--- layout: default_v3 language: default permalink: retail-operations.html i18n_link: 2691 updated: 2021-01-29 #--- article key-values ---# collection: default_topiccluster t_keyword: Retail Operations tags: Retail Operations, Order Management Software type: pillar page_id: 2691 hreflang_id: 2691 child_id: [2707,2716,2717,2715,2713,2708] date_published: 2021-01-29 date_modified: 2021-01-29 #--- javascript schema ---# javascript_schema: - script: jquery_3_2_0_min - script: bootstrap_min - script: article_infinite_scroll - script: article_mix_infinitescroll - script: article_mix - script: article_mix_faq - script: article_mix_toc #--- section schema ---# section_schema: - section: nav-main_menu - section: article_body_v2 - section: footer - section: schedule_demo_cta #--- page key-values ---# meta_tags: t_meta_title: Guide to Retail Operations - From Inventory to Customer Management t_meta_description: By properly managing retail operations, businesses can streamline daily procedures to improve customer service, inventory management, and profitability. t_meta_abstract: By properly managing retail operations, businesses can streamline daily procedures to improve customer service, inventory management, and profitability. i_meta_image: article_body: json-ld_article: v_date_published: 2021-01-29 v_date_modified: 2021-01-29 author: p_author_id: 113 t_author: Chloe Henderson p_author_url: chloe-henderson.html i_author: 113.jpg t_author_description: Chloe received a bachelor's degree in journalism and mass communication from Ashford University and is currently a digital content creator for Hubworks. In her free time, she enjoys acting, writing, and spending time with family. p_author_facebook: //www.facebook.com/HubWorksApp p_author_twitter: https://twitter.com/HubworksApp p_author_linkedin: p_author_instagram: feature_snippet: p_type: text t_title: t_description: content: heading: t_title: Guide to Retail Operations - From Inventory to Customer Management t_description: By properly managing retail operations, businesses can streamline daily procedures to improve customer service, inventory management, and profitability. image: i_image: guide-to-retail-operations-from-inventory-to-customer-management-1609798615-2721.png t_image_description: retail store operations v_image_attribution: //pixabay.com/photos/down-jackets-clothes-shopping-store-1281699/ v_image_license: Creative Commons Zero v_video: paragraphs: - t_headline: t_text: A lot of work goes into maintaining a retail business, from customer to product management. The journey may begin when customers step foot in a store, but it doesn't end once their order is fulfilled.

Retailers have to juggle procurement, data collection, physical maintenance, and various sales channels simultaneously behind the scenes to ensure shoppers have the best experience.

While retail operations entail numerous manual and digital processes, it is vital for keeping systems running smoothly at all times. Therefore, owners must take the time to understand the requirements for maintaining a healthy workflow. p_headline_type: h2 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: What are Retail Operations? t_text: Retail operations refer to the various functions and tasks that need to be performed to maintain a store. The term often varies in meaning depending on the employee. For example, retail operations for a cashier may involve conducting transactions, helping customers, and maintaining the cash drawer.

Generally speaking, retail operations include standard processes that take place daily, such as-


However, at a closer perspective, it includes the responsibilities of establishing a retail store, including-

p_headline_type: h2 image: i_image: what-are-retail-operations-1609814841-7493.png t_description: Retail Operations v_attribution: Retail Operations v_license: Unsplash.com callout_text: - t_headline: t_text: Larger companies may have even broader retail operations between their different departments, from finance to human resources. These processes could exist at both the corporate and store levels.

Originally, retail operations only applied to traditional brick-and-mortar stores as that was the primary platform. Now, with e-commerce stores, the term encompasses all functions needed to provide goods and services online as well. This includes processes performed by IT managers and workers at the distribution centers.

Regardless of the platform a store is established on, there are six mandatory operations-

p_headline_type: h2 image: i_image: what-are-retail-operations-1609814841-6857.png t_description: Retail Operations v_attribution: Retail Operations v_license: Unsplash.com callout_text: - t_headline: 5 Stages of Retail Operations t_text: Given the broad definition of retail operations, businesses need to narrow down which processes are most important to their store. This often depends on the store's sales channels, customers, goods, and services.

The five primary operations that retailers typically handle daily include- p_headline_type: h2 image: i_image: 5-stages-of-retail-operations-1609814841-6813.png t_description: Retail Operations v_attribution: Retail Operations v_license: pexels.com callout_text: - t_headline: Sourcing t_text: Sourcing is the task of determining which suppliers are best for the store. This means that the vendor must be-


By ensuring suppliers meet this criterion, retailers can maintain appropriate stock levels to meet customer demand at all times. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Storing t_text: Since most items experience some shelf time before being sold, retailers need to store the bulk of their inventory in a warehouse.

Retail storage must maintain the products' quality at all times to reduce the risk of theft and damage. This means the stock should be stored in secure locations that can be locked.

Perishable and sensitive items may require more strict accommodations, such as temperature-controlled rooms, to minimize the threat of spoilage. Other products may also be sensitive to light and moisture.

