Choice doesn’t make us happier but instead accomplishes the contrary by making us uncertain. Yeah, I am talking about the plethora of choices that flashes in front of us as soon as we enter the aisle of any retail store. Aisle of any store is potentially a place where we can get a panic attack. Most of the times, culling our favourite products in the store puts us into a dilemma.
From a retailers’ perspective, inventory trimming is perfectly fine if it is done thinking as a customer rather than as a profit generator. What to keep and what not to keep should be directly calculated via daily records of sales. Delisting or enlisting any product should be done keeping customers in mind. It must satisfy the customers. First and foremost, cull down the products that are not big sellers and add products selling like hot cakes. Keep optimal SKUs for products in high demand and with higher profit margin.
Don’t rely on convoluted supply chain. So start thinking like a customer. How would you react and act, had you been in their shoes? Start monitoring inventory levels by the help of technology. Mitigate risk by taking decisions based on demand forecasting. Quantify the data available to optimize inventory level. Shelves are the place where products sell; warehouses just take care of buffer inventories. Perform daily check as ‘old pen and paper approach’ won’t work anymore. Let bygones be bygones, start afresh and take technological help to witness optimized inventory levels.
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