web site updated 3 July 2007

Services for Retailers
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Computer System Assistance

After 17 years in the software for retailers business, I was frustrated by the number of retailers who spent a large amount of money on a system, then 3-5 years later, found that nothing had changed about their business (AKA the Cigar Box Syndrome).

Most retailers purchase software hoping that something will change about their business after the purchase. The goal of a good inventory management system should be to increase stock turns and gross profits, yet most retailers experience an increase in inventory after purchasing a system.

So after 3-5 years, the retailer guesses that there is something wrong with the software and start the selection process again. Then, after another 3-5 years, they will start the process a third time.

Open-to-Buy Management

Do you have the self-discipline to not overbuy?
Do you know when you have overbought?
Do you know what to do when you have overbought?
Are you buying with an eye to your financial statements?

Stock turn rate is the single most important statistic in all of retail and improving STR should be one of your (and your system's) primary goals. (Does your system even calculate this?) STR is made up of two numbers: sales divided by average inventory. To increase STR, either you increase sales or you reduce average inventory investment. Guess which one you can control.

Since you can only minimally affect increasing sales, then reducing inventory becomes the better method to improve STR. An Open-to-Buy, based on improving STR, becomes a necessity for you, the retailer. A well-managed Open-to-Buy becomes your spending limit and helps you stay within budget. If sales fluctuate from the plan, then we will adjust your spending so as to not create a critically over- or underbought situation in the future.

Do you approach inventory management with an OTB or with the seat of your pants?

Procedural Analysis

It always shocks people to hear that 80-90% of shrinkage is internal. Many retailers defend their employees as being honest, yet those statistics on internal shrinkage come from retailers who at one defended their employees (and procedures). I know because I have helped identify some.

Many of these losses occur in a retail business because shortcuts to controls are taken in the interest of time. There is a balance between controls and time management and we can help.

In a procedural analysis, we review the tasks that must be accomplished, determine the best way to delegate the responsibility and then establish the procedure through either a computer or control that will ensure that internal shrinkage is minimized.

If you need help, call toll free within the US, at 866.32.RB101.
Our direct number from outside the US is +1 760.724.0385.

Contact us by e-mail at info@retailbusiness101.com

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