How to improve your inventory management to make you earn more?

Writer： Zhongda vending machines Time：2022-05-17 08:22 Browse：℃

Vending machine operator inventory management is an important indicator to assess the level of core competitiveness of an operating company, and an efficient inventory management model has an important impact on improving the profitability of the operating company.

So how to improve inventory management?

The first style: Optimize the Commodity Structure

The first thing to do is to optimize the inventory management. A relatively balanced commodity structure is not only the basic guarantee of business operation, but also the basis of inventory optimization. Commodity structure is reasonable or not will directly affect the quality of the operator’s warehouse management.

The structure of commodity items is too long, too deep, etc. will make the proportion of slow-selling products increase, resulting in inventory backlog; while too small, it can not meet the actual operational needs, thus causing a decline in service satisfaction and business losses. Therefore, the optimization of commodity structure is the first step to optimize the inventory.

The three rules of commodity structure optimization are:

1. 1.Determine the category width based on the number of aisles. Since the number of aisles in vending machines is limited, the width of merchandise categories (major categories) should be refined according to the different types of equipment, not too long and not too short.

2. 2.When the width of the product category is determined, the length of each product category (specific items under the category) can be gradually determined according to the 20/80 principle.

3. According to the sales amount and sales quantity of two indicators, respectively, from high to low ranking, select the cumulative total of 80% of sales and 80% of sales volume of goods. Then set the sales and sales volume of both goods are in line with the key items, only one meets the secondary focus of the item.

4. 4.According to the price band design to determine the depth of the category. Generally speaking, the category depth of the selection indicators are more, such as specifications, price, brand, etc., for the general operators recommended to take the price range to control the depth of the category. Through the determination of the price level, not only can enhance the market competitiveness of the operating companies, but also more reasonable control of the commodity structure, to achieve inventory optimization.

Second formula: Optimize Inventory Structure

On the basis of merchandise structure optimization, due to the versatility of vending machine operation business, any operator’s warehouse may store all the operating merchandise. Therefore, when improperly stored goods, it is very easy to form two conditions of goods out of stock or inventory backlog, and even cause the generation of dull and dead inventory. Therefore, the same need for inventory classification management, the same need based on operating data and the 20/80 rule of sales, sales volume, gross profit for the operation of the product specification for sorting, screening, grading, to determine the key items of goods.

Key stock items refer to: items with high sales volume and fast turnaround time, or some of the monthly sales volume below the minimum purchase quantity, with reference to the sales volume and gross profit ratio of the goods. It is appropriate to take key stock, to ensure that the actual inventory is not lower than the lower limit of inventory, and by the procurement department real-time attention, timely replenishment of the inventory approach. This will not only ensure timely supply to meet the basic operational needs, but also reduce capital consumption. In addition, stocking should also consider the impact of factors such as off-peak season, price fluctuations and new product cultivation.

The third type: Optimization of Logistics Operations

All aspects of logistics operations are important nodes for inventory optimization, such as merchandise purchase, inbound and outbound storage, and in-stock management, all of which must be considered as key points for inventory optimization. In order to achieve multi-level and multi-link inventory management.

In addition to the timing, purchase cycle and order quantity, different purchase modes should be adopted for different types of commodities (such as commodity characteristics, settlement methods, inventory management status, etc.).

Among them, regular goods generally take the cycle replenishment mode, and seasonal goods are suitable to take the economic volume purchase mode. Periodic replenishment mode refers to the purchase of goods in small lots and multiple batches based on the store’s distribution cycle, days in transit, inventory management status and upper limit of safety stock.

Since the sales curve and inventory curve of regular goods are basically the same, they are mostly purchased in the form of periodic replenishment to improve capital utilization and reduce inventory risk. Based on experience, its calculation formula can be referred to: the number of key stocking goods purchased = average daily sales × requisition coefficient × (distribution cycle + maximum safety days) - the actual inventory on the date of purchase (including the inventory in the equipment)

In addition, the economic batch purchase mode is a large batch and small batch purchase mode that takes more into account the purchase cost and storage cost, because seasonal goods often need to be purchased in advance of the sales curve in order to ensure the supply of goods during the peak season and to avoid a large inventory backlog of goods after the season. Based on experience, its calculation formula can be referred to: Purchased quantity = SQRT (2 x demand during the commodity period x cost per purchase / storage cost per unit commodity period), where SQRT indicates the square root.