Monday 4 June 2012

Control what you can - Inventory is a prime candidate ...


How to increase sales during tough times…

When the going gets tough, you begin to wonder, what is it that you can do, apart from hoping to get new customers.

Actually, there are quite a few things..

1. Inventory.. Reduce Fresh supply… Evaluate each and every purchase with an eagle eye. I am often surprised, to find owner/retailer hand over this critical responsibility to a few old and trusted employees. They are no doubt doing what they have been doing for many years now.

New Action:- Just ask a few questions when the next order is about to be released and you will surely find orders, which you could avoid placing.

2. Check Inventory.. Check out the age ( less than 30 days, 90 days etc) of the different SKUs that you have, not just on display but even those in your warehouses.

New Action :- Take a stock statement from your computer and go out and physically check, if what the computerised statement which is showing the stock, is actually available and is shown to you . You will be surprised with the answers.

3. Identify..Best sellers …If you can do an analysis of the best sellers in your store, then take out the top 20 % of the best selling SKUs or say the top100 SKUs.

New Action :- Find out if those SKUs are in your store..If you don’t have the knowledge to do that, ask us, we have a specialised service for such analysis and reporting..

Both of us will be surprised, to find , how many of such products which are your best sellers are in your store? Want to take a bet ?

4. Identify the non movers ! If the stock is in your system as part of the highest age stock, ensure that those products cannot be ordered at all ! ( See point 1 above).

New Action :- Brain storm, what all can be done to recover what ever value is left in that “dead stock”.

5.  What is your average inventory value for the past few months. ? What was it last year ? Do you think, you can maintain or improve the performance this year ?

New Action :- Take a training session for your employees on the concept of inventory, inventory holding cost, stock turn and ask for actions/ suggestions

Reward the best ideas and bigger rewards for implementing them. Most Retailers give rewards for sales performance, but rarely do employees get rewarded for inventory control.

Finally :- Try it out ! Inventory management is still in your hands, Purchase is as always, mostly in your customer’s hands ! Selling skills count a lot, but that is for another learning blog in the future...
Oh, lest we forget, as this joke said, how about making a real effort in selling the inventory to the customers ? Really "Selling" the old fashion way face to face ? not displaying, not advertising,
Share your learnings on Inventory with us and win rewards ..
Join us on Twitter,Facebook, Linkedin
Call us and share your challenges in retail on - 0 90 360 365 24. We are eager to help !













3 comments:

Brooke Higgins said...

Identifying best sellers is a strategy that every business owner should adopt in order to increase the sales. luton airport meet and greet

Suzan Baker said...

One way is to remember what you did when you had the same situation in the past. Airport Car Parking UK

Unknown said...

It all depends on the strategies people use for being a best seller.
valet parking gatwick tricky in t

Post a Comment

Twitter Delicious Facebook Digg Stumbleupon Favorites More

 
Design by Free WordPress Themes | Bloggerized by Lasantha - Premium Blogger Themes | Web Hosting Coupons