In stock management, the retailer faces a considerable challenge. If you had only one product to sell, managing your stock would be easy, but with thousands of products available to consumers, you have no choice but to offer variety.
Products are relevant and profitable in so far as they meet the needs of your customers. Only a systematic analysis of sales figures, gross profit margins, inventory levels, and returns on inventory investment will determine whether this is the case. As you look over your store displays, one by one, you need to ask yourself a key question for each product you see there: DOES THIS PRODUCT BELONG IN MY STORE?
Whatever our ideas about sales, purchasing, and marketing, we must first acknowledge the fundamental need for profitability. Throughout this course, we will examine the factors influencing the profitability of each of your products by considering the dynamics of inventory management.
Inventory Management for Retailers: The Art of Making the Most of Your Stock | Camille D. Roberge (Author) | Media-coach Publishing inc
Table of contents
Chapter 1: How stock management works
Dynamic Stock Management or the 20/80 Principle, Analyzing Sales, Analysing inventory, comparing sales and inventory, other considerations, Conclusion
Chapter 2: Profit Margins
Profit Margins, The importance of profit margins, influence factors, weighted average profit margins, calculation your gross profit margins, conclusion
Chapter 3: Analysing Profitability
Profitability, Stock turnover, Average stock levels, Yearly turnover, Calculating the stock turnover rate, the impact of turnover rate, Analysing your stock turnover, Conclusion
Chapter 4: Return On Investment
Gross Margin Return on Inventory Investment (GMROI), Fluctuations, Analysing your Return On Investment, Conclusion
Chapter 5: Planning Inventory
Balancing Inventory, The stock to sales ratio, Sales budget, How to budget sales, Preparing a purchase budget, Budget allocation, Refining your budget, Investments, Conclusion
Chapter 6: Special Offers
Special offers or Deals
Chapter 7: Controls
Organizations and Controls
Resources