Know your inventory. What is critical for logisticians? One issue is how to format finished goods SKUs into a meaningful structure. This will help you to understand inventory and therefore manage it in a more professional way. This blog is Part 3 of a discussion about managing your inventory. Previously, I introduced the coefficient of variation management (CoVM) model, developed … Read More
Know how your inventory is behaving
Segmenting your inventory. Inventory of finished goods and purchased items is not just items on pallets and shelves, but one of the major drivers affecting the effectiveness and profitability of your business.My last blog opened a discussion about getting to know your inventory and how it behaves. Getting to know anything requires you to break it down to understandable elements … Read More
Inventory up the chain
The decision has been made. In my previous blog I talked about a large retailer with excess inventory and its intention to hold a sale to move more than $100m worth of stock. I observed this would cause other retailers to follow and it has happened. A large variety store chain has announced that $130m of stock must go in … Read More
Too much inventory and losing it
How to lose a lot of money. Being strongly criticised in the media and a lower share price are often the consequences of holding too much or too little inventory. One of those occasions occurred this week, when a major retail chain reported a poor financial result. Commentators hinted that a monster $100m sale will be held soon – not to boost the … Read More
Again it is risk
Apparel manufacturing in Bangladesh. How are risks of doing business evaluated in your organisation – is it a once per year exercise, a response when things go wrong or a strategic responsibility? The recent collapse of a building outside Dhaka and the reported loss of 1,100 lives once again shines the spotlight on the procurement practices of retailers and whether … Read More