Tweet

Does your system tells how much you should buy?

Written by: Nilesh Shah

Article Overview: Retailing is a delicate balance between merchandise and cash. It’s a high stakes balancing act: commit money early to large quantities of merchandise, and possibly end up with too much; or, commit less up front, saving cash for later, and take the risk of not being able to get the goods when you need them.

Does your system tells how much you should buy?

Retailing is a delicate balance between merchandise and cash.

It’s a high stakes balancing act: commit money early to large quantities of merchandise, and possibly end up with too much; or, commit less up front, saving cash for later, and take the risk of not being able to get the goods when you need them.

How to achieve the right balance between merchandise and cash?
Projections and planning are essential, enabling you to meet inventory needs on a regular basis and avoid too much inventory when you don’t want it.

For this traditional system ask for

* Reorder Level
* Safety Level
* Re-order Quantity
* Minimum Order Qty

Isn’t this is a tedious job to input these data for 1000s of SKUs.

For the Retail Method of Inventory Accounting, Pre-Purchase Order (PPO) or Automatic Purchase Order (APO) is an instrument through which the tentative plan of order placement to the vendor is done for the whole season as soon as the inventory planning is completed.

A Retail Management software must have a powerful Auto Purchase Order system which asks you few questions to generate a purchase order based on your last transactions.

Related Articles
  Systems for Extraordinary Success
  Organizing CDs, DVDs, Software and other Discs
  How’s Your GPS Working?
  M is for Marketing Strategy
  Relationships: Attract at Your Common Level of Self-Love

Article Tags: 1000s, accounting, apo, auto purchase, balancing act, delicate balance, high stakes, inventory planning, method of inventory, money, ppo, purchase order system, quantities, retail management software, retail method, risk, safety level, skus, tedious job, tentative plan



Related Forum Posts
Re: Franchising? Why pay franchise fees? - I have found that most true entrepreneurs will never buy a franchise because they don't see the value of the franchise system. Bill Gates would probably never buy a franchise right? He created the system, he doesn't want to follow a system. A Franchise is a system. Bottom line is the bottom line. If you can't see where the name, system, training, support, products, & services will make you more money than opening your own business then open your own. It is a known fact that 90% of all small businesses close within 2 years. It is also a known fact that over 90% of all franchises are still open after 2 years. So franchising may not be right for everyone, but someone must be doing something right to have one open every 8 minutes in the US.
Re: 4 Ideas for Viral Marketing - Hey, Ideas University what do you think about the spiderweb marketing system? Have you heard of it? I used it once but stopped, when I first got started in IM (I'd try almost anything). But I was wondering what your thoughts were about that system and how it's been so successful?
Re: What I enjoyed reading this week - Jan 13, 2012 - Ok Evan's you have developed a system for doing these. I hope you can share the system with us
Autoresponders! - Great suggestion Stephen! I use Awebber for my newsletter system and find that it's a pretty good system and very price effective. You get unlimited use for a really low monthly fee. I haven't used Autoresponders to date but might consider it after your post! Thanks!
Re: Social Networking and You - Thank you Mal The Fact is that these predictions are already being proven true so much so that my partners and i have developed a new system we call Social Impact Marketing , and using this system we have been able to get some amazing results dropping a sites Alexa from 3.8 million right down to 153,752 in just over 7 weeks and increasing it's page views from 52 per week to between 60,000 and 112,000+ per day and unique visitors up from 12 (mostly ourselves) per week to around 600 to 1000 unique visits per day, to prove it's not a fluke we then went on to do the same for 2 other sites. of course basic SEO was still used but the main effect could be traced to SIM, which is a simple system to implement but requires the use of a team comprising of at least 3 - 4 people working in unison. Just how far we are able to push a site using SIM is yet to be established as the sites used in our testing of the system continue to improve daily and until they peak we cannot establish a benchmark however they have already passed the achievable levels using the basic SEO applied to them..


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Winning Market Share in a Tough Economy

Top Ten Home-Based Businesses

Smart & Simple Internet Techniques

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.