Guide
Stock and trade checklist for inventory management
This stock and trade checklist keeps a furniture retailer's inventory accurate and working. It covers the daily, weekly, monthly and quarterly tasks that protect cash and margin. Use it alongside stock-and-trade practices.
Part of the trade furniture series.
Daily
- Record sales and receipts
- Check incoming deliveries against orders
- Log damaged or returned items separately
Weekly
- Review best-sellers against stock levels
- Place reorders at reorder points
- Update online availability
Monthly
- Sell-through by item and category
- Days on floor for each piece
- Margin by item (margin guide)
- Flag slow movers for action
Quarterly
- Full stock count
- Review range: keep, test, drop
- Review suppliers and terms
- Reset reorder points
How do you set reorder points?
Reorder point = expected sales during the supplier's delivery time + a safety buffer. With a supplier holding Canadian stock and short delivery times, buffers can be smaller, freeing cash. Review the numbers each quarter as sales patterns change.
How do you handle slow movers?
Give new lines a fair trial, then act: move them to a better position, include them in a room set, mark them down or bundle them. Don't let them sit for a whole season.
Which tools help?
Inventory software such as Fishbowl or QuickBooks, or the inventory features in Shopify and Square. Quality systems such as ISO 9001 help larger operations standardize processes. See tools for managing stock and trade operations.
Common inventory management mistakes
Reordering by gut feel, holding slow movers too long, not counting damaged stock separately, letting online availability drift from real stock and buying deep on new lines before they're proven.
How does inventory management differ for dropshipped lines?
Dropshipped lines don't sit in your stockroom, but they still need managing. Keep supplier stock data synced to your store, hide items automatically when they sell out and review supplier delivery performance monthly. Track which dropshipped products sell steadily: those are candidates to bring into stock at a deeper bulk discount.
Which inventory reports should you review?
| Report | Frequency | Action |
|---|---|---|
| Best-sellers vs stock on hand | Weekly | Reorder |
| Slow movers | Monthly | Reposition, mark down or drop |
| Margin by item | Monthly | Adjust pricing or supplier |
| Stock value by category | Quarterly | Rebalance the range |
| Damaged and returned stock | Monthly | Claim, repair or clear |
How can suppliers reduce stock risk?
Order from a no-minimum supplier and dropship the long tail. Artisan accounts can order single pieces at 25% off MSRP, so stock levels can stay lean.
Frequently asked questions
What is a stock and trade checklist?+
A list of the regular tasks that keep a retailer's core range accurate, available and profitable.
How do you create an inventory checklist?+
List daily, weekly, monthly and quarterly tasks for counting, reordering, reviewing and reporting, and assign an owner to each.
Why is inventory management important?+
It keeps best-sellers in stock, limits cash tied up in slow movers and protects margin.
How do you set reorder points for furniture?+
Set the reorder point at expected sales during the supplier's delivery time, plus a safety buffer; review it each quarter.
What inventory mistakes do furniture retailers make?+
Reordering by gut feel, holding slow movers too long, not tracking damaged stock separately, letting online availability drift and buying deep on unproven lines.