Retail Inventory Management

Retail Inventory Management

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  RETAIL INVENTORY MANAGEMENT PROCESS YAVUZANIL TEMUÇİN
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  • Managing stockas a retailer is a vital task. • Stock management grows more and more complicated with the increase of sales volume and diversification of product assortments. • Effective and efficient stock management methods are critical to reach an optimum level in terms of stock quantity. STOCK MANAGEMENT
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  POINTS TO CONSIDER CONTROL AND TRACK  SYSTEM AND DESIGN  DOCUMENTATION  REPORTING  COORDINATION  PRECAUTION  FLEXIBILITY  ANALYSIS AND METHODS
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  CONTROL AND TRACK -Hold stocks. - Hold products in the store for the customers. In this case the stock accuary is very important. - Decrease to the minimum all problems and inventorize periodically. - Orders should be followed up and physical stocks should be confirmed.
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  SYSTEM AND DESIGN -Stock layout can be changed for campaign and discount situations which gain quickness, that stock turnover raises. - Active construction should be established and whole stores should take action. In this situation the optimum layout should be arranged. - New technologies provides lots of new tools which are “RFID” can check your stock accuary instantly.
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  - Shelf systemfor products should be arranged and whole users should use it. - Product stocks can be constituted like locational which can be feeded. - Stocktaking should be done with handled terminal. - Overstock or under stock situations, automatical transfer system can be constituted, in this way you can do delivery plan and stock feeding according to store sales. - Stock status and order situations should be defined transparently. SYSTEM AND DESIGN
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  DOCUMENTATION - Documentation mustbe very efficient. Goods entrance and issue must be controlled according to the procedures. - Delete jobs which are based on experience only, and turned them into systematic tasks. - Stock accuary must be synchronized with system. System mistakes should be detected, and resolved. - Procedures for cancels and returns should be defined. - Job descriptions should be fixed.
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  - Reports shouldbe done for whole products category. - The company should have efficient database and access to updated knowledge about products. - Data should be valid, and the updates should be automatic REPORTING
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  COORDINATION - Products whichare sold rapidly and slowly should be analysed very well. - Stock and order management should coordinate together. - Amount of stock in the sales field and in the warehouse should be balanced. - Warehouse of store feeding place should be updated and should support sales.
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  PRECAUTION - Amount ofsafety stock should be arranged for the unexpected times. - Seasonal products should be defined so precaution for the future will be more efficient. - Supplier products should be counted and controlled for the compliance to the set specifications in order to prevent likely errors.
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  - New productsshould register immediately and without errors. - Whole employees should enter same door and check their bags. - Check garbages to prevent steal product from trash. - Alarm system should be updated. - Sample products should be registered. - Prevent illegal sales. PRECAUTION (THEFT)
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  FLEXIBILITY - Stock controlsystem can be different for each stores. So product Portfolio can be arranged for each stores too. The most important thing is stock accuary and respond in time. - Hot sellers quantity should be raised. The layout should be arranged for outbound speed. - Technology products should have life time. - Company should give fast reaction when shock times come.
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  ANALYSIS AND METHODS -Priorities should be chosen. - You should find a solution for orders. When will you order or How much will you order? - Stocks should be tracked all the time and these two construction should be synchronised. - Stock management method should be optimum for the company.
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  PRE-ORDER LEVEL - Theamount of stock is known. When the stock comes some level company should give an order again. - This pre-order level takes a value between a minimum and a maximum limit. But this method can not be used for all products. Because in real life the demand is independent and is affected from lots of variables. - Also campaigns and discounts can not give possibility to use this method constantly. Generally it can be useful, but for different situations can be implementable various methods.
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  - This analysis,examine the past values and help predict the future . - It is always useful to forecast stochastic process. - Ultimately the real datas are used to help find value which is the nearest to future value. - AR-MA, ARIMA, ARCH, VECM, GRANGER and GARCH these models can be used to predict the future. TIME SERIES ANALYSIS
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  TIME SERIES ANALYSIS Amount of Stock  Demand  Scope Volume (m3)  Amount of Delivery  Costs These variables can predict the nearest value for future. After results, future plans can be constituted.
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  ABC ANALYSIS - ABCanalysis is an inventory categorization technique which prioritise products. - Holding valuable products will raise stock costs. These products should be controlled frequently. If quantity raises, control products will raise too. - ABC analysis sorts and categorize products with sales values. In this way the control point will be arranged. - ABC analysis can be used for delivery quantity and frequency.
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  REGRESSION ANALYSIS - Regressionanalysis can be used to find a relationship. - Regression model should be established with suitable variables. - After analysis results which gives constants that will forecast future values.
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  • It canbe used for annual stock raising. • Stock costs ratio can be predicted. • Factors which are affecting amount of stocks can be formulize with logical constants. • After measured past values dimensions and delivery quantities that can help to create future plans. REGRESSION ANALYSIS
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  YAVUZ ANIL TEMUÇİN THANKYOU!