Small businesses tend to have more trouble with inventory management than large-scale businesses. And that’s not because they have more goods to deal with but more specifics to deal with, i.e., management tips and procedures. A lacking here will be causing more damage to their [...]
Every retail owner knows that cash is the core of their operation. However, due to the daily expenses associated with running a business, as well as those unexpected, yet unavoidable costs that emerge, many entrepreneurs may find themselves in a situation where they’re suffering [...]
If you have a surplus of aged inventory (and most retailers do), recognize that you did not acquire this problem in one day. And it won’t get solved in one day. But, to free up dollars for new purchasing and replenishment, you need get [...]
In Part 1 of this series, we talked about The GAP Analysis, calculating your Optimum Inventory Level (OIL), Memo Stock and your Action Plan. To start part 2 of this series, we will next explain GMROI and how to calculate your OIL for each [...]
Maintaining your best-selling inventory is, without doubt, the most critical area of your inventory control. Fast sellers are often only 5-20% of the average stores inventory but can be responsible for generating up to 80% of all storewide sales. Getting them back isn’t just [...]
The first thing to understand when it comes to determining your Optimum Inventory Level (OIL) is that it doesn't start with inventory. There are three other steps required first to ensure your OIL is calculated accurately rather than based on guesswork and hope. It [...]
If you have a surplus of aged inventory (and most retailers do), recognize that you did not acquire this problem in one day. And it won’t get solved in one day. But, to free up dollars for new purchasing and replenishment, you need get [...]
Before you start purchasing, dive into reports to build a foundation for your buy plan. Look at what percentage of your total inventory is over 12 months of age. That is your report card on buying in the past. Depending on what it shows, [...]
Ebbs and flows are a natural part of running a retail business, and it’s not uncommon for your cash flow —or encounter a downturn–at certain times of the year. Managing these dips and upswings can be a challenge: making sure there is enough cash [...]
Creating an open-to-buy isn’t difficult, but it is time consuming. It is also essential. A monthly open-to-buy acts as the foundation for disciplined purchasing. STEP 1 One of the most important parts of an open-to-buy is the projected sales for the month by department. [...]
