When doing this, you can open new stores horizontally or open up new departments and grow vertically. You can run 5 stores at the cost of 4 when you know, clear out the cash invested in dead stocks, and start maintaining an optimized inventory! But, with solutions like ‘ The EYE,’ it’s as easy as ABC to have control over all these and thrive expanding vertically or horizontally. It is humanly impossible to have control over all these factors. However, not to worry, you can maximize sales with the minimum inventory available by knowing the exact reorder points, procuring the right quantity, and at the right time with automation!Īpparently, when your cash flow, inventory management, consumer behavior, and supplier-employee excellence is out of your hand, you feel tough to survive. You must have invested suddenly by procuring items from suppliers who sell at a higher margin due to an unprecedented stockout.You must have invested in products with less demand that stays stagnant as dead-stocks.When your cash becomes invisible, it usually ends up in two places, Both categories clearly show that you do not handle your inventory effectively and efficiently. Or you spend very less cash on procuring products when there is a need, and you’re about to face a serious risk of running out of stock, which leads to a lower IDOH. If you are not confidently saying YES, then you fall under one of these 2 categories.Įither you spend more cash on procuring products with less demand, which leads to a higher IDOH. How much aware am I in terms of the Cash available? Am I investing the right amount for the right quantity of stocks to be purchased at the right time? Here it is time to pause and ask some quick questions! The most common problem that Indian retailers overlook is ‘Cash.’ Inventory days on hand are directly associated with Cash, as IDOH is nothing but the time during which cash remains tied up in your stock.
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