Inventory Management

DiverDash's inventory management system helps you track stock levels, monitor product movement, and maintain optimal inventory for your dive center's retail operations. Keep your shelves stocked with the right products while minimizing carrying costs and preventing stockouts.

What You'll Learn

  • How to monitor current stock levels and inventory value

  • How to set up automated reorder alerts and minimum stock levels

  • How to track inventory movement and turnover rates

  • How to perform stock adjustments and physical inventory counts

  • How to analyze inventory performance and optimize stock levels

Before You Start

Make sure you have:

  • Products properly set up in your catalog (product management guide)

  • Appropriate permissions to view and manage inventory

  • Understanding of your product categories and suppliers

  • Knowledge of your sales patterns and seasonal demands

Accessing Inventory Management

Step 1: Navigate to Inventory Dashboard

  1. Go to Retail in the main sidebar

  2. Click on the Inventory tab

  3. The inventory dashboard will display with current stock overview

Step 2: Understanding the Inventory Dashboard

Key Metrics Cards:

  • Total Items - Number of different products in inventory

  • Total Value - Dollar value of current stock (at purchase price)

  • Low Stock Items - Products below minimum stock levels

  • Out of Stock - Products with zero inventory

Inventory Overview Table:

  • Product name and SKU for identification

  • Current stock quantity

  • Minimum stock level (reorder point)

  • Purchase price and total value

  • Last updated timestamp

Monitoring Stock Levels

Current Stock Display

Stock Quantity Column:

  • Shows exact number of units available

  • Color-coded indicators:

    • Green - Adequate stock (above minimum level)

    • Yellow - Low stock (at or near minimum level)

    • Red - Out of stock (zero quantity)

Stock Value Calculation:

  • Individual item value = Purchase Price × Stock Quantity

  • Total inventory value = Sum of all item values

  • Helps track inventory investment and cash flow

Low Stock Alerts

Automatic Notifications:

  • System alerts when stock falls below minimum level

  • Dashboard highlights low stock items

  • Email notifications (if configured)

  • Prevents stockouts and lost sales

Setting Minimum Stock Levels:

  1. Navigate to the product in your catalog

  2. Click Edit on the product

  3. Set Minimum Stock Level field

  4. Save changes to activate alerts

Recommended Minimum Levels:

  • Fast-moving items - 2-3 weeks of average sales

  • Seasonal items - Higher levels before peak season

  • Special order items - Lower levels due to longer lead times

  • High-value items - Conservative levels to minimize investment

Stock Adjustments

Manual Stock Updates

When to Adjust Stock:

  • Physical inventory counts reveal discrepancies

  • Damaged or defective products need removal

  • Found inventory not previously recorded

  • Theft or loss requires stock reduction

Making Stock Adjustments:

  1. Find the product in the inventory list

  2. Click on the current stock quantity

  3. Enter the new correct quantity

  4. Add a reason for the adjustment (optional but recommended)

  5. Save the change

Adjustment Reasons:

  • Physical Count - Correcting based on actual count

  • Damaged Goods - Removing unusable inventory

  • Found Inventory - Adding previously unrecorded stock

  • Theft/Loss - Removing missing inventory

  • Supplier Correction - Adjusting for delivery discrepancies

Bulk Stock Updates

CSV Import for Adjustments:

  1. Export current inventory to CSV

  2. Update quantities in spreadsheet

  3. Import updated file through bulk upload

  4. Review changes before confirming

  5. System processes all adjustments

Best Practices for Bulk Updates:

  • Always backup current data before bulk changes

  • Review import preview carefully

  • Test with small batch first

  • Document reasons for major adjustments

Physical Inventory Counts

Planning Inventory Counts

Frequency Recommendations:

  • Monthly - High-value or fast-moving items

  • Quarterly - Most retail inventory

  • Annually - Complete wall-to-wall count

  • Cycle Counting - Continuous counting of different sections

Preparation Steps:

  1. Schedule during low-activity periods

  2. Organize inventory by location or category

  3. Print current inventory reports for reference

  4. Assign counting teams and areas

  5. Prepare count sheets or mobile devices

Conducting the Count

Count Process:

  1. Physical Count - Count actual items on shelves and in storage

  2. Record Quantities - Write down or enter actual quantities found

  3. Compare to System - Check against DiverDash inventory records

  4. Identify Discrepancies - Note differences between physical and system counts

  5. Investigate Variances - Research reasons for significant differences

Count Sheet Information:

  • Product name and SKU

  • Current system quantity

  • Physical count quantity

  • Variance (difference)

  • Notes section for explanations

Processing Count Results

Updating System Records:

  1. Enter physical count quantities into DiverDash

  2. System calculates variances automatically

  3. Review significant discrepancies before confirming

  4. Add adjustment reasons for audit trail

  5. Generate variance report for analysis

Variance Analysis:

