ic Strategies for Fashion Inventory Management Is this company using any “creative” (read: less-than-ideal or even fraudulent) accounting to hide poor performance?įor both internal employees and external stakeholders, effective inventory management is an essential component of running an apparel business.Does this company operate in an efficient manner when it comes to production and sales?.While investors may use different methodologies to assess a company’s inventory, they are seeking the same answers to questions like: Inventory ratios over time indicate how well an organization moves from production to fulfillment of customer orders. Investors look at a company’s inventory to assess its health. On top of that, too much inventory means there’s the chance of loss due to damage, lost items, or theft. Healthy businesses maintain a healthy cash flow, and they can’t do this if money is tied up in things like additional labor hours for managing inventory, additional space for storing inventory, or higher insurance costs. While holding inventory is an inescapable part of doing business, holding too much inventory can be a weight around your business’s neck. Keeping Carrying Costs LowĬlothing inventory management costs money. If customers can’t rely on you to have the on-trend items you market in stock, they will stop visiting your virtual or physical storefront and turn to more reliable vendors. Over the long term, stock-outs erode customer trust. More likely, they will look to another retailer to fulfill their need, especially in the context of online shopping. In the short term, retailers lose out on a purchase and there’s very little chance that a consumer will wait around for the item to come back in stock. Stock-outs can negatively impact a customer’s short-term and long-term behavior towards a brand. Preventing Stock-Outs and Increasing Customer Satisfaction Investors increasingly look at a company’s inventory to assess its health.It keeps carrying costs low and prevents retailers from tying up vital capital in things like storage space and insurance.It avoids stock outs and increases customer satisfaction.Good fashion inventory management is important for three key reasons: Why Does Apparel Inventory Management Matter?
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The Challenges Of Fashion Inventory ManagementīONUS: Before you read further, download our Warehouse Management Guide Whitepaper to see how Logiwa uses real-time inventory tracking to help customers get up to 100% inventory accuracy and increase shipments by 2.5x.Enterprise Resource Planning (ERP) Tool with a Warehouse Management System (WMS) Integration.Mobile-Based Apparel Inventory Management Tools.Basic Strategies for Fashion Inventory Management.Preventing Stock-Outs and Increasing Customer Satisfaction.Why Does Fashion Inventory Management Matter?.In this guide, we’ll help you understand:
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