7 Produce Life Cycle Events to Monitor for Max Profits
Retailers who manage the product life cycle effectively are the ones who survive the next age of commerce. They are the most competitive, most profitable, and most enduring retail operations on the market. That’s true of both brick-and-mortar retailers and online retailers.
Below are seven events in the product lifecycle that must be monitored consistently in order to keep your retail operation profitable.
- Product purchases – Let’s start with merchandise buying. This is where you make your profit. In order to sell any product, you have to buy it at the right price in order to sell it at the right price. By monitoring all of your buying decisions, you can control your expenses as well as your entire inventory.
- Receipts – If you do any business on credit, you’ve got to monitor those sales that lead to funds not received. Do you have accounts that don’t pay, or that don’t pay on time? They could be affecting your revenues and profits.
- Allocations – Do you have the right amount of each product in the right stores? If you over count or under count, you could be missing out on sales at key retail locations, not to mention increasing the holding cost of your inventory.
- Sales – Sales a key performance metric in any retail environment. When you monitor sales, you must pay attention to the products that customers are buying. Stock more of the popular items and pull back on those items that aren’t selling.
- Transfers – It costs money to transfer items from one store to another. In some cases, the number of transfers may be related to how you allocate your merchandise. Monitor your transfers and set a strategy to reduce how many times you undergo this expense.
- In-transits – You’ll invariably run across the scenario when a customer wants an item and you don’t have it in stock because it’s in-transit–either from another store, from your warehouse, or from a vendor. If this happens to often, you’ll lose sales, and you’ll lose customers.
- On-hands – It’s imperative that you know how much of each product you have on hand at any time. On-hands drive sales. Sales drive revenues, and profits.
How well are you monitoring these product life cycle events? If it isn’t in real time, it probably isn’t enough.