WE'RE ALL ABOUT
IMPROVING RETAIL SELL-THROUGH!
A Vendor-Managed Tool Designed for Retailers to Use Monthly
Retail is largely about managing risks. When ordering new products, the retail Buyer needs to answer the following questions: which styles do I order, how many pairs, and when for delivery?
As a result, all retail stores carry three kinds of SKUs …
SKUs that are Just Right:
the quantity-on-hand is justified
by the sell through rate.
SKUs that are Over Stocked:
the quantity-on-hand is too large
to be justified by the sell through rate.
SKUs that are Under Stocked:
the quantity-on-hand is
insufficient to support the sell
through rate. (Reasons for this
condition: backorder and/or
discontinuation.)
Of most interest is when there are SKUs that are concurrently "over here" and "under there." Thanks to our matching tool, both retailers' inventory problems can be solved through a cooperative effort.
Risk centers on buying too many and/or too few. Overs and Unders can be managed only after-the-fact, with our matching tool. There is no crystal ball.
Retailers will be financially better off if the dislocated SKUs are relocated so that the Over Stores have an increased open-to-buy, and the Under Stores are able to fill-into the broken sizes improving the SKUs' potential for sell-through.
Vendors will be recognized as helpful with the issue of risk-reduction, increasing the likelihood that more of a vendor's as yet un-ordered SKUs will be purchased in the future near.