Tactics to take back control of Inventory
A retail expert discusses tactical approaches retailers use to regain inventory control, emphasizing frequent replanning, delayed decision-making, and focusing on core product offerings. The discussion covers both granular SKU-level and macro business-level forecasting strategies.
Summary
The speaker outlines several key tactics retailers are employing to regain control over their inventory management challenges. The primary approach involves implementing more frequent replanning and reforecasting activities in merchandise planning, which has shifted from being a safety net to becoming the main operational activity. This replanning occurs not just at the granular SKU level but also at macro levels across categories and entire businesses. Retailers are naturally adopting more agile approaches even without formal reforecasting processes, including refreshing plans more quickly, developing contingency plans, and working with multiple scenarios to stay responsive. A critical strategy highlighted is delaying go-to-market decisions as late as possible to gather maximum information before committing to inventory decisions - a practice exemplified by Cotton On's approach of postponing decisions until the last possible moment. Additionally, retailers are strategically focusing more on their core offerings while trimming peripheral products, essentially doubling down on what they're known for and reducing risk exposure while maintaining brand consistency and having reliable products available even when market conditions become challenging.
About this episode
Here are some tactics to help you take back control of the inventory in your business… The Replan activity is fundamental - Whether as a structured process, or less formal, this ongoing cycle of reviewing and replanning based on new information will help you stay on top of things, so you can adjust your stock requirements appropriately and quickly. Plan, replan, replan some more. Create contingencies and scenarios. Try to leave decisions as late as possible, so you can act on the most current and most relevant information. Don’t get trapped in a cycle that’s “the way we’ve always done it”, and miss out on the agile edge this approach can give you. Put more emphasis, where feasible, into your core offering, and rethink investment in higher risk, peripheral range offerings. That doesn’t mean no newness, no trialling and no excitement. Just a bit of discipline to keep the main thing the main thing, while staying true to the brand / customer expectation, and allowing yourself a little buffer if things go sideways. These Merchandise Planning “basics” are even more critical in this very dynamic environment. #Retail #MerchandisePlanning #InventoryManagement _____ ✅ Subscribe to our YouTube channel ✅ Join our Merchandise Planning community at https://smartinplanning.ac-page.com/stay-connected-planning-matters?test=true ✅ Visit our website to receive our blog and updates to your inbox https://www.smartinplanning.com/blog ✅ Share, like and follow us on social for more "Planning as it should be" ✅ Check out our ONLINE TRAINING in Merchandise Planning at SMART SCHOOL: https://smartschool.smartinplanning.com _____ SMART IN PLANNING - Merchandise Planning Solutions - Multi-award winning solution provider as voted by Retailers Founded by Susan Martin _____ #planningasitshouldbe #merchandiseplanning #everythingmerchandiseplanning #retail #training #learning #education #bigbox #fashion #smartinplanning #merchandiseplanningsolutions #theartandthescienceofplanning #changingthefaceofplanning #planning #merchandise #apparel #merchandiser
Key Insights
- The speaker identifies that replanning has shifted from being a safety net to becoming the main operational activity for retailers dealing with inventory challenges
- Cotton On's strategy involved making go-to-market decisions as late as possible to gather maximum information before locking things down
- Retailers are putting more emphasis on core offerings by trimming peripheral products and doubling down on what they're known for to reduce risk exposure
Topics
Transcript
[0:00] are there any tactics that you've seen from retailers to try and take back some control of either that inventory in or inventory out and try and get a little bit more planning and consistency around that yeah look there are a few things that they're doing i mean certainly in my space merchandise planning you know um replanning is fundamental you know having having a look at how things are performing and then reforecasting what things are going to look like and um not even only at the [0:31] you know the granular skew level but at a more macro level across categories and for the business as a whole and that activity has become just like not…
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