Check your assumptions Most in retail believe:More options mean more sales. They are wrong. Having too much inventory can be detrimental to a business. Excess inventory ties up capital that could be used in other areas of the business. It can also lead to storage and handling costs. Excess inventory can Read more…
Any tool is only as good as the process it automates.Automating wrong processes will give you wrong outcomes.Test your process / fit before you scale up. 𝗧𝗵𝗲 𝗕𝗶𝗴𝗴𝗲𝘀𝘁 𝗖𝗵𝗮𝗻𝗴𝗲 𝗶𝗻 𝗦𝘂𝗽𝗽𝗹𝘆 𝗖𝗵𝗮𝗶𝗻 𝗛𝗮𝘀 𝗡𝗼𝘁𝗵𝗶𝗻𝗴 𝘁𝗼 𝗗𝗼 𝘄𝗶𝘁𝗵 𝗧𝗼𝗼𝗹𝘀 Forget about fancy tools and shiny new gadgets – the biggest change Read more…
Demand shaping aims to smooth out peak demand, whileDemand shifting redirects demand to different products. – Demand shaping involves adjusting the timing of sales to reduce peak demand, for example, offering discounts during off-peak hours. – Demand shifting involves changing the product mix to appeal to different customer segments, for Read more…
Market-driven systems are better than supply-driven systems because:– They allow for competition, which can lead to lower prices and better products– Companies in a market-driven system must innovate and improve their products to attract customers– They are more responsive to changes in consumer preferences Supply-driven systems are not as good Read more…
What’re cash flow issues? – Inability to meet financial obligations– Difficulty paying bills– Insufficient funds for expansion– Lack of working capital– Inability to take advantage of new opportunities– Difficulty obtaining financing– High levels of debt– Insolvency– Poor creditworthiness– Inability to pay dividends to shareholders– Difficulty retaining employees– Reduced ability to Read more…
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…
In case the warehouse has limited stock :Don’t send more stock to the ‘best-performing store’. Send instead limited stock where you have the best chance of selling the particular SKU. Give stock without starving stores as much as possible. For instance, let’s say that the total stock required is 10 Read more…