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Follow on Google News | Six Ways Retailers Can Better Manage Inventory TodayTips for retailers that move product and Keep customers satisfied.
By: ITS Logistics As a third party logistics (3PL) provider, Kasia Wenker of outdoor and cycling industry specialist ITS Logistics often stresses that quality is more important than quantity. Having a multitude of products on the floor doesn’t mean that there will be a multitude of sales. Products and services that are tailored to your customers’ needs will result in more DPT than sheer number of product. Here are 6 easy things retailers can do, today, to meet those objectives: • Inventory control. The general 80/20 rule means you need to stay on top of what’s selling to best manage inventory. o Measure your inventory against the units you sell o Figure out how much stock you have in terms of weeks of sales o On-site stock for slow moving products should be reduced to a minimum. It is taking up valuable space and tying down your cash. o Keep inventory on hand only for high movers o (3PL advantage): Real time inventory management is key, which is where a 3PL increases efficiency, allowing you to manage inventory from a remote location. This technology also allows a 3PL to analyze order data, manage assets and provide guidance to retailers about high and slow movers. • Measure. o Develop a way to forecast inventory, and measure the accuracy of the forecast o Determine how much stock is on hand, and how much has sold in the past week o Measure success, and change estimates accordingly o Shorter the time increments are better – weekly or monthly stock assessments – to react quickly, better serving customers needs o (3PL advantage): A 3PL keeps retailers up to date with stagnant inventory so you know when to cash it out • Relationships. o Develop relationships with suppliers to work together for mutual gains. This can include the oversight of supplies of high movers to avoid out of stocks, and/or working together against manufacturing errors, so you don’t get caught holding the wrong product. o Discuss consumer trends o Give incentives based upon performance metrics, such as shipment speed. o Track accuracy of orders. Service should be perfect and fast for out of stock products or slow movers. o Ensure needs and expectations are understood, o Understand suppliers’ capabilities so you can leverage them. o Agree upon a standard timeframe for shipments, and o Demand a high accuracy rate. o (3PL Advantage): Let a 3PL focus on their core competency-–fulfilling your shipment quickly and accurately at a low-cost rate—freeing up your time, so you can focus on what you do best. • Liquidate. o If you have slow movers that are taking up cash and space, you need to reinvest o Create a budget plan for markdowns, and a plan for execution • sell at reduced cost • donate • destroy • recycle o Same applies to returns: if you can’t resell them at full price, move them o Work with customers who make returns, to find out why they aren’t satisfied and what you can do to prevent it in the future o (3PL Advantage): A 3PL can handle returns and liquidations, so retailers don’t have to add more to their plate • Location. o Place inventory closer to your customers o Select a location that offers optimum service to your customers so that their shipments are expedited and low cost o This will help you process returns faster too o (3PL Advantage): 3PLs often have warehouses all over the country, and should be able to offer a convenient location, or find one for you. • Supply Chain Visibility. o Keep track of product availability, so you’re not caught off guard when supply runs low o Prevent backorders and customer dissatisfaction by talking to suppliers far in advance if you have forecasted needs o (3PL Advantage): 3PLs can alert you when supply is running low, and expedite the process of getting new product to the store. Links: ITS Logistics: http://www.thesportsrunner.com Online Press Release: http://www.pitchengine.com/ About ITS Logistics: Based in Reno, NV, ITS Logistics is a warehousing, distribution and fulfillment company that helps companies distribute goods nationally and globally with superior performance. Please visit http://www.thesportsrunner.com for more information or a free consultation. End
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