A lot of inventory management advice will set you up for failure. Here are 5 things you should ignore if you are getting started 𝗠𝗶𝘀𝗰𝗼𝗻𝗰𝗲𝗽𝘁𝗶𝗼𝗻 𝟭.Always maintain high levels of safety stock to avoid stockouts.𝗗𝗼 𝘁𝗵𝗶𝘀 𝗶𝗻𝘀𝘁𝗲𝗮𝗱:Safety stock is important.But maintaining high levels of it can actually lead to excess Read more…
There are several challenges that a jewellery retailer may face: 1. 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻: There is a lot of competition in the jewellery industry, and it can be difficult for a retailer to stand out in the market. 2. 𝗣𝗿𝗶𝗰𝗲 𝘀𝗲𝗻𝘀𝗶𝘁𝗶𝘃𝗶𝘁𝘆: jewellery can be a significant purchase for many consumers, and price Read more…
Challenge your definitions every day for every SKU at every store. Ensure your head is always available.Keep your belly trim.Cut down your tail. Are you struggling with low inventory turnover or cash flow issues?It might be time to take a closer look at your product mix. Are all products created Read more…
As long as sales are incentivised only for volume sold into the channel and marketing only for market share, companies will never become demand-driven.To make the move on demand-driven initiatives, companies must focus on profitable sales through the channel. We want to shorten our response time to market, achieving better Read more…
We need to use the below execution processes to align supply chain with actual demand: 𝐃𝐲𝐧𝐚𝐦𝐢𝐜 𝐁𝐮𝐟𝐟𝐞𝐫 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 Reality is dynamic. Challenge Inventory norms (targets / buffer) of every SKU throughout the supply chain every day. Based on demand and supply patterns, adjust norms. This will align inventory with actual demand. Read more…
We need to use the below execution processes to align supply chain with actual demand: 𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲 𝐀𝐠𝐠𝐫𝐞𝐠𝐚𝐭𝐢𝐨𝐧 Store inventory higher up the supply chain. Give only as much inventory as is the immediate need of the store. Keep rest of stock in warehouses. This will allow the stock to get replenished to Read more…
Many businesses consider alignment to forecast as their primary metric to become better.I believe that this metric is putting you on the wrong path. Instead,Build your processes and supply chain which can quickly identify what the customer needs. And supply to each store or warehouse exactly what THAT location needs. Read more…
Learning from the last 2 decades in retail. 1. Focus on shortening your lead time, and 2. Effective execution. Forecasts are predictions about what will happen in the future. Even though they are not always correct, we still need to make them to plan for the future. In retail, we have to Read more…
Stockouts can be defined as the unavailability of specific items or products at the point of purchase when the customer is ready to buy. Many retailers underestimate the cost of stockout by as much as 300%. Focusing on increasing availability of your merchandise can be the single biggest leverage for a Read more…
Looking to make the perfect cricket team, would you stumble on a Sachin Tendulkar and then ignore him? People say ‘No’ to the above question, but then go ahead and do exactly that in their business! Let me prove this to you. Lets take the case of jewellery industry where Read more…