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How to improve inventory turnover

Mar 17, 2021

一、The principle of survival of the fittest for unsalable commodities

According to the monthly sales report, the buyer will eliminate the last 10 or 20 in the sales ranking (each category) for the category of goods that he is responsible for, or require the supplier to cooperate with the solution proposed by our company for poorly sold products.

For example, requiring suppliers to reduce prices, engage in colorful promotional activities, support costs for new display adjustments (dumping or N racks) or direct clearance sales (the products that can be sold are sold as far as possible without clearance and return processing, because The loss in sales is only the supplier, we also have a profit, such as returning the goods, there is nothing).


二、Strategies to increase the sales of goods

(1) Actively guide the surrounding market to conduct price competition

(2) The gross profit margin of the price increase is controlled within a reasonable range (in strict accordance with the discount rate promised by the membership-based shopping mall)

(3) Establish an independent, professional, and efficient sales team for group purchases or government procurement projects of enterprises and institutions (take out half of the profit or even more of the sales incentive plan to front-line employees)

(4) Formulate member points rebate plan and implement it in practice

(5) A variety of preferential and promotional activities

(6) The display period of the goods in the aisle (N shelves in the stack) shall not exceed 15 days.

(7) "Golden Ideas" plan, with all people participating. The company fully supports the sales of favorable "ideas", and rewards for good results.

(8) Other plans that are conducive to sales.


三、Principles and methods to strictly control the total number of product SKUs

(1) The number of SKUs of the product must be strictly controlled within the specified range during the general sales period or season

(2) For products sold during holidays or special periods, the increase in the number of product SKUs and the purchase plan must be made in advance

(3) Commodities that are coming or out of season or commodities whose validity period is about to expire and cannot be returned should be cleared or reduced in price in advance

(4) If the number of product SKUs really needs to be increased or decreased, it can only be adjusted within 10%

(5) Develop a detailed and thoughtful price reduction principle and procedure for dealing with commodities

(6) The introduction of new products or the development of products with sales potential, the premise is that the products in this category should be cleared accordingly


四、Increase the frequency of ordering and implement a small number of multiple operations strategy

(1) Reaching the supplier’s minimum delivery standard is a prerequisite for a small order

(2) For some order discounts that can only be enjoyed after reaching a certain amount, the principle of the total order amount unchanged and the delivery of orders can be implemented.

(3) For products that sell quickly, the principle of insufficient inventory at any time, ordering at any time, and delivery at any time can be implemented (the purchaser and the supplier need to fully negotiate to reach the above delivery consensus)

(4) Fully consider the relationship between the number of SKUs of the supplied goods and the delivery cost reached by the supplier and the company (the number of SKUs of the supplied goods is too small, and the number of best-selling goods replenishment is small, and the number of supplier deliveries is reduced accordingly; And remember that if the quantity of goods supplied by the supplier is too large, it will cause the supplier to control the price of the company's goods or support the promotion and expenses.)


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