Storage should optimize inventory organization for easy retrieval to reduce the travel time for product pickers. The more accessible the items are, the more efficient the fulfillment and delivery processes will be. p_headline_type: h3 image: i_image: storing-1609814841-3463.png t_description: Retail Operations v_attribution: Retail Operations v_license: pexels.com callout_text: - t_headline: Managing t_text: Adequate inventory management regulates the flow of products in and out of the store, to maintain healthy stock levels at all times. This ensures that stores can meet fluctuating customer and market demand to increase sales and profits.

It also prevents overstocking products, which can lead to increased spoilage and inventory expenses.

By prioritizing inventory management, retailers can improve visibility into their supply chain and optimize their operational efficiency. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Staffing t_text: A business's workflow depends solely on its employees. Therefore, if there are too few or too many workers, companies may experience lagging systems or even duplicated tasks, significantly reducing operational efficiency.

Proper staffing ensures that there are just enough employees to perform retail operations without overcrowding work areas. It also verifies that workers are experienced and qualified to complete tasks correctly.

Otherwise, companies may find themselves spending more money on training sessions and reconciling discrepancies from poor employee performance than actual retail operations. p_headline_type: h3 image: i_image: staffing-1609814841-4216.png t_description: Retail Operations v_attribution: Retail Operations v_license: pexels.com callout_text: - t_headline: Serving t_text: Customer service is among the top priorities of every retail business, as income depends on how well they can help their shoppers. However, customer service can look significantly different between stores, depending on their-


Retailers must know precisely what their consumers want and expect from a business to fulfill their needs adequately. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Product Inventory Responsibilities t_text: There is a lot that goes into inventory management in order to balance supply and demand. Efficient product replenishment means retailers can maintain stock levels for each product line to minimize unnecessary storage expenses and promote sales.

Therefore, items with fast turnover rates will require more purchase orders than slow-moving inventory.
Inventory management has several functions, including- p_headline_type: h2 image: i_image: product-inventory-responsibilities-1609814842-8998.png t_description: Retail Operations v_attribution: Retail Operations v_license: pexels.com callout_text: - t_headline: Ordering Merchandise t_text: Sourcing products requires extensive knowledge of products' average sales, turnover rate, customer demand, and market prices. Inventory managers need time management skills to optimize logistics planning to avoid overstocking and understocking warehouses.

Managers ordering merchandise also need to consider procuring product variances, such as different colors, sizes, features, and price points, to give customers more options.

With an automated inventory ordering solution, companies can connect their management systems to forecast replenishment needs. By integrating all software, inventory data collected by the point-of-sale (POS) and warehouse systems can trigger an automatic merchandise order whenever levels hit their reorder points. This prevents stockouts, which can lead to lost sales and backorders. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Receiving Stock t_text: After placing a purchase order, businesses need a system to receive shipments efficiently.

Employees should be able to correctly and quickly cross-examine purchase orders, shipping slips, invoices, and physical inventory to ensure all products are present and undamaged. These documents should be filed properly in an inventory management system for future reference.

Only then should workers unbox and stock the products in the warehouse. p_headline_type: h3 image: i_image: receiving-stock-1609814842-4003.png t_description: Retail Operations v_attribution: Retail Operations v_license: pexels.com callout_text: - t_headline: Using an Inventory System t_text: The three primary inventory systems are-

p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Pricing t_text: Stores typically establish product prices based on competitors' models, customer demand, and market trends to ensure shoppers are willing to meet the asking price. Pricing also includes calculating discounts for slow-moving products and seasonal promotions to boost sales. p_headline_type: h3 image: i_image: pricing-1609814842-3196.png t_description: Retail Operations v_attribution: Retail Operations v_license: pexels.com callout_text: - t_headline: Product Handling t_text: Merchandise handling involves everything from stocking shelves to shipping items to consumers. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Retail Administration Responsibilities t_text: Administration encompasses many operations outside of clerical work, including- p_headline_type: h2 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Managing the Facilities t_text: Stores should remain in working condition at all times. This includes keeping the facilities clean and workstations organized. With poor maintenance, customers may take their business to retailers that invest the care to maintain hygienic facilities.

Retailers should regularly clean their-

p_headline_type: h3 image: i_image: managing-the-facilities-1609814842-8317.png t_description: Retail Operations v_attribution: Retail Operations v_license: Unsplash.com callout_text: - t_headline: Training Employees t_text: Given the quick turnover rates of the average retail job, businesses must ensure employees are appropriately trained. Workers should understand basic customer service procedures, from handling stock to completing transactions. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Managing Promotions t_text: Many stores rely on seasonal promotions and markdowns to drive sales and profits. Without occasional discounts, retailers are forced to hold on to or dispose of the outdated stock. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Data Management t_text: By using the latest technology, businesses can streamline data exchange through automation tools, such as barcode scanning. With POS software, retailers can even collect customer information from every transaction. This enables marketing teams to create targeted promotions, boosting engagement, and sales.

