How to deal effectively with Enterprise inventory

Zhang also forest enterprise management practice of how to deal effectively with inventory in August, a Taiwan responsible apparel production enterprise I talked about how to effectively deal with the inventory. Because the inventory process related to level a broad the deeper end of the meeting, due to the time constraint, then failed to make a deeper conversation. Now the enterprise inventory case study: reason: the enterprise since 2000 expansion since last year, sales in the factory has nearly 2 billion, while inventory is more than $ 2 million, have been seriously inhibited the development of the enterprise. Analysis: inventory process necessarily involves product sales, at the same time, so much of the inventory results also illustrate the enterprise in the production and marketing of a serious problem. Processing inventory must both. ? Because inventory and inventory to increase speed, my approach is to first diagnostic reasons, the remedy, then the inventory. A three-step approach: first step: diagnosis of the cause of the stock. Why diagnosis of inventory in the first place because the enterprise has a long history, but also of inventory stock levels in recent years more and more, if to deal with the inventory, the old inventory has not been processed, new inventory you have exceeded the old inventory, it will cause enterprises struggle to cope with. Therefore, to deal with inventory, you must first enable the inventory is no longer increasing, it is necessary to identify the cause of it. I see there are five main reasons: 1, raw material quality, the price does not cross the border, as a direct result of poor product quality, higher production costs; 2 production quality does not cross the border, killing 3 mass return; and sales forecast inaccurate, resulting in mass production, but can only be sold out one part of it; 4, product design, can't win market; 5, management, pricing, advertising, vendor selection, supplier management, and so there is no master, resulting in a variety of reasons for return. Step 2: targeted to address the causes of the inventory. For these reasons, the solution is as follows: 1, strict raw materials into the gateway. From two aspects: on the one hand to select the supplier (you can set up a dedicated vendor management), mainly refer to the quality of raw material, supplemented by a reference price, selecting the right supplier, but note that quality does not meet requirements, the vendor must not to; on the other hand, strengthen the supervision and management of the purchaser, ceases the Kickback, buyer purchasing to a raw material, must be approved by the production department, quality Department, Administration Department, financial Department and other departments of supervision, production department, quality Department cannot be used, some don't; administrative sector, financial sector there are doubts, to give full attention to investigation by multiple parties to determine their doubt exists. 2, strict production quality. First, to the problems of product research, analysis, production processes raw?? machines or technology? if it is a raw material, it is necessary to grasp the material into the off the shelf life of raw materials, if the identification is because certain procedure unreasonable, that will improve the process; if a machine problems, it's time to change that could repair, not vague; if it is a technology, the need to strengthen the technician training and production workers, the poor out of technology. For production of management, each work must be done very carefully to ensure that no risk. 3. strengthen sales planning. Different times volume will not be the same, different year quarter would not be the same, because sometimes the order of the dress of the competitors but also, of course, there are many other reasons. Enterprises need to competitors, seasonal sales and trend guide and prediction, potential market, other potential causes of poor sales, etc. In response to competition, to grasp their own location, to grasp their own advantage. Give two analysis: (1) a company covers ten products, point faceted, insufficient funding, brand, you must analyze the main profit source (strong), uneconomic products temporarily to competitors, focus, strong product further, then through a strong lead vulnerable; (2) a company in three provinces have product, each province has many competitors, we share in each province are not large, but opponents in each province's share is not large; that is, leaving, which does not have a strong brand in. This time, we should focus on one of the advantages of centralized, other brand, and then riding than winning, taking advantage of the momentum of airborne breakthrough other provincial market. Seasonal sales is a relatively common problem, climate change may cause the product to market sooner or later, and influencing product design, the need to pay more attention to this area. Trend forecasting needs company guidance and planning departments, advertising, sales and design departments to communicate more frequently. Potential market, other potential sales of the reasons is the need for relevant departments to discuss. These issues must not commit empiricism, individualism, idealism of error, multi-party negotiations, the decision on a case-by-case basis. Because the specific address of variables is large, there is no detail on it. Fourth, strengthen product development management. This issue has already been mentioned. Here also is more programmes, pay more attention to fashion magazines about coverage, but also an in-depth market survey, only touch on various aspects of the situation was clear, the heart will have future product model. (5) strengthening management effectiveness and intensity. Management contains more involving brand, price, quality, advertising, promotion, cost, consumer buying power, consumer buying mentality, vendor selection and management, and so on, every issue has an abstraction, but interrelated, allowing management to become confusing. In General, focus on the following aspects: first, to sell the brand. Not in sales in the brand, the product will never sell only at low levels. This process includes branding, advertising, marketing, vendor selection, Terminal choice, etc. Second, the value you want to sell. Who's buying things about a value, the value of the word, from consumers to purchase mentality, brand, quality, advertising, price, service, and so the only consumers think value for money will buy and dissemination. Third, vendor