2009 ORWM Outdoor Specialty Retailer Seminars
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Transcript of 2009 ORWM Outdoor Specialty Retailer Seminars
2009 ORWMOutdoor Specialty Retailer
SeminarsInventory Management:
The process Is More Important ThenThe TechnologyJanuary 23, 2009
Jay TownleyThe Gluskin Townley Group, LLC
The Gluskin Townley Group, LLC
Inventory Management: The process Is More Important Then The Technology
• Inventory Management is a collective term for eleven store operating functions
• Summary
• What I Want You To Do Today & Tomorrow
• Q&A
The Gluskin Townley Group, LLC
Inventory Management: The process Is More Important Then The Technology
Inventory Management = eleven storeoperating functions that are a part of theComplete Retail Process, #4 on the list of
fiveways to grow your business.• …the consistent steps your store follows
in providing an exceptional retail shopping experience, every time!
• Part of the Process…is having what your customers want, when they want it.
The Gluskin Townley Group, LLC
Eleven Store Operating Functions
1. Merchandise Assortment Planning
• Establish a planning process for selecting,stocking, displaying and marketing all of the Stock Keeping Units you sell…by season.
– Pricing policy– Inventory turn goals– Gross Margin Return On Inventory
GMROI
The Gluskin Townley Group, LLC
Eleven Store Operating Functions
2. Sales forecasting at the category and SKU levels• Your merchandise assortment plan will
requiresales forecasts, as does your annual business-financial plan.
– Units and Dollars• Get your suppliers, managers and staff and
past sales history involved in the forecasting process
The Gluskin Townley Group, LLC
Eleven Store Operating Functions
3. Open to buy, or OTB Analysis and Management • Available with some POS systems• Consulting services available…
category management• Never re-order a SKU that isn’t selling
at retail!• SROR = 29% of Retailers have OTB
The Gluskin Townley Group, LLC
Eleven Store Operating Functions
4. Purchasing and generating and issuing purchase orders• Documents the terms and conditions• Available with some POS Systems
– SROR = 82% of stores have POS Systemsand 24% are booking orders electronically
• Integral part of OTB, cash-flow & AP• Go to a stationery store and purchase
manual forms!
The Gluskin Townley Group, LLC
Eleven Store Operating Functions
5. Use of scanning technology from door to
door• SROR = 82% of stores have POS
systems and 24% are booking orders electronically
• Scan in at receiving, and Scan out at point-of-sale.
• RF technology
The Gluskin Townley Group, LLC
Eleven Store Operating Functions
6. Regular and consistent education of staff to
ensure complete working knowledge of the
store POS system• Teach your staff how it works• Educate your staff about what your POS
system is capable of doing and what information and metrics it can generate
• POS vendor support
The Gluskin Townley Group, LLC
Eleven Store Operating Functions
7. Retail process that assures consistent staff use of every aspect of the store POS system
• Teach you staff how you want them to use the system = Customer information
• Your POS system becomes a very powerful part of your stores complete operating process…when staff is educated and trained in all the modules and the system is fully utilized
The Gluskin Townley Group, LLC
Eleven Store Operating Functions
8. Retail process that specifies what metrics will
be tracked and regularly generated by the
store systems…weekly!• What are the Critical Numbers to your
business– Sales, Operating Margin, Total Expenses,
Realized GM by categories and Inventory, Inventory turns & GMROI…Net Operating Profit
The Gluskin Townley Group, LLC
Eleven Store Operating Functions
9. Store operating policies and procedures that
document and fully support the inventory management process• Store Operations Manual…your road map
to growth!• Don’t keep this stuff in your head…• The difference between not growing and
growing…could be simply writing it down!
The Gluskin Townley Group, LLC
Eleven Store Operating Functions
10. Store management that consistently and
uniformly supervises, guides and helps staff
adhere to store operating policies and procedures• In other-words, lead by example…by
adhering to your own operating policies and procedures
• What, Why and How
The Gluskin Townley Group, LLC
Eleven Store Operating Functions
11. Store management that consistently educates the staff in the store retail process, including inventory management
• Develop an annual staff training and education plan that goes beyond rep clinics on how to sell stuff
• Staff buy-in and support for your store retail process is critical to success and growth
The Gluskin Townley Group, LLC
SUMMARY
At the end of the day…it’s not the computers orsoftware, or technology, it is your documentedstore operating process, consistentmanagement leadership and ongoing staffeducation that makes possible more profitableInventory Management that will help yourbusiness grow!
The Gluskin Townley Group, LLC
Inventory Management: The Process Is More Important Then The Technology!
What I Want You To Do Today & Tomorrow• Write down your thoughts and ideas for
developing or improving your merchandise assortment planning.
• Include what you are going to do to develop and improve your sales forecasting.
• If you don’t already use OTB, write down what you plan to do to implement OTB this quarter.
The Gluskin Townley Group, LLC
Inventory Management: The Process Is More Important Then The Technology!
What I Want You To Do Today & Tomorrow
• If you are not using a formal purchasing system – write down your thoughts on establishing one.
• If you are using door-to-door scanning, write down your ideas for improvements…and if your not, your thoughts on implementation.
The Gluskin Townley Group, LLC
Inventory Management: The Process Is More Important Then The Technology!
What I Want You To Do Today & Tomorrow• If you don’t have a Store Operating
Manual, write down your thoughts and ideas for developing one this quarter.
• Write down your thoughts and ideas for improving your staff education plan and program…and if you don’t have one, what your thoughts are about establishing one.
The Gluskin Townley Group, LLC
Inventory Management: The Process Is More Important Then The Technology!
What I Want You To Do Today & Tomorrow
• Write down your ideas for leading your store inventory management process, and making your leadership and that of your managers consistent throughout the year!
– Store Operating Manual– Staff education plan and program
The Gluskin Townley Group, LLC
• When you have 15-20 minutes at your computer, take the OIA Outdoor Specialty Retail Survive Or Thrive Assessment Survey by visiting www.outdoorindustry.org
What I Want You To Do Today & Tomorrow
The Gluskin Townley Group, LLC
Q & A
Thank You!
Jay TownleyPartner
The Gluskin Townley Group, [email protected]