Collecting relevant data also enables analysts to pinpoint bottlenecks within operations to improve workflow and resolve discrepancies. p_headline_type: h3 image: i_image: data-management-1609814842-3582.png t_description: Retail Operations v_attribution: Retail Operations v_license: unsplash.com callout_text: - t_headline: Customer Service Functions t_text: Although customers are not always right, they must be treated respectfully if retailers want to increase potential sales. Stores that have excellent customer service not only increase their competitiveness but have the option of increasing their pricing also, as shoppers are willing to spend more for a better experience.

While many people picture customer service as employees helping shoppers in traditional brick-and-mortar stores, online retailers also must prioritize the customer experience. Many companies use automatic chatbots to answer customers' questions and help browsers locate items.

Aside from assisting consumers, customer service also entails establishing comprehensive policies. For example, many shoppers are only willing to make a purchase if they know they have the option of returning, exchanging, and getting a refund for the product if needed. p_headline_type: h2 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: t_text: The most successful retail stores thoroughly train employees to treat customers respectfully, provide assistance, and perform transactions.

To gain a better understanding of the different customer service elements, management should ask themselves-

p_headline_type: h2 image: i_image: customer-service-functions-1609814842-8320.png t_description: Retail Operations v_attribution: Retail Operations v_license: Unsplash.com callout_text: - t_headline: Retail Operations Best Practices t_text: Whether working in the store or supply chain, there are various ways retailers can improve their operations- p_headline_type: h2 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Optimize the Warehouse Layout t_text: To streamline workflow, businesses should organize their warehouse by placing popular items closest to the order fulfillment centers and slow-moving products in storage.

This reduces travel time for product pickers, decreasing lead times. Managers should also consider storing items that are commonly bought together close to one another. p_headline_type: h3 image: i_image: optimize-warehouse-layout-1609814842-4116.png t_description: Retail Operations v_attribution: Retail Operations v_license: unsplash.com callout_text: - t_headline: Perform Cycle Counts t_text: By regularly performing cycle counts, retailers can mitigate risks and determine the cause of discrepancies. This significantly improves inventory data accuracy, so businesses can better understand their needs.

Companies that use inventory management software can streamline cycle counts with automation tools, eliminating the need for manual data entries. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Enhance Ordering Strategies t_text: Continuously improving order strategies means retailers can avoid under and overstocking products to maintain profitability during slow and busy seasons. With inventory ordering software, businesses can analyze stock data to determine where, when, and how to source goods to preserve the bottom line. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Utilize Cross-Merchandising t_text: By properly managing inventory data, stores can determine their best and worst selling products. This determines cross-merchandising opportunities that can increase sales and revenue.

For example, relevant accessories and chargers should be stored next to electronic devices to increase the average order value (AOV). p_headline_type: h3 image: i_image: utilize-cross-merchandising-1609814843-7570.png t_description: Retail Operations v_attribution: Retail Operations v_license: pexels.com callout_text: - t_headline: Report In-Store Sales t_text: The first step to driving in-store sales is increasing foot traffic. With POS data, retailers can determine which promotions are attracting the most shoppers and spreading brand awareness. This information allows marketers to expand impactful campaigns to continue increasing the number of new visitors. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Optimize Retail Store Layout t_text: Aside from keeping the store clean, retailers should pay close attention to the customer's shopping journey. By understanding how the average shopper browses products, stores can implement distractions to prevent customers from passing up products.

They can also redesign the layout to draw attention to high-profit items and ensure customers need to walk past new product lines in order to get to popular goods. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Improve Inventory Accuracy t_text: Omnichannel retailers must ensure that they are collecting sales data from each of their channels to prevent stockouts. By integrating management systems, businesses can automatically consolidate inventory data to ensure they meet customer demand and monitor reviews. p_headline_type: h3 image: i_image: improve-inventory-accuracy-1609910627-5414.png t_description: //pixabay.com/photos/canned-food-cans-supermarket-food-570114/ v_attribution: //pixabay.com/photos/canned-food-cans-supermarket-food-570114/ v_license: Creative Commons Zero callout_text: - t_headline: Review Profit Margins t_text: It is crucial to differentiate where each portion of the bottom line is generated. By breaking down profit margins, stores can invest more into channels that successfully increase sales. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: Automate Omnichannel Workflow t_text: Automating workflows ensures businesses are focusing their time and efforts on critical tasks rather than mundane clerical work. This enables managers to improve their employee management, reducing labor costs and increasing profits. p_headline_type: h3 image: i_image: t_description: v_attribution: v_license: callout_text: event_body: json-ld_event: t_name: Employee Scheduling for Restaurant Managers t_description: Attendees will learn how create excellent schedules. The class teaches managers how to estimate the number of employees they need to staff their locations; how to accurately forecast their customer demand; how to quickly and accuaratly write and communicate schedules to employees; and how to evaluate the accuracy and optimization of their schedules to make adjustments. v_start_date: 2022-08-08 i_image: p_location_name: Altametrics Online Webinar Course p_address: webinar.altametrics.com?site=altametrics v_price: 10.00 t_offer_description: Priority Registration v_registration_url: webinar.altametrics.com?site=altametrics ---