All About Retailing Blog - This blog tackles the topic of retail technology solutions and key retail trends. One Step Retail Solutions is your one step resource for your retail technology needs.
Showing posts with label inventory control. Show all posts
Showing posts with label inventory control. Show all posts
Tuesday, June 30, 2015
Monday, November 24, 2014
It’s the Most Wonderful Time of the Year!
Written By: Peter Pishko, VP of Operations
If
you are scanning tags verify that your scanner can read your barcodes. I once
attempted a physical and none of my tags scanned and I did not check prior to
the team arriving and so I had to reschedule. It was an expensive mistake I
will never make again.
Remember
this is not something that happens every day and it should be made into a
special event. I always brought in food throughout the day and held a contest
for the team member who found the most items with missing tags etc. The point
is that it is a time for cleaning up and getting on to the next page.
Spring cleaning and setting order is actually happening after the holidays at
the begging of the New Year for most of you because you are setting the tone
for the New Year. Embrace Physical Inventory; it’s the most wonderful thing.
My
apologies to Andy Williams; No, not that time, by the time you’re reading this
post everything is set and you’re off and running in the great holiday race.
Shelves are stocked, everything is decorated and business is booming. I am
writing about the next most wonderful time of the year: Physical
Inventory. The key to a successful Physical Inventory (PI) is
organization. I have some organizational steps that have proven successful in
my past and continue help our customers today.
Start
the old fashion way with pen paper and a calendar.
Timeline:
Select
the dates that you will be performing your physical inventory count. Make
these dates known now so you are not besieged with vacation/time off requests
for that week. Make it a blackout period no one is off. It is very important to
have the support of your staff in getting this task accomplished successfully.
Taking into account your dates, set some guidelines for your purchasing and
receiving areas. You should cut off merchandise delivery for a period of time
prior to your PI (I used to cut off two weeks before my count date). A full PI
is best scheduled during a period of time when your stock levels are at a low
point, obviously less to count and more room for organization of
merchandise. If merchandise is received during this period set it aside
and do not enter it into your system until after you have completed your
counts.
Staffing:
Ensure
that you have allocated adequate staff for the task at hand. The physical count
should be performed by teams of two, a caller and a recorder. The actual
purpose of these individuals has changed from the days of pencil and paper
tallies to having teams give credibility to the actual count in terms of checks
and balances. It speeds the scanning process along as well (if you are using
scanners) and as the count progresses a second count can be completed. It is
easier to verify the electronic count with teams of two and expedite recovery
after the count is completed.
Maps:
Draw
a map of your store. I use graph paper but this can be done in excel or using
various CAD (computer aided design) programs, which is a critical tool for
successful preparation for a PI. You probably already have maps of your
store(s) that are used for planning layouts, displays etc. Be sure to
include all window displays, warehouses, storage closets, back office spaces, offsite storage and any place you can possible
have stored inventory. The idea of a having a map is to make sure you have gone
through all of these locations thoroughly and that everything is counted.
Check absolutely everywhere; in cabinets under cabinets on top of shelving
units. I have found merchandise in old display units in storage, on top of and
under all warehouse shelving (it’s good to check these odd locations where you
have found merchandise after the PI has been completed; hidden merchandise is a
Loss Prevention issue). Desk drawers, closets, the rest rooms, I used to
check drop ceilings as well. I found a stack of denim in the ceiling once (I’m
sure it was just misplaced!). Verify that each of these locations has been
checked before your inventory using your map for reference.
Fixtures:
Label
the map so each of your fixtures, every shelf, hang bar, t-stand and
merchandise peg have a number and letter. A corresponding spreadsheet should be
created listing each location and fixture; this spreadsheet and map will be
used the day of your physical inventory to verify a physical count has been
entered and verified by your team. I used to highlight the map to verify that an
area has been counted and then check it off on the spreadsheet. Starting with
Yellow for first count and then blue, green would mean that an area was
finished. Count your fixture in numerical order not randomly; this is a
time for order!
Tags:
Nothing
can hold up a physical inventory like merchandise without tags or incorrect
tags. It is important to have your staff verify that all merchandise has a bar code
label prior to your count. Set up an area in your stock room for your team to
place merchandise so it can be properly labeled before your PI and have it
retagged. Faded or torn tags should be reprinted so that everything is counted
properly.
Pre-counts:
Pre-counting
merchandise can save you a lot of time. Have a plan for difficult to count
items; counting bath beads by hand is not the most efficient way; use a
scale. Chocolates, coffee, soaps and those small items at the POS should
be pre-counted.
(Now
all of this is simply preparation for entering the counts into your software
system and that process will differ based upon the software you’re
running. I am not getting into that process in this post.)
