accommodating more products, transactions, and users without performance issues.
• eCommerce Integration: People don't just go to the store anymore. They buy online! All variants, and stock levels need to be accounted for when a pet owner is purchasing products from your site.

This means that inventory management is seamlessly integrated into bills that include both products for sale and associated services. This holistic approach ensures a comprehensive solution for managing inventory and services-based transactions, streamlining your operations and providing a unified system for billing and inventory control.

• Fine-tuned forecasting: By leveraging historical sales data, market trends, predicted growth, promotional activities, and marketing efforts, you can fine-tune your projections effectively. If you are an Easy Busy Pets user, utilize the online Analytics Dashboard to access valuable insights on historical sales figures.
• FIFO for effective inventory management: The FIFO (First In, First Out) approach is crucial for optimal inventory management. By ensuring that goods are sold or used in the same chronological order as they were purchased or created, you can maintain product freshness and minimize waste. This practice is particularly vital for perishable items such as dog food, baked doggy biscuits, or canned foods for cats, where maintaining quality is essential. However, FIFO is not limited to perishable goods; it is also beneficial for nonperishable items. Products that remain in storage for extended periods can become damaged, outdated, or unsellable. By adhering to the FIFO principle, you can mitigate these risks. In a storeroom or warehouse setting, an effective way to apply FIFO is by adding new items to the back of the stock, ensuring that older products are positioned at the front for prompt utilization or sale.
  By adopting the FIFO approach in your inventory management processes, you can optimize product quality, minimize waste, and improve overall efficiency in your business operations.
• Set Reorder Points and Safety Stock: Determine reorder points based on lead time, demand variability, and desired service levels. Maintain safety stock to account for unexpected fluctuations in demand and supplier delays.
  
• Stop selling low turn-over stock: Recognize inventory that has remained unsold for several months as low-turn stock. It's advisable to discontinue stocking such items to prevent wasted space and capital. Consider implementing strategies such as special discounts or promotions to clear out excess stock efficiently. By taking proactive measures, you can optimize your inventory and improve overall operational efficiency.
• Implement Just-in-Time (JIT) inventory: JIT reduces carrying costs by ordering inventory as needed, minimizing storage space and the risk of obsolete inventory. However, careful coordination with suppliers is crucial for successful JIT implementation.

• Supplier relationship management: Cultivate strong relationships with reliable suppliers. Negotiate favorable terms, maintain open communication, and explore options like vendor-managed inventory or consignment stock to improve efficiency.
• Adopt cloud-based Automation and Inventory Management Software: Leverage technology to streamline inventory management. Use inventory management software, barcode scanners, and automated systems to track stock levels, update data in real-time, and generate reports, and prevent online or in-store purchases of unavailable products, or products that are out-of-stock.
• ABCs (Always before closing?): Just kidding, do categorize your products based on their value and prioritize inventory management accordingly. Classify items as A (high-value, low-velocity), B (moderate-value, moderate-velocity), or C (low-value, high-velocity) to focus on critical items. There are many textbooks written on this topic. Here is a break-down suggested by Wild:
• "A" approximately 10% of items or 66.6% of value
• "B" approximately 20% of items or 23.3% of value
• "C" approximately 70% of items or 10.1% of value of the items

Experience a seamless setup process and user-friendly interface with our inventory management solution. It's quick to get started, and once implemented, you can easily navigate the system. Generate insightful analytics and receive real-time warnings, keeping you informed about low or out-of-stock items at all times. If pet owners are buying online, automatically prevent them from buying a product that is out-of-stock. Gain a comprehensive understanding of your inventory levels, ensuring efficient stock management. To learn more about utilizing our inventory management solution, explore our resources here.

• Log in as the manager and go to the Services section.
  
• Click on your (default) product from the product library.
  
• You can then view the inventory of any variant associated with the product.

When you begin selling your inventory, our system ensures you stay informed and proactive. Receive real-time warnings at your point of sale (POS) when items are running low or have sold out. This feature enables you to promptly reorder and restock, avoiding potential disruptions in your business operations. For step-by-step instructions on effectively managing your items, refer to our comprehensive Help Centre. 

Here are key tips to streamline your inventory processes:

1. Categorize Your Inventory: Classify your inventory into categories such as raw materials (flour, eggs, etc.), work in progress pieces (partially baked treats), and finished products (fully baked treats). This segmentation allows for better organization and tracking. Make sure to hide the first two categories from your clients for purchase.

2. Optimize Production Planning: Ensure accurate recipe formulation and production planning to minimize ingredient waste and maintain consistent product quality. Estimate ingredient quantities precisely to avoid overstocking or shortages.

3. Implement Batch Tracking: Establish a batch tracking system to monitor the movement of production batches. This helps with quality control, traceability, and managing expiration dates.

Regularly review inventory levels, forecast demand, and collaborate with retailers to gather insights. By effectively managing inventory, you can streamline production, reduce costs, and meet customer demands efficiently.

Do not put yourself in the position where you poorly forecasted what your sales will be.

In 2022, Kohl's experienced a 7% decline in sales, with Retail Dive reporting an excess of inventory that prompted a shift in their strategy. Instead of waiting until the end of the year, they adopted an aggressive approach to consistently clear their inventory. This change directly affected their margins and overall profitability, as they had to navigate the challenges of managing excess stock in a more proactive manner.

On the other hand, during the initial release of the Nintendo Wii in 2006, there was a significant shortage of consoles due to higher-than-expected demand. Nintendo faced challenges in meeting the consumer demand, resulting in insufficient inventory levels and frustrated customers unable to purchase the console. The example highlights the real-life impact of inadequate inventory management on a company's sales and reputation.

One essential strategy is to secure storage and display areas. Implementing robust security measures such as surveillance systems, access controls, and reliable locks helps deter theft and unauthorized access. By creating a secure environment, retailers can minimize the risk of stolen inventory, reducing potential losses.

Employee training and accountability play a crucial role in inventory management. Retailers should provide comprehensive training to employees, emphasizing proper inventory handling, storage protocols, and security procedures. By instilling a sense of responsibility and accountability, employees are more likely to adhere to inventory management practices, promptly report any discrepancies, and take proactive measures to address potential issues, thus minimizing losses.

Regular inventory audits are another effective measure. By conducting routine physical counts and comparing them against recorded inventory levels, retailers can identify and reconcile discrepancies or missing items promptly. This practice enables businesses to take corrective actions, such as investigating potential theft, addressing administrative errors, or improving inventory management processes, thus reducing losses associated with inaccurate inventory records.

Establishing robust return and refund policies (ex. "final sales") is vital in reducing losses caused by damaged items. By implementing thorough inspection procedures for returned items, retailers can identify any damage or loss and prevent compromised items from reentering the inventory. This proactive approach ensures that damaged or unsellable items are appropriately addressed, minimizing financial losses and customer dissatisfaction.

Business analytics consistently highlight the financial impact of inventory losses on retailers. According to the National Retail Security Survey, the average shrinkage rate in the retail industry, encompassing theft, damage, and administrative errors, stands at approximately 1.62% of total sales. These statistics underscore the significance of implementing effective strategies to mitigate losses and emphasize the need for proactive inventory management practices.