By Jim Lewis, CEO Increased Retail Alternatives LLC
For numerous years we have labored with customers and models that offer the exact same SKUs to multiple retail outlets. They share a typical stock which can make anticipating long term requirements a obstacle. Some shops supply a forecast, but most assume suppliers to retain adequate stock to continue to keep them in organization. And now with quite a few manufacturers going immediate to purchaser by using their possess sites, running shared inventory is even additional of a problem.
The important to receiving a handle on shared inventory is to develop a bottoms-up forecast by SKU by retail account. Not just what is expected to sell, but how considerably every retailer will need to have to get to retain their model stock. To do that you are going to require POS info for every single account, a seasonality profile, and any acknowledged planned promotions. Those people last 2 aspects can be distinctive relying on the retailer’s philosophy. If income are not obtainable, you can use past shipments. Using a desire setting up system or your internal approach, derive every month inventory specifications by retail account.
Most suppliers make an inventory report that only gives complete units accessible and doesn’t split it down by retail account. I have however to see an off the shelf stock program that handles the allocation or reservations by retailer ache place. Still, it requirements to be done. A ledger with out there to provide and work in system by retail account demands to be saved. Mainly, a reservation ledger. Reservations by SKU by retailer can be accomplished in Excel, using a tab with all the information and a pivot table to offer the facts and whole. If I missing you there, contact us and we can assist you.
One more important factor to running shared stock is communication. If your corporation has various salespersons, they may possibly just about every be striving to promote the identical stock. They want to know what the tale is with each individual merchandise. You can do that with a great status technique. The position can be reflective of the mind-set in the direction of the stock. For instance, “S” could indicate demanding- reserved by account. “F” could signify adaptable, test reservation very first, or “O” for open up, denoting there are no reservations, and all can be offered. The standing can be maintained in the inventory ledger described earlier mentioned.
Finishing the Ledger
The ledger can be concluded by introducing in the existing ATS (out there to offer) and factory orders aligned by month. Then you can do the math to job inventory positions at the finish of every month. Each firm is unique, but the notion is to crack almost everything down at the most affordable level. Exception reports can be derived from the ledger- stock that has not been taken when predicted or projected below or over cases.