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Retail Is Detail!

Three very simple words meaning much more than serving as a cute rhyme!

Today, we’re highlighting three best practices to help you achieve that balance within your stores and better manage your inventory and cash flow for the holidays.

Transfers:
Analyze each store’s weeks on hand at the SKU level to track sell-thru.  Some locations may sell certain SKUs better than others, so transfer product away from the lower producing stores with high weeks on hand into the high volume stores prior to the weekly order pull to minimize the impact on the AR and maximize on sell-thru opportunities. A valuable accessories partner should assist you in reviewing the transfer opportunities but Managers must be willing to follow through that effort.  The expense for the transfer will be much less than having new product via replenishment.

Cycle Counts:
Why is this important?  Let’s think through a few questions…

  • How would you know what is dead stock if you don’t know what you have to what has sold?
  • How would you know what is needed to be ordered?
  • How would your distributor avoid stock out situations?
  • How would your distributor accurately determine sales trend analysis?

Managers should perform weekly counts based on category type: memory cards, data cables, screen protectors, audio, etc.  At the very least, counts should be done before new orders are run through the valued accessories partner.  Managers should ensure they complete one full and thorough monthly inventory count prior to stock model calls/stock balancing to ensure that the information being analyzed is accurate.  At the end of the day, this all impacts what is submitted to the Point of Sale for stock balancing RMAs.

Purchase Orders:
Last but not least, have Managers monitor Purchase Order (PO) statuses to ensure inventory is being received.  Partial receiving of orders can lead to the stores not receiving an accurate order pull from the accessories partner.  In addition, if orders are checked in by the PO rather than piece by piece stores are risking not identifying potential shipping issues such as missing product or wrong product.  Is it more time to spend – absolutely!  Is the attention to detail worth it – absolutely!   Put a different way, if short cuts are taken in receiving product, where else are short cuts being taken that risk a successful business? 

Three very simple words meaning much more than serving as a cute rhyme!

Retail is detail!

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