Inventory Turnover and "Phantom" Stock
Problem: Category managers and merchandising heads had a KPI: zero products with no sales and an average turnover of 60 days. We took products that turned over slower than 60 days, and especially slower than 90, and worked on rotation, display, marketing, and the commercial side. Some items started selling right away, others didn't.
Solution: We started digging into why. According to the system the product was in stock, but physically it wasn't there: incorrect receiving, wrong barcodes, human error. In other cases, it simply wasn't being ordered. We ran an inventory count, fixed the barcodes, set up ordering, and strengthened analytics and assortment control. Then we added control over displays, empty shelves, prices, and promos. Turnover improved from 300 days to 90.
If a product sits for 200-300 days, the question is immediate: why do we need it? Either the manufacturer takes action, or we check the display, or we check the agreements. A shelf that turns over once a year instead of every 60 days generates five times fewer sales.
How often do you audit the gap between what your system says is in stock and what's actually on the shelf?
#Retail #CPG #Merchandising #RetailExecution #InventoryManagement