The Shared Inventory Conundrom – Retail Sales & Inventory Reporting

By Jim Lewis, CEO Improved Retail Remedies LLC

For a lot of many years we have worked with clients and brand names that promote the exact same SKUs to many retail shops. They share a popular stock which can make anticipating long term requirements a problem. Some suppliers give a forecast, but most assume suppliers to sustain plenty of inventory to maintain them in business. And now with numerous models going immediate to consumer by way of their personal internet sites, managing shared inventory is even more of a problem.

Standardizing Data

The important to getting a deal with on shared stock is to develop a bottoms-up forecast by SKU by retail account. Not just what is expected to offer, but how much every retailer will have to have to obtain to sustain their design inventory. To do that you will require POS information for every single account, a seasonality profile, and any recognized planned promotions. All those last 2 components can be distinctive dependent on the retailer’s philosophy. If product sales are not available, you can use earlier shipments. Making use of a desire setting up method or your inner system, derive month to month inventory specifications by retail account.

Reservations

Most suppliers deliver an inventory report that only offers total units accessible and doesn’t split it down by retail account. I have nonetheless to see an off the shelf stock technique that handles the allocation or reservations by retailer agony issue. Still, it demands to be finished. A ledger with obtainable to provide and get the job done in course of action by retail account wants to be stored. Mainly, a reservation ledger. Reservations by SKU by retailer can be achieved in Excel, employing a tab with all the information and a pivot table to offer the facts and overall. If I misplaced you there, call us and we can enable you.

Status

Yet another essential aspect to managing shared inventory is communication. If your organization has numerous salespersons, they may perhaps just about every be trying to offer the exact inventory. They need to know what the story is with each individual item. You can do that with a excellent position program. The standing can be reflective of the frame of mind towards the inventory. For instance, “S” could suggest strict- reserved by account. “F” could suggest versatile, check reservation first, or “O” for open, denoting there are no reservations, and all can be marketed. The status can be managed in the inventory ledger mentioned higher than.

Finishing the Ledger

The ledger can be accomplished by including in the present ATS (readily available to sell) and manufacturing facility orders aligned by month. Then you can do the math to undertaking inventory positions at the conclusion of just about every month. Each individual corporation is different, but the principle is to break every thing down at the lowest degree. Exception stories can be derived from the ledger- stock that has not been taken when predicted or projected beneath or about cases.