management. Select vendors to consider their sales skills, reputation, network, meets the company's operating purposes, and many other aspects, these many enterprise has its own set. HereFocus on vendor management. Each garment enterprises have a return rate, i.e. the percentage of orders allows return, usually in the 30% above the rate for manufacturers and distributors of profit/loss is critical, the higher the return rate, the more manufacturers, vendors are making more worth it. Vendor returns, there is a big reason is because the quality of our products and pricing, value. Me in front of a lot of related issues, it is hoped that the seller of the products in the hands of time is absolutely perfect commodity, only do this step, manufacturers in the vendor's eyes only status is only possible on the vendor's management. On the vendor's management, mainly in the following three aspects: 1. master of the order. Why do you want to master the order because the vendor if an order is too small, can cause sales to other brands, you can take advantage of organic; if an order is too large, will encourage manufacturers, and distributors sales not out, causing extensive inventory. Orders, manufacturers mean grasped the production progress and accurate sales to distributors, is the most appropriate sales. To do this, there are two problems to solve: on the one hand, manufacturers want to sell a full range of in-depth study, based on product sales up (this is most clearly manufacturers) accurately, through a more professional than vendor's marketing plan, make recommendations to them, make them believe that you are expert, you can obtain the programme sales authority greater profits. On the other hand is the vendor's inventory. Manufacturers must be calculated based on the sales of reestablishing the best inventory sessions, more than the minimum number of days you want to increase the stock order quantity, exceeds the maximum number of days of inventory to reduce inventory. Sales inventory changes can be used as one of the main basis for production. 2. management of vendor products out of the price. Vendors out price too low, easily creating market-distribution, flows of goods; the price is too high, will retail chain result in higher prices, thus affecting Terminal consumer demand, ultimately influencing product sales; the price suddenly subsides, likely market trends, and also damage the company's image. To manage the price, it should be noted that three issues: first, to the vendor to provide the most authoritative out price guide, and grasp the vendor's out of the price, the retail price in the control terminal of the smaller proportion to float. Second, product promotion policies in place, mainly activities timely and promotional gifts, promotional knowledge transfer in place. Third, product prices, in the shortest possible time to understand the vendor's implementation, in particular, note that some vendors, the terminal may delay the sale date, if not the price, profiteering. 3. improve the quality of vendors, Terminal. Vendors and Terminal quality construction, not only in sales but also the corporate brand image, through training, and reward the two hands to upgrade. Training is the company profile, marketing idea, the needs of distributors, Terminal with work how to get to the finish and information collection, marketing, management, etc. Rewards and punishments are applications and lower the credit rating, for a special incentives and penalties, giving staff support and staff support. Here are details. Step three: properly handle existing inventory. On a clothing brand, the most important is the launch of new products, has introduced a new style, on the one hand to the creation of brand image, attract consumers; on the other hand is designed to give the "new" and thus the commodity fashion sense to increase the added value of products. Inventory management, typically take a discount. Traditional discount method: 1, in your own shop discount. 2, big shopping centre in your own branded store discount. 3, their own brand of special franchise stores consolidated sales inventory item. First, the second method is to use its own inventory and sales with new products, discounted inventory items with new products with a relatively low price, able to attract customers, but the discount prices will affect the new advantages of sales performance, will make the launch of the new people, new products in time and become a discount on merchandise, and seriously affect the profitability of the goods. The third method requires a lot of money, but because such sales is a small, small, as a sideline to, the effect may not be ideal. In trademark applications l hot over the last two years, a fourth method: 4, for the second mark, as brand management, inventory through the Deputy brand to low sales. The disadvantages of the four methods: first Deputy brand sales lead to duplication of production departments, such as trademarks to withdraw before the change will affect the workers initiative; the second is small, Vice-President, brand awareness or even no one heard, although sales price is set lower, but not necessarily sales move; 3 If the associate brand sales network and is the same as the brand's sales network (very few manufacturers as a pair of brand to create a new sales network, because this kind of input is often not worth the candle), consumers can easily be put as the brand and the sub-brand comparison consequences will be more difficult to predict. So, is there a better way?, relatively small inventory 5, the inventory of goods sent to discount clothing shop sales. Now, many places are there discount clothing shop, some are open in large shopping malls, such as the Tianhe City Department store brand special on the seventh floor. In the famous pedestrian street or other commercial Mong. These discount shop set up world's famous brands, such as Pierre Cardin, CD, Nike, Reebok arboledas, etc, with these brands sold together, no one would "diaojia infants", but will also increase brand awareness. 6, relative large amounts of inventory to inventory for: merchandising to secondary area, brand sales normal sales outside the circle, such as blind spot sales, to discount store prices form clear introduction. Its advantage is that not only affect the sales of new products, more conducive to fostering future sales markets. But when you select the sales area is important to note that if you accidentally delayed went up to the normal sales position, to timely decisively to stop discount sales, correct handling of complaints.