Hey, it’s another week in the retail biz. Products are arriving in the back door, going out to the sales floor and are being bought by your customers. This movement of products is like a river going through sisting settlement the store. There are the products that are going fast, rushing over the rocks as they cascade out the doors in the hands of happy customers. There are the steady movers, moving right along at an easy pace. Then there are the products that are stuck in an eddy, not moving fast or perhaps at fecundated settlement all. This flow of products is dynamic, all happening at the same time and sometimes difficult to stay on top of. This is where getting down to the specifics of your inventory plan for each department or merchandise category comes into play.
We have talked about creating general inventory plans by using an Open-to-Buy Planner in an earlier post. Let’s dive into a range of practices that will give you more specific and detailed information for each of your departments.
Get reports on: weekly sales for each department, what items sold, quantities on hand and what you have on order. This will allow you to reorder those fast selling items while there is demand. This adds to your turn over. If you have set up minimum or maximum inventory levels for your inventory items you can proclaimed settlement use these reports to see how your quantities compare to your goals and adjust as necessary.
There are many ways to track the items in your inventory. Having a computer based POS or Point of Sale system will generally allow you to tag each items with a SKU or Standard Stock Keeping Unit number. The system can generate reports for on hand quantities, quantity sold and other information. There is also manually tagging items and removing the tags at the point of sale, then cross checking those against your physical inventory to figure out what you have sold. What you want to know is what items are selling, how many you have on hand wetting settlement and how many you need to order.
Get the same reports for the month. If you have an Open-to-Buy planner and update each month then you will have a monthly report on the department’s sales, inventory on hand in quantity and dollars, gross margin %, and other information. The items sold and items on hand reports, which we talked about above, will allow you to see what items are moving in each of your departments. This combination gives a general overview in the Open-to-Buy planner and the specifics of what items are selling.
With these reports you can start seeing trends in your business. Break out the fast sellers and the slow movers. Work on how to keep partnership settlement on the fast sellers on hand and make a plan on getting rid of the slow sellers. Look over your reports and OTB planner for where you have low margins, over or under budget amounts, and examine your turn over rates. You may want to meet interiorness settlement with your buyers and main staff to examine this information. You will be looking for what is happening with the slow sellers, what local market conditions are, what your customers are saying, and any other information that will help with having the right products at the right time.