INDUSTRY INSIGHT STOCK: AN ASSET OR A LIABILITY?
Andy Campbell, independent business development consultant, specialising in the gardening and DIY sectors, provides some tips and advice for good stock management.
W
ith the cost of finance low, it can be argued money tied-up in stock is not a major issue to many
businesses. However, every pound tied-up in excess stock is a pound you don’t have to borrow and pay interest on or could be used to invest and further develop the business. To my way of thinking, efficient and effective stock management is a critical business skill.
Maintaining stock levels The skill is in maintaining optimum levels. Too low runs the risk of going out of stock, missing sales and dissatisfying customers, particularly if the product is highly volatile, seasonal or
weather dependent. Too high can lead
to wasted retail space, requiring storage space with stock needing to be moved and costing money to double-handle. Equally, excess stock can lead to mark-downs and wastage, particularly if perishable or with a limited useful life. The starting point has to lie with the initial ranging decisions, asking the question “will this sell?” and a reasonable assumption of the rate of sale made. If the average level of sale is expected to be one a week and the pack count is 18, then one outer is likely to last well in to next year if it is a seasonal product. Small businesses are unlikely to be able to influence large manufacturers to change their case size, but going through this thought process may make you challenge yourself whether to stock the line in the first place. Alternatively, it may
CKI launches exciting Highlight 2021 promotion
Running until 30 April 2021, Carl Kammerling International’s exciting Highlight 2021 promotion offers retailers and consumers fantastic savings on its leading range of C.K Magma tool storage solutions. Highlight 2021 offers new and existing customers a choice of two levels of buy-in – Entry Level and Range Level. Plus there’s a Replenishment Level for subsequent orders, with customers benefiting from great discounts at all levels. Driving footfall into retailers forms a key part of Highlight 2021 and includes a consumer advertising
campaign, together with eye-catching POS materials to increase demand in-store. The campaign also features a strong emphasis on Social Media, designed to engage consumers and further drive sales. Entry Level (MAGR1) offers six fantastic C.K Magma products with unbeatable discounts, including: C.K Magma three Pocket Pack; Drill Holster; Tool Pouch; Technician’s Tool Case Max; Technician’s Rucksack; Mini Bag; plus FREE POS In-store Pack with: A Virtual Showroom Poster/ Countermat with active QR Code to access the full catalogue; plus a Window Vinyl with active QR Code and C.K Magma Baseball Cap. Range Level (MAGR2) offers customers nine top selling C.K Magma tool storage products in one fantastic deal. Customers also receive a FREE Large POS In-store Pack including a Virtual Showroom Poster/Counter mat with and active QR Code to access the full catalogue; a 600mm Range Display Board; nine and six inch Flat Hooks; and Window Vinyl with QR Code. Replenishment Level (MAGR3) customers who buy-in to either the Entry Level or Range Level can also benefit from the Replenishment Level, which allows them to re-stock and take advantage of excellent discounts on the full C.K Magma range, with no minimum order value.
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encourage a different way of taking the stock, from a wholesaler who can break bulk, in mixed outers or by combining orders with others.
Right product, right time The next critical issue is getting in to the product at the right time, maintaining appropriate stock levels, then getting out at the right time. As a general principle, it is better to get the stock in on the early side of when you expect the uplift in sales, on the basis that factors beyond one’s control such as good weather can kick-in and you don’t want to be caught out. It gives the opportunity to ‘set out your stall’ to your regular customers and enables you to be ahead of your competitors. When it comes to ongoing stock control the key is good management
INDUSTRY INSIGHT
information, primarily sales and on-hand stock from the EPoS system. A simple process of regular and frequent low-level checking those line that have been heavily shopped will also help. These techniques have to be combined with one’s own knowledge and experience to understand the shape of the sales curve and where you are on it. As far as exiting a product or range is concerned, the secret is to anticipate the tail-off and get out early by taking decisive promotional or price reduction action before the demand ceases completely. This releases the space; the cash tied-up and enables you to move on to the next commercial opportunity. Good stock management is an art as well as a science. It might not be the most exciting retail discipline, but in my experience, it tends to be the one that differentiates the highly profitable ones from the rest.
Andy Campbell is an independent business development consultant, specialising in the gardening and DIY sectors at both the retail and production ends of the supply chain.
C.K Magma launches exciting new Wheeled Rucksack Plus
C.K Magma has expanded its popular rucksack range with the addition of the Wheeled Rucksack Plus (MA2654). This lightweight and compact tool storage solution is ideal for tradespeople travelling to their place of work, or for those who need to access places where climbing and a hands-free approach is needed. The new Wheeled Rucksack Plus combines all the features of C.K Magma’s rucksack tool storage, together with the advantage of a lightweight and durable wheeled chassis and telescopic handle.
The product’s compact size and lightweight design, cleverly incorporates a whole host of other features and benefits including: a spacious main compartment; vertical storage pockets for easy tool access; 39 pockets and holders including space in the base for larger tools; extra comfort padding at the back with storable shoulder strap; padded front storage pocket for iPad/notepad, additional hand tools and documents; and a removable wheel cover to protect clothing. Hardwearing, strong and durable, C.K Magma’s wide range of cutting-edge tool storage products are built to protect and organise valuable toolkits, with great features and benefits designed to suit everyone’s needs.
n For more information call CKI customer service on 01758 704704 or visit
www.carlkammerling.com
JANUARY 2021 DIY WEEK 25 JANUARY 2021 DIY WEEK 25
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