6 Inventory Management Best Practices
In today's web world, there may be truly new and different fundamental processes at work, but successful retailers will continue to rely on tried-and-true inventory management fundamentals, including the following six best practices:
- Manage simple, consistent success metrics, such as fulfillment, turnover and gross margin return on investment.
- Dedicate your business to accurate data. Garbage in still results in garbage out.
- Maintain the quality of communications between marketing, merchandising and buyers.
- Apply top-down controls to align bottom-up item plans with budgets.
- Reduce time from processes wherever possible.
- Apply time against the 20 percent of your inventory problems that will deliver 80 percent of the benefit.
E Craig Harding Author's page Craig Harding is the president and founder of Direct Tech, Inc., provider of demand planning, inventory optimization, merchandise planning and analysis software. Direct Tech is the industry leader, helping catalog and e-commerce merchants drive profitability, increase demand and optimize inventory investment by providing best-in-class applications and services for more than 20 years. Prior to founding Direct Tech in 1989, Craig was a consultant in the direct marketing industry and performed strategic planning, system development and system implementation services for direct marketing companies. He previously held leadership positions in finance and information systems at ConAgra and QVC.