Description
Understand the pros and cons of Vendor Managed Inventory programs and how to make them successful.Many vendors that provide basics to your business will want to put your store(s) on a Vendor Managed Inventory program. This program allows the vendor to stock your stores with inventory levels that they believe would be appropriate. This can be a great opportunity for you and your stores, but you have to know the good and bad elements of doing business this way. Dan Jablons of Retail Smart Guys walks you through the entire process in this topic, making sure that you have the greatest level of success
Date: 2021-07-20 Start Time: End Time:
Learning Objectives
What Is Vendor Managed Inventory?
• Definition
• Isn’t This Allowing the Vendor to Write Their Own Checks From My Checkbook?
Typical Negotiated Terms
• Inventory Levels/Square Footage of Floor Space
• Turn Rate
• Maintained Markup
• End of Season Inventory
• Frequency of Orders
• Frequency of Store Visits
Benefits for the Retailer
• One Less Vendor/Product Category to Maintain
• Should Provide Better Sell Thru, Better Margins
• Should Provide Lower Carrying Costs
• Frees up Time to Work on Other More Difficult Categories
Benefits for the Vendor
• Better Insights Into the Retail Business
• Better Ability to Predict and Control Their Own Production
• Less Chance of Abandonment by the Retailer
How Does It Start?
• Current Physical Inventory
• Review of the Status/Freshness of the Goods
• Trade Outs of Older Merchandise in Favor or New Goods
• Review of Size/Color/Dimension Optimum Inventory
Review Items as the Program Progresses
• Am I Selling More or Less Than When We Started?
• Am I Buying More or Less Than When We Started?
• Did This Improve My Cash Margin?
• Has This Disrupted My Selling Floor?
Negotiating Tips
• Terms on Purchases
• Timing of RTVs
• Marketing Support
• Length of Agreement/Termination
ISM ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
Dan Jablons-Retail Smart Guys
