BACK OFFICE
lack of knowledge by the receiving staff thus
are abale to not only browse by stock code or
This system allows buyers to be proactive
incorrect identification of stock with the
barcode, but also see images of the products.
in their approach to retailing. With six months’
resultant incorrect information being captured.
Once an order has been placed on the
orders being kept in the archive, buyers can
If the information at the back end is incorrect,
Rapidtrade system, the user can view accurate
quickly and easily adjust orders. The system also
then no matter what, the results are incorrect.
order details and react if necessary. It is a
displays the number of in-stock products from
The importance of product knowledge at the
common frustration when a retailer orders a
the supplier as well as quantities. This allows
receiving end must not be underestimated.
product only to find out two weeks later that
buyers to have complete control of purchasing
The knowledge at the point of sale and cash
the supplier is in fact out of stock and now you
decisions and ensure that retailers always have
registers is equally important, the synergy
have angry customers at your door.
the right stock readily available. HA
between these points is extremely relevant
in producing accurate and valid information
to manage the most important investment
in your business. Many retailers do not set up
the software with the necessary defaults to
generate this information, whatever the reason,
if you buy a motorcar and never use it, does it
mean it’s a bad vehicle?
Stock management is a combination of art
and science. Many a time a product thought
to be a dog turns out to be a best seller. This
article is not intended to turn us into stock
management gurus, it is intended to highlight
the importance of this activity and provide
some key pointers when considering how to
invest wisely in stock. Money is cheap, at the
moment, when interest rates start to move
up, and they will, things will be different and
carrying excess stock when that happens, will
be the death knoll for many a business.
Each one of these subjects warrants careful
thought and management to ensure the
correct information is generated to optimise
the investment in stock, generate the required
profits and maintain and grow market share.
Stock management systems
The Rapidtrade system is designed for
storeowners to be able to place orders online
using a number of desktop or mobile devices
and then track the order online. This allows
retailers the freedom to know exactly what
stock will be arriving and when.
The system keeps track of previous orders
and retailers are able to see the number of
previously ordered products and calculate
how quickly the stock is being turned over in
their business. This is a great function to ensure
proper instock rates are achieved.
With the system’s unique database, users
Factors to take into consideration,
amongst others, when managing stock:
Floorspace: Is it generating the required yield per square meter?
Packaging: How does one merchandise it? Is it attractive? Does
it inform the consumer? Does it spell out the use and benefits? Is
the bulk pack design strong enough for the weight or shape of
the product? Does the packaging speak to your market?
Software set up: Is the software set up accurately? Can
the software expand when new ranges are added? Does
the software allow for setting up a dashboard with the key
results? How flexible is the reporting system and can the
defaults be manipulated to generate the required reports?
Rate of sale: Is the targeted rate of sale being achieved? What
Receiving procedures and standards: Is the receiving
should the stock cover be to achieve the required turnover rate?
process managed properly? Is there written procedures that
Marketing potential and supplier support: Does the
supplier support the retailer with co-operative advertising?
Does the demographics and potential in the market support the
sales of the product?
Market demand: Is the product supported by the market.
Changing market conditions will often result in dead stock if this
is not identified quickly.
are strictly enforced to ensure accuracy of information? Is
the correct receiving procedures documented? What do the
procedures detail with regards exceptions to the rule? Who
has authority to change codes or create new codes?
Merchandising potential and space: Do we have the
space to accommodate the new range or bulk stock? Where
will it be merchandised? How will it be merchandised?
Have we considered how the additional stock will affect the
Profit objectives: How must the mark up and rate of sale be
existing store lay out and category displays? Do we have the
structured to achieve the profit objectives? Is this viable? Is the
correct display fixtures?
retail price in line with the market? Too high or too low? Should
the stock be turned over faster at a lower margin or can the
Front end management: Who has permission to change
market sustain the higher margin?
stock codes at till point? Is the staff at the checkouts familiar
Staff knowledge and supplier training support: Has the
staff had training on the benefits and use of the product? A lack
with the stock? How accurate is the capturing of sales? Can they
identify if stock appears to have the incorrect informationie.
of confidence in one’s own knowledge of the product often
What is the managers’ personal soft spot? Many
results in a lost sale or grumpy customer, thus decreasing the
products end up on the shelf because the manager or buyer
turnover of the product.
has a personal interest in the hobby or activity, the purchase
Supplier service levels and reliability to honour these
is not supported by facts but rather personal bias.
standards: What is the delivery lead times? Shorter lead times
Price increases: Do you mark-up existing stock when notified
results in faster stock turns. What is the average order fill rate?
of a price increase? If not, do you have the additional working
Do they supply a comprehensive range or bits and pieces? How
capital to fund the replacement stock at the increased price?
reliable is their service to you?
Many a retailer wonders where the cash is going.
Cost of capital: What is the cost of the capital used to purchase
the stock?
Bar codes and on shelf pricing or product stickers? Bar
coding any day! There are some negatives but managing this
Cashflow requirements: Will there be cash to pay the account
asset is so important and requires accuracy, speed of results
when it becomes due? Does the store have the working capital
to desk, flexibility, and enhances productivity and is cost
to carry stock for longer than planned?
effective, it’s not even a debate.
HARDWARE AFRICA 2013
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