A restocking plan is a strategy to replenish your store inventory based on your sales performance, customer demand, and supplier availability. It helps you avoid running out of stock, overstocking, and wasting money on inventory that doesn't sell. In this article, you will learn how to create a restocking plan for your new store inventory in four steps.
The first step to create a restocking plan is to analyze your sales data from your point of sale (POS) system, inventory management software, or other tools. You want to identify your best-selling products, your slow-moving products, and your seasonal products. You also want to calculate your inventory turnover ratio, which is the number of times you sold and replaced your inventory in a given period. This will help you determine how often you need to restock and how much inventory you need to keep on hand.
To restock your new store inventory, follow these steps: 1. Monitor current inventory levels to identify low-stock items. 2. Create a list of items to restock based on demand and popularity. 3. Contact suppliers or distributors to place orders for the needed products. 4. Set up a systematic process for receiving and updating inventory. 5. Update your store's database or management system with the new stock information. 6. Display restocked items prominently in your store to attract customer attention. 7. Consider analyzing sales data to optimize future inventory management. 8. Regularly review and adjust restocking strategies to meet changing demands.
When analyzing your sales data to create a restocking plan, it's important to start by creating a general restocking timeline. Here's how you can do it: 1. Determine how long it takes for each product to arrive at your store, taking into account both production and shipping time. 2. Create a buffer for your bestsellers to ensure you don't run out of stock in case of shipping delays. 3. Compare your item sell-through to previous years, making sure to compare the same months for an accurate comparison.
Create a restocking plan for your new store inventory by regularly monitoring sales data, setting reorder triggers based on product popularity and sales velocity, maintaining a safety stock level, and establishing relationships with reliable suppliers. Adjust the plan based on seasonality and market trends to ensure timely replenishment and avoid stockouts.
The second step to create a restocking plan is to forecast your demand for the next period, whether it's a week, a month, or a quarter. You can use historical sales data, market trends, customer feedback, and promotional plans to estimate how much inventory you will need to meet your sales goals. You should also factor in external factors, such as holidays, weather, competitors, and economic conditions, that may affect your demand. You can use different methods, such as trend analysis, moving average, or exponential smoothing, to forecast your demand.
The restocking plan should be dynamic which considers the offtake for 6-8 weeks period .The Minimum Base Quantity on the shelf should be decided basis the offtake and it should be set on Auto replenishment mode . In my experience the challenges arise in the fastest and the slowest moving articles where improper restocking plan leads to Out of stocks on the shelf or ageing of the products .
The third step to create a restocking plan is to negotiate with your suppliers to ensure that you get the best prices, terms, and delivery times for your inventory. You should compare different suppliers and choose the ones that offer the best quality, reliability, and service. You should also establish a good relationship with your suppliers and communicate your needs and expectations clearly. You should negotiate for discounts, bulk orders, free shipping, or flexible payment options to reduce your costs and increase your cash flow.
The fourth step to create a restocking plan is to monitor and adjust your plan as needed. You should track your inventory levels, sales performance, and customer feedback regularly and compare them with your forecasts and goals. You should also review your supplier performance and satisfaction. You should make adjustments to your plan if you notice any discrepancies, changes, or opportunities. You should also update your plan periodically to reflect the latest data, trends, and feedback.