Inventory management is the process of tracking, controlling, and optimizing your shop's stock. Poor inventory management leads to either excess stock (tying up cash) or stockouts (losing customers). Good inventory management maximizes both cash flow and customer satisfaction.

The foundation of inventory management is knowing exactly how much of each product you have at any point in time. Traditional methods using registers or Excel sheets fail because they are not updated in real-time. By the time you check the register, the actual stock situation may have changed.

Modern inventory management with software like Dukan Manager updates stock automatically with every sale, purchase, and return. You always see accurate, real-time stock levels without manually counting.

ABC analysis is a powerful technique for managing large inventories. Category A items are your top 20% of products that generate 80% of revenue — these need close monitoring. Category B are mid-range items. Category C are low-value slow movers — minimum management time required.

Reorder points prevent stockouts before they happen. For each product, set a minimum stock level. When stock falls below this level, the system alerts you to reorder. The reorder quantity should cover your typical supplier lead time plus a safety buffer.

Safety stock is extra inventory kept as a buffer against demand spikes and supply delays. For fast-moving items with unreliable suppliers, maintain higher safety stock. For slow movers with reliable suppliers, minimal safety stock is needed.

FIFO (First In, First Out) is the recommended method for perishable or date-sensitive goods. Older stock should be sold before newer stock. Billing software can enforce FIFO automatically during billing.

Barcode scanning dramatically speeds up both receiving and selling. When new stock arrives, scan barcodes to update inventory. At billing, scan products for instant accurate stock deduction. Errors from manual entry are eliminated.

Physical stock counting (stock audit) should be done monthly for high-value items and quarterly for others. Compare the software count against actual physical count. Discrepancies indicate theft, damage, or entry errors.

Dead stock analysis identifies products that have not sold in 60-90 days. These items are tying up your capital. Regular dead stock review helps you take timely action — discount sales, return to supplier, or bundle with fast movers.

For shops with multiple branches, centralized inventory management is essential. Dukan Manager syncs stock across all locations. You can also transfer stock between branches directly from the app when one location runs low.

The business dashboard shows inventory health at a glance — total stock value, low stock items, dead stock percentage, and inventory turnover ratio. These metrics help make better purchasing decisions every week.