In addition to the right people and tools, retailers also Best Practices in need a high-level sourcing strategy or at least a set of guiding principles.
and how purchasing links to other areas of the business,” says Cullum.
Here are five procurement best practices you can explore as you begin to develop a detailed strategy:
- Understand the why: Start by clearly Best Practices in understanding your objectives. This could be inventory levels, cost of production, required profitability, or product delivery times. Start with an initial analysis to create a solid vnpay data roadmap of what needs to be accomplished and the key performance indicators (KPIs) that must be achieved.
- Have backup suppliers: Continue to look outside of existing vendors and supplier relationships. Even if current pricing or products are working well, it’s important to continue researching sources of supply so you have the flexibility to replace a supplier if necessary. Your procurement shouldn’t become too reliant on a single supplier, as this jeopardizes the entire process.
- Study demand trends: Understand when to increase or decrease supplier orders at certain times of the year, based on consumer demand. This demand can change depending on the season, the impending holidays, economic turmoil, or market trends.
- Go beyond cycle counts: “Many purchasing managers are turning to cycle counting to ensure cost-effective inventory flow and record accuracy.” Cycle counting involves counting a portion of your inventory instead of why do light bulbs burn out? taking inventory of all your items at once. “Cycle counting is just one tool, however. It can actually work against you if your cycle count is done infrequently and in isolation, without considering related data trends,” says Nick Drewe, CEO and co-founder
Mastering public markets
As you can see, retail supply is a living process. Retailers must Best Practices in constantly monitor the results of their efforts and make adjustments as singapore number needed. But with the right strategies, the right people, and the right tools at your disposal, you can get everything you need as easily as possible.
To get started managing your inventory, forecasting, and finding suppliers, chat with our experts to learn how Lightspeed can help
