Christmas Article
According to research, the average retailer loses 10% of its Christmas revenue through being out of stock. Every year in the run up to Christmas, shoppers pour into shops and stream onto websites to buy their Christmas lights, and at least one major retailer stocks out of a popular item. When this happens, customers often turn to competitors rather than take the time to order items in, especially close to Christmas. The question is, can retailers afford to stock out when the Christmas shopping period can account for up to half of their annual profits?
Last year retailers including Primark, Debenhams and John Lewis all reported positive Christmas sales figures, but many more reported disappointing sales. While retailers express confidence in increased online sales this year, customers don't have the same expectations .
Retailers need to maximise profit potential by keeping shop floors and warehouses well‐ stocked.
Sarah Heath, Key Account Manager at ediTRACK, gives A1 Retail Magazine her top ten tips for keeping the shop floor decked with stock.
1. Ensure your freight forwarder/s and delivery companies are capable of handling additional capacity. Never try a new freight forwarder or delivery company just before your peak period – always play it safe with your stock.
2. Never implement system changes prior to peak period – this automatically increases potential risk. Plan any changes well in advance to give teams time to adapt. 3. Have alternative delivery methods such as airfreight in place as back ups to your usual means of transport. Be aware of the exact cost of using these alternative methods so as to be able to weigh up the cost benefit. 4. Improve the accuracy of your stock taking and tracking. Use a computerised stock taking system alongside an annual physical count. As a rule of thumb, 80% of demand will be for 20% of your items – so keep a close eye on best‐sellers. RFID and EDI facilitate a continuous check on inventory, enabling you to track items in real‐time from production to point of sale.
36
5. Know your supplier's capacities (i.e. maximum output per factory) and whether or not they can cope with additional demand. Maintain accurate records of suppliers that have additional capability, for example holding stock on standby. Software such as ediTRACK’s Ethical Trade module will capture and store details of the services and garments a supplier can provide. 6. Enable flexible sourcing and vet your suppliers. Supply chain management (SCM) software can provide flexibility when you source goods, and from where you source them from ‐ it might be wise to source from different regions in case of issues or disasters. It can also offer improved communication with supply chain partners. Critical path management through SCM software helps to mitigate disruptions in your supply chain as alerts highlight activities not running to plan. Track your supplier and factory audits with SCM software for improved visibility ‐ checking that your factories and suppliers are working safely and ethically. 7. Ensure effective, clear communication. Using web‐based software can help to keep everyone informed. When the relevant staff have real‐time access to the crucial data (delivery dates, sales figures, order info etc), processes become more streamlined and lead times tend to reduce.
8. Order little and often using the JIT (Just in Time) approach. This can help reduce the risk of under‐stocking and it increases control over stock flow. Retailers like Zara have proven that if you have reliable suppliers who can deliver on demand, then small, regular batches can be more cost‐effective. Keep a
close eye on stock and if sales suddenly soar, you can quickly order in the requisite amount. It can also save on storage costs and free up working capital.
9. Secure your stock and have quality control checks. Keep checks on the security of your warehouses and distributors (CCTV, controlled access). Keep good records of where stock is stored and how much it’s worth. It’s also no use having a huge batch of stock if it’s damaged, as it won’t be fit to purchase. To reduce this, have stock tracking and batch tracking in place for optimal traceability, and have goods quality‐checked at regular points in the supply chain. 10. Predict demand as accurately as possible. When forecasting, there are two key factors to take into consideration: Seasonality, and projections based on past consumer data. To get as accurate a prediction as possible, implement software that collects and analyses data for you, on a dashboard that generates reports at the click of a button. Social media can also help to predict surges in demand. Sarah has over 11 years’ experience working for ediTRACK who develop, implement and host supply chain management systems. With a strong background in sales support and business development she currently manages some of ediTRACK's key accounts which include clients such as ASOS, M&S and Alliance Healthcare.
Contact ediTRACK
+44 (0)1753 485100
www.editrack.com
www.a1retailmagazine.com
A1
Deck your shop with the right amount of stock this Christmas, tra la la la la la la la!
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84