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It is beneficial to exhaust your resources first, so you don’t end up with the excess products in one store that you eventually have to markdown. Monitor important metrics : Keep track of inventory costs, turn rate, and sell-through rates to know how your inventory performs and make appropriate changes.
Indicators you’re managing bad inventory. You may be dealing with a bad inventory if you are continuously having one or more of the following issues: 1. Drastic Markdowns. Last minute markdowns that offload stock at a loss. A low rate of inventoryturnover. No room for in-demand inventory .
Streamlining Order Fulfillment and Delivery For many shoppers, fast and affordable delivery is non-negotiable. Some retailers have even implemented innovative pick-to-light and voice-directed systems to make order fulfilment faster and error-free. Retailers can tap into smart routing software to optimize delivery logistics.
Price elasticity of demand, meaning the effect that a set price will have on demand, is an important consideration when setting prices, running promotions, or markdowns. When Inventory is proactively allocated among locations to meet demand, customers are not repeatedly met with empty shelves pushing them to other retailers.
Jump Ahead Most Important KPIs for the Retail Industry in 2020 Examples of Retail KPIs that Maximize Inventory ROI 1. InventoryTurnover Ratio 3. Retailers must maintain a healthy In-Stock Percentage for every product at every store, in order to avoid out-of-stocks, lost sales, failed promotions, and costly markdowns.
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