You're dealing with shortages and overstock. How do you decide which products to restock first?

To decide which products to restock first, start by analyzing sales data to identify high-demand items. Focus on products that consistently sell out, indicating strong customer need. Differentiate between seasonal trends and evergreen items to guide your restocking strategy. Prioritize high-demand products that drive sales and enhance customer satisfaction. These items not only boost revenue but also improve customer retention, as shoppers are more likely to return to a store that reliably stocks their preferred products.

Come?aria analisando os dados, olhando para o histórico de vendas, criar indicadores como taxa de rotatividade e cobertura do estoque, segmenta??o dos produtos, como por exemplo curva ABC, previs?o de demandas, margem de lucro, impactos para os clientes e custo de armazenamento. Acredito que através dessas análises é possível entender de forma profunda as necessidades, permitindo assim a tomada de decis?o com base nos dados.

Check inventory velocity by assessing turnover rates to determine which products to restock first. Focus on items with high turnover rates, as they sell quickly and provide a fast return on investment. Prioritizing these products helps minimize holding costs and prevents capital from being tied up in slow-moving inventory. By restocking high-velocity items, you optimize your inventory management and maintain financial health, ensuring that your resources are invested in products that contribute positively to your business’s profitability.

Evaluate profit margins to determine which products to restock. Focus on items with higher profit margins, as they contribute more to your bottom line and can absorb inventory management costs. When making restocking decisions, balance demand with profitability. Prioritize high-margin products even if they don’t sell as quickly, as they can significantly boost overall profitability. This approach ensures that your inventory investments enhance both sales and profit margins, leading to a more financially sustainable business model.

Consider supplier reliability when deciding which products to restock. Prioritize items from suppliers with a proven track record of timely and consistent delivery to minimize stockouts and ensure a steady product flow. Reliable suppliers reduce the risk of disruptions and can offer better terms, such as bulk discounts or flexible payment options. Building strong relationships with dependable suppliers enhances your inventory management and contributes to smoother operations and cost savings over time.

Pay attention to customer feedback to guide your restocking decisions. Products frequently requested or with positive reviews are strong candidates for replenishment. Conversely, items with negative feedback or low demand may not warrant immediate restocking. Customer insights can also reveal issues with your current inventory, allowing you to address problems before they escalate. By aligning restocking decisions with customer preferences, you ensure that your inventory meets market demand and enhances overall customer satisfaction.

From a Fashion Retail POV Start with analysing stock shortage & overstock scenario with sales to assess if sellthru/stock-cover are in check, & take corrective action as reqd basis rate of sale & stock level, from macro to micro level as relevant at both ends Brand: Gender> Category> Style/Colorway (core & fashion)> SKU/Size ?Replenish core style to avoid any potential missed sales opportunity. Refresh soldout fashion style with new ones from planned upcoming deliveries to maintain newness Market: Region> State> City> Store>> SKU ?Rationalize stock transferring slowmover style interstore where it might be a fastmover to maximize sales, or return to warehouse to reallocate ??Overall keeping customer service & fullprice sellthru objective

As per my overall experience, When you are dealing with both shortages and over-stock, I will start by analyzing the current stock levels vs sales performance.I will check sell-through rate and stock level at both macro and micro levels. 1. Core/Hero styles:- Prioritize replenishment in core styles to ensure no LOS as these are consistently in high demand. Or you can increase the depth in core products. Additionally, refresh sold-out fashion styles with upcoming deliveries to maintain product freshness. 2. Slow-Moving Stock:- For slow-moving items, I consider IST where they might perform better or RTV for reallocation. Overall, the objective is to balance Net inventory, maximize sales and maintain high customer service standards.

Aim for a balanced inventory by prioritizing high-demand items while managing the rest of your stock. Avoid overstocking, which can lead to markdowns and reduced profits. Use clearance sales or promotions to move excess inventory, freeing up space and capital for new or essential restocks. Maintaining balance ensures that every part of your inventory contributes positively to your business. This approach optimizes your stock levels, minimizes financial risk, and supports steady, profitable operations.