Seasonal inventory – Take control
How well aligned your assortment with the overall strategy of the business? While a well thought-out assortment can generate a huge amount of profit, an ill-balanced assortment can have a hugely negative impact on a company’s margin. Use this checklist to assess the effectiveness of your assortment and gain greater insight into impact of product lifecycles of items within your range.
The majority of unsold inventories come as a direct result of the very first purchase order. Before introducing a new product, you should develop a clear process to ensure that items are phased in and out effectively. Furthermore, given that each phase of the product life cycle requires a different approach, it is vital that the inventory is managed accordingly. For example, a new product that is ready to be introduced will have very different demand characteristics to a product that is in the final phase of the PLC.