This very interesting and (somehow) surprising AT Kearney Report suggests a new way to boost sales for low-volume items, applying a new way of thinking in assortment and replenishment. While in the situation when the items do no sell very well usually the reaction is to reduce assortment, the opposite approach – pushing the products into the stores in minimum quantities – has been shown to increase sales and reduce inventories without raising costs!

The approach suggested in this report implies a new way of assortment management, where people in the point of sales invest their energy in what they do best – merchandising and building costumer relationship – and the supply chain is managed in a pure centralized way.

In order to apply with success such a strategy the assortment and stock level of the point of sales has to be 100% managed by central buying. As the cost, pricing, margin and marketing strategies are outside the control of shop managers/ shop sales team, so the supply of this product/ranges should be out of their responsibilities. The focus of the POS team should be on the sale process, which is consuming already plenty of time and resources.
Click here to download the report

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