Managing a franchise’s inventory is nearly identical to managing the inventory of any other company – good inventory management skills are transferable across industries, and it does not matter whether you are running your own business, selling your own product, or operating a franchise and selling someone else’s!
Inventory management is critical whether you are running your own firm or working for someone else’s business. It can also define the success and failure—aka profit and loss of the company—and be the differentiating point of satisfied and disgruntled customers – unfortunately, many organizations, particularly start-ups and small firms, fail to use proper inventory management procedures.
Just start by getting other franchise news and information to know more about how others manage their inventory. Top business franchise magazines give out insights into the leading franchise businesses. Putting effort into inventory management pays off big time in the long run. While some effort may be required, it will not be in vain. There are ways to save the trouble that happens during inventory management. Below are some major initiatives that you can opt to manage your inventory.
Internal Teams of Excellence
When studying franchise opportunities, it is critical to have a ‘big picture’ view of how corporations operate and the parties engaged in each area. To get that idea, start reading franchise business magazines. For example, sales forecasting and product inventory are handled by teams at Batteries Plus, such as the supply chain and product management teams.
They have helped franchisees focus on running their businesses and creating relationships with consumers while the franchisor handles the more time-consuming aspects of inventory management.
When Feasible, Takes an Initiative-taking Approach
If the epidemic has taught us anything, it is that investing in a necessary company is the best way to optimize your return on investment. Even as others were closing their doors, these businesses were able to stay open throughout the peak of the COVID-19 outbreak.
Franchises will be able to stay ahead of their inventory and stock their warehouses to avoid future shortages if they can stay profitable during some of the most unpredictable market shifts in recent history.
Utilizes Vendor Relationships
When franchisees choose an established franchise, such as Batteries Plus, which has been recession-proof for over 30 years, they can be assured that the corporate team has formed strong relationships with vendors and partners over time.
The Batteries Plus team, for example, interacts with domestic vendors every week in addition to dealing with international agencies. This has allowed them to get ahead of the game, with inventory orders already in place for the rest of the year.
Expects The Best but Anticipates the Worst
Things may change in the blink of an eye, as we have learned over the last year and a half. It would be best to look for hopeful franchisees, but do not forget about the fundamentals. Make sure it has a plan in place to keep the firm running and profitable despite any unexpected obstacles that may arise.
Franchisees Are Set Up for Success
Joining a franchise that offers constant support to franchisees will make all the difference in your business. Although experienced company experts are capable of handling everything on their own, they should not have to. Franchisees can avoid big business challenges like inventory shortages by having a robust model in place and team members who are constantly ready to answer inquiries and resolve problems.
When conducting due diligence, make sure you speak with a variety of franchisees, not simply the most successful. Please inquire about the primary success aspects they discovered.
What challenges did they face, and how did they overcome them?
What would they do unique if they started today, knowing what they know now?
What reasons, if any, contributed to their failure, such as poor location, inadequate marketing, and so on?
How long did it take them to begin making money?
It is fantastic to be able to learn from your mistakes. It is much better if you can learn from others’ mistakes, so you do not make the same mistakes.
Better Store Administration
Selling your franchise also attracts more accomplished and motivated candidates. Unlike owning a business, the franchisee is responsible for everything and representing your company. This is an excellent combo in most circumstances. The franchise stands to lose just as much as you do, if not more. As a result, it might be a valuable asset to your company.
With a traditional business structure, this is less likely to happen. Employees are frequently less motivated and have a lower personal stake in the company’s success.
Foundation of Good Inventory Management
If you’re a franchisee, there’s a good chance you already have an inventory management system in place. If not, it’s something to think about and advise those in charge of making decisions!
After all, you’re responsible for your franchised business’s performance, so there’s no harm in taking the initiative and implementing a good system if one doesn’t exist or is ineffective.