Implimenting merchandise planning in retail marketing
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To describe the steps in the implementation of merchandise plans (a) Information is gathered about target market needs and prospective suppliers. Data about shopper needs can come from customers, suppliers, personnel, competitors, and others. A want book (want slip) is helpful. To acquire information about suppliers, the retailer can talk to prospects, attend trade shows, visit merchandise marts, and search the Web.
(b) The retailer chooses firm-owned; outside, regularly used; and/or outside, new supply sources. Relationships may become strained with suppliers because their goals differ from those of retailers.
(c) The merchandise under consideration is evaluated through inspection, sampling, and/or description. The method depends on the product and situation.
(d) Purchase terms may be negotiated (as with opportunistic buying) or uniform contracts may be used. Terms must be clear, including the delivery date, quantity purchased, price and payment arrangements, discounts, form of delivery, and point of transfer. There may also be special provisions.
(e) The purchase is concluded automatically or manually. Sometimes, management approval is needed. The transfer of title may take place as soon as the order is shipped or not until after merchandise is sold by the retailer.
(f) Handling involves receiving and storing, price and inventory marking, displays, floor stocking, customer transactions, delivery or pickup, returns and damaged goods, monitoring pilferage, and control. RFID (radio frequency identification) is an emerging technology in this area.
(g) Reorder procedures depend on order and delivery time, inventory turnover, financial outlays, and inventory versus ordering costs.
(h) Both the overall merchandising procedure and specific goods and services must be reviewed.
To examine the prominent roles of logistics and inventory management in the implementation of merchandise plans Logistics includes planning, implementing, and coordinating the movement of merchandise from supplier to retailer to customer. Logistics goals are to relate costs to activities, accurately place and receive orders, minimize ordering/receiving time, coordinate shipments, have proper merchandise levels, place merchandise on the sales floor, process customer orders, work well in the supply chain, handle returns effectively and minimize damaged products, monitor accomplishments, and have backup plans.
A supply chain covers all the parties in the logistics process. Collaborative planning, forecasting, and replenishment (CPFR) uses a holistic approach. Third-party logistics is more popular than before. Many manufacturers and retailers have Web sites to interact with channel partners.
Some retailers engage in QR inventory planning. Floor-ready merchandise is received at the store ready to be displayed. EDI lets retailers use QR planning through computerized supply chain relationships. Numerous supermarkets use efficient consumer response. Several transportation decisions are needed, as are warehousing choices. Certain retailers have goods shipped by direct store delivery. Retailers must also plan for outbound logistics: completing transactions by turning over merchandise to the customer.
As part of logistics, a retailer uses inventory management. Due to its complexity, and to reduce costs, retailers may expect suppliers to perform more tasks or they may outsource at least some inventory activities. Vendor-managed inventory (VMI) is growing in popularity.
Having the proper inventory is a hard balancing act: The retailer does not want to not lose sales due to being out of stock. Yet, it does not want to be stuck with excess merchandise. Each year, $40 billion in U.S. retail sales are lost due to employee theft, customer shoplifting, vendor fraud, and administrative errors. Many retailers use electronic article surveillance, with special tags attached to products.
Reverse logistics involves all merchandise flows from the retailer back through a supply channel. It includes returns due to damages, defects, or poor retail sales.
Inventory performance must be analyzed regularly.
(b) The retailer chooses firm-owned; outside, regularly used; and/or outside, new supply sources. Relationships may become strained with suppliers because their goals differ from those of retailers.
(c) The merchandise under consideration is evaluated through inspection, sampling, and/or description. The method depends on the product and situation.
(d) Purchase terms may be negotiated (as with opportunistic buying) or uniform contracts may be used. Terms must be clear, including the delivery date, quantity purchased, price and payment arrangements, discounts, form of delivery, and point of transfer. There may also be special provisions.
(e) The purchase is concluded automatically or manually. Sometimes, management approval is needed. The transfer of title may take place as soon as the order is shipped or not until after merchandise is sold by the retailer.
(f) Handling involves receiving and storing, price and inventory marking, displays, floor stocking, customer transactions, delivery or pickup, returns and damaged goods, monitoring pilferage, and control. RFID (radio frequency identification) is an emerging technology in this area.
(g) Reorder procedures depend on order and delivery time, inventory turnover, financial outlays, and inventory versus ordering costs.
(h) Both the overall merchandising procedure and specific goods and services must be reviewed.
To examine the prominent roles of logistics and inventory management in the implementation of merchandise plans Logistics includes planning, implementing, and coordinating the movement of merchandise from supplier to retailer to customer. Logistics goals are to relate costs to activities, accurately place and receive orders, minimize ordering/receiving time, coordinate shipments, have proper merchandise levels, place merchandise on the sales floor, process customer orders, work well in the supply chain, handle returns effectively and minimize damaged products, monitor accomplishments, and have backup plans.
A supply chain covers all the parties in the logistics process. Collaborative planning, forecasting, and replenishment (CPFR) uses a holistic approach. Third-party logistics is more popular than before. Many manufacturers and retailers have Web sites to interact with channel partners.
Some retailers engage in QR inventory planning. Floor-ready merchandise is received at the store ready to be displayed. EDI lets retailers use QR planning through computerized supply chain relationships. Numerous supermarkets use efficient consumer response. Several transportation decisions are needed, as are warehousing choices. Certain retailers have goods shipped by direct store delivery. Retailers must also plan for outbound logistics: completing transactions by turning over merchandise to the customer.
As part of logistics, a retailer uses inventory management. Due to its complexity, and to reduce costs, retailers may expect suppliers to perform more tasks or they may outsource at least some inventory activities. Vendor-managed inventory (VMI) is growing in popularity.
Having the proper inventory is a hard balancing act: The retailer does not want to not lose sales due to being out of stock. Yet, it does not want to be stuck with excess merchandise. Each year, $40 billion in U.S. retail sales are lost due to employee theft, customer shoplifting, vendor fraud, and administrative errors. Many retailers use electronic article surveillance, with special tags attached to products.
Reverse logistics involves all merchandise flows from the retailer back through a supply channel. It includes returns due to damages, defects, or poor retail sales.
Inventory performance must be analyzed regularly.
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