Japanese Shop Management Secrets: Control Store Inventory, Improve Product Freshness And Profit Margin

Japanese shop management Secrets

Control store inventory, improve freshness and profitability

Japan

Kawabata Yonosuke: planning editor of Japan Fiber Industry Association, senior consultant of Beijing Shan Gu vision brand image design company.

Last, we summed up the role and responsibilities of buyers.

Now let's discuss the key link of apparel industry -- inventory management.

Inventory is often regarded as "multi edged sword", and excess inventory is called "the root of all evil".

A good combination of store inventory and turnover can bring benefits to enterprises, and on the contrary, it will become the culprit of losses. Therefore, controlling inventory is an important link in improving profit margins.

The basis for increasing profitability is controlled inventory.

Small scale stores, to grasp the amount of inventory, management inventory commodity category is not difficult.

However, with the increase of the number of shops and the expansion of the scale of enterprises, it is inevitable to adopt the organizational operation and digital management system, and digitalization becomes the core of control management.

At this time, the commodity category of inventory is easy to be ignored.

As a result, despite the fact that good sales have been achieved, the inventory of defective and unsalable goods has increased significantly due to the neglect of inventory management.

What is the explanation for this phenomenon? The quality of store inventory portfolios has a direct impact on sales performance.

In addition, some enterprises believe that reducing costs can rest easy, but because of ignoring the specific content of inventory, the profit increase has become a bubble.

Therefore, digital management and refinement of double management of inventory contents are the key elements of improving profit margins.

Inventory turnover is an important indicator of category freshness.

Commodity inventory turnover and commodity inventory turnover days are important indicators of inventory status.

The inventory turnover rate is a common index to examine the efficiency of capital investment, and the turnover days of commodity inventory are indicators of the freshness of commodity inventory.

Commodity inventory days can be used to determine the category of stores.

For example, clothing

The formula for calculating the inventory turnover of goods is the "turnover rate of commodity inventory", which refers to the number of inventory turnover of existing commodities.

That is to say, the ratio of the amount of inventory needed in a given period (usually 1 years) is calculated.

Formula for calculating turnover days of merchandise inventory

The number of turnover days indicates how many days it takes for the existing inventory to be replaced by new products.

The calculation formula is the number of days in a certain period (the number of business days, usually calculated on the basis of 30 days) divided by the turnover rate of goods.

Or use the average amount of inventory divided by sales and multiplied by the number of business days.

Calculating commodity turnover days is an important index to grasp the freshness of goods, sales and inventory balance.

While calculating the turnover rate of goods in store, you must not forget to verify the stock status and grasp the category of goods in stock.