  • Positive Variance - Found more than expected (investigate recording errors)

  • Negative Variance - Found less than expected (investigate shrinkage, theft, damage)

  • Pattern Analysis - Look for recurring issues with specific products or locations

Inventory Analytics

Stock Movement Analysis

Turnover Rate Calculation:

  • Turnover = Cost of Goods Sold ÷ Average Inventory Value

  • Higher turnover indicates efficient inventory management

  • Lower turnover may suggest overstocking or slow-moving items

Fast vs. Slow Movers:

  • Fast Movers - High sales velocity, frequent reorders needed

  • Slow Movers - Low sales velocity, consider reducing stock levels

  • Dead Stock - No movement for extended periods, consider clearance

Reorder Analysis

Reorder Point Optimization:

  • Analyze sales patterns to set optimal minimum levels

  • Consider lead times from suppliers

  • Account for seasonal demand variations

  • Balance carrying costs with stockout risks

ABC Analysis:

  • A Items - High value, tight control needed

  • B Items - Moderate value, standard control

  • C Items - Low value, simple control methods

Profitability Analysis

Margin Analysis by Product:

  • Compare purchase price to sale price

  • Identify highest and lowest margin items

  • Consider inventory investment vs. profit potential

  • Optimize product mix for profitability

Inventory Investment Tracking:

  • Monitor total cash tied up in inventory

  • Track inventory as percentage of total assets

  • Analyze return on inventory investment

  • Plan cash flow around inventory purchases

Reorder Management

Automated Reorder Alerts

Alert Configuration:

  • Set minimum stock levels for each product

  • Configure notification preferences

  • Set up supplier contact information

  • Enable email alerts for purchasing team

Reorder Recommendations:

  • System suggests reorder quantities based on:

    • Historical sales data

    • Lead times

    • Minimum order quantities

    • Economic order quantities

Supplier Integration

Supplier Information:

  • Maintain supplier contact details for each product

  • Track lead times and minimum order quantities

  • Record preferred suppliers and backup options

  • Monitor supplier performance and reliability

Purchase Order Creation:

  • Generate purchase orders directly from reorder alerts

  • Include all necessary product and supplier information

  • Track order status and expected delivery dates

  • Receive inventory and update stock levels automatically

Integration with Sales

Automatic Stock Updates

Sales Integration:

  • Stock levels decrease automatically when products are sold

  • Real-time updates prevent overselling

  • Integration with point-of-sale systems

  • Accurate inventory tracking across all sales channels

Return Processing:

  • Stock levels increase when products are returned

  • Proper handling of damaged vs. resalable returns

  • Adjustment tracking for return reasons

  • Integration with customer service processes

Inventory Reservations

Course Equipment Reservations:

  • Reserve inventory for upcoming courses

  • Prevent selling equipment needed for training

  • Track reserved vs. available inventory

  • Release reservations after course completion

Special Order Management:

  • Track customer special orders

  • Reserve inventory when orders arrive

  • Manage customer notifications and pickup

  • Handle partial shipments and backorders

Best Practices

Daily Operations

  • Regular Monitoring - Check low stock alerts daily

  • Accurate Recording - Record all inventory movements promptly

  • Organized Storage - Maintain organized storage for accurate counts

  • Security Measures - Implement security to prevent theft and loss

Inventory Optimization

  • Right-Size Stock - Balance availability with carrying costs

  • Seasonal Planning - Adjust stock levels for seasonal demand

  • Supplier Relationships - Maintain good relationships for better terms

  • Technology Use - Leverage barcode scanning and mobile devices

Financial Management

  • Regular Valuation - Monitor inventory value and investment

  • Insurance Coverage - Ensure adequate insurance for inventory value

  • Tax Considerations - Understand tax implications of inventory valuation

  • Cash Flow Planning - Plan purchases around cash flow cycles

Troubleshooting Common Issues

Stock Discrepancies

Problem: Physical count doesn't match system recordsSolutions:

  • Review recent sales and adjustments

  • Check for unrecorded transactions

  • Investigate potential theft or damage

  • Verify data entry accuracy

Stockouts

Problem: Running out of popular itemsSolutions:

  • Lower minimum stock levels

  • Improve demand forecasting

  • Reduce supplier lead times

  • Implement safety stock buffers

Overstock

Problem: Too much slow-moving inventorySolutions:

  • Implement clearance sales

  • Improve demand forecasting

  • Reduce order quantities

  • Consider returning to supplier

System Integration Issues

Problem: Inventory not updating with salesSolutions:

  • Check system integration settings

  • Verify product SKU matching

  • Review transaction processing

  • Contact technical support if needed

Effective inventory management is crucial for retail success, ensuring you have the right products available while minimizing costs and maximizing profitability.

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