How do you optimize inventory to maximize merchandising space?

Retail merchandising is an Art to understand your customer’s preferences & Science to understand product lifecycle to have it an form of inventory which can be en-cash as an when there is a demand. This dream can only come true when Design, Buying, Product development, Product Sourcing, Warehousing & Retail Merchandising is aligned & this can only achieved by discussing/debating last season analysis, trend forecasting, customer behavioral & upcoming events in targeted markets

I think, Sometimes, collaboration and partnerships with other businesses that complement your offerings can also help cross-promote each other's products, boosting sales and cash flow for both parties.

You have to design your modular or plan-o-gram space to maximize the holding power of key items. All items should be able to maintain at least a day of supply. Position key customer items, within the category, at eye level. This would also be a good place to display your new items. Display complimentary items in close proximity to maximize multiple item transaction. Smaller items should be higher to avoid being lost visually. Larger items should be closer to the bottom. Most customers have been trained to look for bulky items below.

Managing inventory and stock levels is often more art than science, given the difficulty of forecasting months into the future. However, by shortening your supply chain so that it is only days long, the entire forecasting and inventory management problem evaporates. This is how Shein and Temu have managed to scale so rapidly. They use a "direct fulfillment" model, which allows them to fulfill direct to consumer - straight from China. By doing so, they can order minimal inventory and yet always stay perfectly in stock. Direct fulfillment won't work for everyone, but for ecommerce-focused brands, it can be a game-changer.

Using the right technology and tools enable a easy and hassle free inventory management. RFID will enable retailers to track and manage inventory in real time. This reduces errors, minimizes stockouts & improves overall inventory accuracy. It enables the retailers to track products from manufacturing to point of sale. It can enable interactive displays, Smart mirrors, automated check out and there by enhancing overall customer experience. It can improve the stock replenishments, Backstore management, Stock consolidations, Stock count process, Stock receiving and dispatching in real time and reduces lot of human efforts. Helps to prevent the staging of products.RFID plays a crucial role in optimizing various aspects of retail operations.

In addition to this AI Contribution, Turning over inventory quickly for cash can be a challenge, but here are some strategies that may help: 1. Consider consignment or resale options: If appropriate for your business, explore consignment or resale arrangements where you can sell your inventory through third-party stores or platforms. This can help turn over inventory and generate cash. 2. Review and adjust purchasing strategies: Assess your inventory management practices to minimize overstocking and optimize your purchasing strategy. By avoiding excessive inventory, you can free up cash more easily. Remember, always assess the feasibility and impact of these strategies on your overall business goals and financial health.