Reasonable Control Of Inventory &Nbsp; Improve Cash Flow Turnover

Then, how can we effectively solve the backlog problem of commodity inventory?

"The inventory control of goods is not at the end of the season, but before the purchase of commodities," Shao Ligang, an expert invited by the China Fashion Buyer forum and chief management consultant of the nine party organization, said in an interview.

The way to enable an agent to control inventory effectively is to do a good job of merchandise plan analysis before purchasing merchandise, and then place an order effectively at the order meeting according to the purchase plan.

Generally speaking, the avoidance of merchandise inventory starts from the commodity plan before purchase, and the realization of inventory control is solved in the sales process.

The agent should control the stock through the buying mode of the agent, so that the commodity can achieve the best efficiency of making money.

What is rational inventory?

Is inventory less controlled? The answer from many agents is: the less, of course, the better.

However, Shao Ligang does not think so. "Controlling inventory is not to control inventory to the minimum, but to control inventory to a reasonable state.

Inventory control should be balanced, neither explosion nor excess inventory.

Generally, there are 3 standards for measuring stock: the first is excess stock, that is, excessive orders can not lead to goods being sold; two, the shortage of goods, that is, the shortage of orders, the shortage of goods, and the third dull stock.

Surplus

First of all, a large quantity of inventory usually means that there is a serious problem in commodity control, at least it shows that the money earned has not been pformed into cash flow to the maximum.

Buying agents is the most sensitive and headaches for this problem, which will lead to "black letter failure".

From this perspective, inventory must be controlled to "less".

However, many agents have gone to another extreme: controlling stocks to the minimum state with fewer orders or pursuit of funds.

Many dealers, agents and business owners are also very supportive of this practice, in fact, this is a mistake.

Stock in stock

The so-called money explosion actually reflects the shortage of order quantity.

A small quantity of orders, though it can reduce inventory, seems to control inventory, but the brand has paid a heavy "opportunity loss" price.

For example, the market demand for a particular product has reached 2000, but if only 1500 items are invested, it will inevitably lead to some customers' purchase needs can not be satisfied. Although the goods will show a state of "exploding money" and the inventory rate is very low, the unsatisfied customers will flow to your competitive brand.

Often, in the past, the market share of the brand will be artificially suppressed, and the money earned will be robbed by competing brands.

Dull stock

The two inventory models mentioned above are familiar to everyone. In fact, many people have neglected a very important inventory mode -- stagnant mode.

The impact of stagnant inventory is the efficiency of making money. The sluggish commodity is not sold but slow.

Although the market has a demand for these sluggish goods, but because the agents do not control the market demand at the time of purchase, or do not control the one or two attributes of the 5 attributes of the commodity, the commodity is sluggish.

By adjusting the 5 attributes of commodities, such as money, color, code, material and price, the dull stock may change from dull state to active state.

When adjusting the sluggish time, agents can conduct cross regional and horizontal analysis through effective data in the sales process, then deploy the unsalable goods from the sluggish areas to the active areas, and the overall sluggish state can be improved.

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Solve inventory by two pronged approach

The three stock problems, such as surplus of goods, ungoods and sluggish, are all directly caused by out of control of early order.

Shao Ligang said that if agents can make future commodity plans in the stage of commodity planning or even before, the inventory problem at the end of the season will not happen or keep the inventory within reasonable limits.

Developing effective commodity plans

The commodity plan described here is quite different from the commodity plan understood by many agents. It contains many factors that need to be analyzed and planned in advance, such as purchase amount calculation, release plan decomposition, commodity structure adjustment, commodity attribute analysis, regional seasonal division, and display elements analysis.

In order to achieve effectiveness and integrity, the commodity plan must complete the analysis of these 6 elements.

Therefore, the commodity plan must be built on the basis of powerful data analysis, which is beyond doubt.

"Data can be divided into two main categories: internal data and external data."

Shao Ligang said: "agents must be based on their own actual conditions, take the internal data information as the main reference, and take external data information as an auxiliary reference, so that it is possible to complete the formulation of effective commodity plans.

Internal data information is divided into 3 sub categories, mainly refers to the enterprise in the process of operation of goods purchase, sale, inventory information.

Simply speaking, it is the basic information of goods entering, selling and storing.

Internal information is unquestionable because it is bought by consumers.

The agent buyer can analyze customer preferences through sales data, and can also analyze the real market demand from the perspective of a single store or from a city or even a certain region.

Commodities, especially fashion goods, are seasonal and regional.

Different terminal stores will have different inventory results even after they are sold.

Even if the final inventory amount is exactly the same, the contents of the remaining inventory will vary widely.

Because there are differences in the content of goods sold.

The discovery of commodity problem is based on data analysis of goods entering, selling and storing. Only by finding problems can we solve the problem. Therefore, the analysis of internal data and information by agent buyer is the most effective basis for the formulation of commodity plan.

External data include fashion trend information, competitive brand information and street fashion information.

The trend information is derived from authoritative organizations, popular color associations, fashion associations, professional media, magazines and other popular information; competitive brand information is derived from the information of competitors in the market; street information is the clothing information of the target consumer groups running the brand on the street.

As for the conflict between fashion trends and street information, Shao Ligang said: "for high-end brands, agents need to pay more attention to the popular information released by professional agencies, while for middle and low end brands, agent buyers need more attention to street popularity.

Regardless of high and low end brands, buyers' attention to competing information can not be ignored, because only when we know what we know, can we fight a hundred battles.

Control inventory in sales process

Compared with clothing brand enterprises, agents can only play a management role in two stages, one is the order stage, the other is the sales stage.

In the sales process, agents should also do data analysis and formulate sales strategies according to different inventory conditions, such as speeding up the turnover of goods.

After buying a lot of goods, how much will the agents sell eventually, and how much they sell and how much profit space they sell, all of these are really related to whether the agent and the whole enterprise are making profits.

"Because goods purchased are quantitative, sales will lead to continuous changes in inventory.

It is also said that the purchase volume is fixed, and sales and inventory are constantly changing. This change will affect the future purchase volume in turn.

Therefore, in the sales process, buyers must constantly participate in data analysis.

Shao Ligang said.

By analyzing the data of goods, agents can more accurately grasp which commodities are sold to what state, why they sell well or why they are not good enough to sell, and what goods they should replenish and when they should be replenish and how much they should be replenish.

Of course, these will involve a complete set of data analysis system.

For the value of data analysis, Shao Ligang pointed out: "refined data analysis can improve the overall management of the system, and achieve management efficiency and performance efficiency improvement.

It is also said that sales can still be increased by 15% to 25% in the case of attrition.

Under the double pressure of clothing brand enterprises and channels, the profit margin of agents living in crevice is getting smaller and smaller. If agents want to win a place in the market, they must enhance their core competitiveness. Whoever first completes the systematic overall management and refined data analysis, will have the initiative in the market.