Happy
Holidays!
Wednesday, July 16, 2014
Meet the Retail Expert
One Step Retail Solutions chatted with retail expert, Dan
Jablons of Retail Smart Guys, to learn about the best retail solutions for your
business! President of Retail Smart Guys, Dan comes with over 30 years of
retail experience and has worked with a leading POS provider, and top retailers
such as Diesel, Oakley, Tumi, Target and many others. Dan graduated with a
Bachelor of Science in Marketing and Production from Ohio State University and
has been making his mark in the retail industry ever since. We were very
fortunate to steal a moment from him, so we could pick his brain about what’s
in store for the future of retail.
What
makes you a retail expert?
I have over 30 years of retail experience, including
store management, buying, and operations management, as well as ample
experience in software and management tools used in retail stores, in over 14 different countries.
What
do you like best about the retail industry?
The excitement of working with people on the bleeding
edge of the market place. I love the creativity and excitement that independent
retailers bring to the marketplace!
How
can retailers increase sales?
There are two key components to help drive sales: email
marketing and a series of in store events. It is important to send at least two
emails a week to customers. It is also important to and have a series of
in store events that are fun and compelling and give customers a reason to go
shopping.
What
suggestions do you have for people looking into new Retail Technology?
Retail technology is vital because connecting a POS
system with strong planning systems allows inventory
forecasting, protects cash flow and maximizes investment. The biggest
investment is having the tools to manage what happened so you’re able to
prepare yourself for what is going to happen.
What
advice can you give a new retail business?
1. Make
sure you are buying for your customers and not buying for yourself.
2. Invest
in purchasing the best measurement tools so you can keep track of your sales
and inventory.
3. Recognize
that retail is a science and an art. Work with people that can assist you with
the science pieces as well as the art pieces.
What
are some new retail trends you’ve noticed in the industry?
There is tighter integration with customer demand to get
the right inventory, at the right place, at the right time.
What’s
the best piece of business advice you’ve ever received?
Retail is detail. The solution of problems means digging
into details, to manage the demands in any retail store.
Thanks very much for your time Dan! We appreciate the
retail expert advice and look forward to working with you again soon!
Tuesday, September 11, 2012
Vital Retailer Resources, A Breakdown
Do
you call ‘em the way you see ‘em?
By
Evan Wise, Management One 
There
are three umpires sitting in a bar discussing a game they just watched. The
first one says, “I call ‘em the way I see ‘em!” The second one disagrees and says, “They aren’t anything till I
call ‘em!” “Still wrong,” says the third one, “I
call ‘em the way they are!”
That illustrates three philosophies of calling balls and strikes and those
three philosophies characterize how small business owners I call ‘em the way I see ‘em
This
is the retailer who goes to market with a clean slate. They shop and buy what
they like. If they really like an item, they buy more. They make decisions on
the spot with little prior planning other than looking at what was sold last
year. This is a great way for an owner to stay in control of the situation
because no one else has an idea of how the owner “sees ‘em” so no one else can
replace the owner in buying picking merchandise. This is truly the way for a
small retailer to remain small.
They ain’t nothing until I call ‘em
This
is the owner who will not allow anything to happen without his approval.
Delegation is something he talks about but naturally his staff is not worth or
capable of delegated responsibility.
Every decision must be approved by the owner. It is not a decision until
the owner makes it. In the game, the players must adapt to the situation the
umpire creates, regardless of how good or bad the call may be or how
frustrating it is for players and fans. In a business, the employees are forced
to do the same thing regardless of how frustrating it is for employees or
customers. There is no instant replay in business nor can a customer throw a
flag on the field and have the decision reviewed by a higher authority!
I call ‘em the way they are
These are
the managers who are able to study the situation and draw conclusions from
accurate data. They look at history and use it to identify the trends and the
opportunities that exist for the customers. These owners understand the
customers, the vendors and the markets from both a quantitative and qualitative
viewpoint. These are retailers who invest in information to help everyone in
the organization to make the right decisions based on reality. These are the
owners who invest in training for their staff so that they can delegate and
have the right decisions made by others. These are the owners who define what
the goals are and then empower people to make them happen.
As a
retailer, you must manage two key assets and get the most return on your
investment in each:
·
INVENTORY
·
PEOPLE
ASSET ONE: INVENTORY
Too
often we find retailers who say, “They aren’t anything until I call ‘em.”
The way they judge success in the business is based on sales. If they reach
their sales targets, they declare that they are successful regardless of any
reality. Other retailers who “call ‘em the way they see ‘em” are
likely to focus on profits. Inventory is
an asset according to your accountant. This retailer may be profitable based on
the level of inventory in the store but he cannot pay his bills because his
cash is all tied up. The manager who “calls ‘em the way they are”
recognizes that inventory is only an asset if you sell it profitably. It is a
liability when it sits on the shelf. On the shelf, it ties up money that could
be invested in fresh goods. It takes up space that could be used to show the
items customers want. When you “call ‘em the way they are,” you
focus on cash and the key measurables, not just profits.
A retailer has two options to clear out goods that are a liability to his store:
· MARKDOWN STRATEGY
· MERCHANDISE PLANNING
Too
often retailers are forced to take heavy markdowns to reduce inventory levels,
raise cash to pay bills and generate traffic in the store. A markdown strategy
can include offering incentives to employees to show the merchandise, increased
marketing, re-merchandising to highlight the items and markdowns. All of these
are expensive and serve to drain cash and profits from the business but these
tactics are a fact of retail life. Many of the merchants who believe “they
ain’t nothing until I call ‘em,” make these offhanded and ad hoc
decisions about markdowns. They approve every markdown based on “gut feelings”.
The
owner who “calls ‘em the way they are” takes an approach of gathering
the data and uses MERCHANDISE PLANNING.
ASSET TWO: PEOPLE
People
are what make your store unique. Your people, your service, your policies and
procedures should be unique to your store. They are what should set you apart
from the competition and be the basis for your reputation and your brand image.
Your people are truly your most valuable asset. In which type of management approach
would you enjoy working? The most fair, predictable and reasonable approach is “I
call em they way they are.”
This is directed by the manager who gets the facts before jumping to
conclusions.
That being said, most retailers take a haphazard approach to managing their staff. If you want to put more cash in your pocket, you must do a better job from point of hire to point of sale... period! That is where we work with retailers on our solution called Winning@Business™. There are three components to the process of getting the most out of your investment in people:
- STRATEGY
- MANAGEMENT
- TRAINING
A
retailer who can get these right can truly dominate his marketplace, develop
loyal customers, keep the best employees and have more fun and profit from the
business. The reality is that most independent specialty retailers do not even
have a written strategy. The few I have met who do have a strategy, have rarely
shared that strategy with the rest of the organization.
The
second step in the process involves the management process. A business that has
a strategy must also have a process whereby the employees can be organized,
motivated and involved in the achievement of that strategy. A method to enhance
communication, collaboration and action that focuses on both the strategy and
the customer is essential to achieve results. The Winning@Business™ solution involves the
essentials of a management process including teamwork, problem solving,
capturing opportunities, meeting technology, measurement and accountability.
Moving the owner from “I call ‘em the way I see ‘em” or “they aren’t
anything until I call ‘em” to “I call ‘em the way they are” is a
critical part of success. A certified Management
One® affiliate
works hand in hand with the owner and the staff to not only set up the solution
and teach the principles, but also to implement and nurture the process to be
certain that the benefits are realized.
RESULTS
Inventory
planning, strategic planning, management and training are key elements to
success in any retail business. Management One® is focused and committed to
the results we achieve for each and every client. It is critical to measure the
return that a retailer receives on any investment and the investment in
business coaching services is no exception.
Our clients generally see a return of three to ten times the investment
in our solutions in the first year alone. We measure and report that
information too!
The results are staggering. They include:
OWNER
- Increase in profit and
cash
- Greater market share
and sales
- Greater peace of mind
that the store can run effectively in his/her absence
- Pride in a growing
business that is a market leader
- Freedom to grow the
business instead of work in the business
EMPLOYEE
- The right merchandise
is available to sell
- A feeling of belonging,
commitment, and involvement in the operation
- Understanding
expectations and empowerment lead to more significant action
- More input
- Often greater
remuneration
CUSTOMER
- A shopping experience
that is fun and productive
- A personal relationship
in addition to a business relationship
- A place where everybody
knows his/her name
- Convenience
- Service
- Loyalty
As a
specialty retailer, you cannot afford to operate in an ad hoc, haphazard,
shoot-from-the-hip or random manner any longer. When you do, you are providing
your competition too many opportunities to take customers, employees and market
share. You are robbing yourself of profits needed to grow the business. It is
time you put the latest techniques to work to boost your business, find reality
and start “calling ‘em the way they are!”
Thursday, May 10, 2012
The Future of Retailing with Retail Pro - Webinar
Join us for a Webinar on June 5th at 11:00am - 12:00am PDT
The Future of Retailing with Retail Pro
Space is limited.
Reserve your Webinar seat now at: https://www3.gotomeeting.com/register/541760974 | |||||||||||
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