Books | Stationery | Toys
Books, Toys & Stationery Sector:
Books, Stationery & Toys industry has grown enormously from the last few decades. There has been a steep rise in the influx of foreign brands in this industry as they see huge potential in the Indian market for the growing middle-class population & increased brand awareness. Books have been replaced by kindles & manual toys have been replaced by digital ones. Thus, the industry is growing, just the way of doing business & the horizon of products changes.
Challenges faced by Books, Stationery & Toys Industries:
Books being one of the bulkiest products, managing the inventories, returns & condition of the stock become points of great concern. Toy industry being trend-driven, managing the inventory to ensure there is an inflow of new ones periodically, must be well-planned. Inventory buying must be system-driven & not choice-driven. Stock replenishment at the appropriate time with right quantities is an important aspect
It is extremely important for these industries to have their warehouse as a “distribution centre” and not “godown”. These products are driven by the “latest in the market”, so we must cut down the processing time from generation of PO to the products reaching the shelves, to minimum. The layout plays most important role in efficient flow of goods & reduction of operating cost. The distribution centre must be divided into different areas and each one should have a definite purpose & responsibility. Thus, at Your Retail Coach, we develop SOPs for warehouse right from inward to outward, including the distribution centre layout.
Cash Flow Management:
Even though the brand is clocking excellent numbers, it is equally important to keep a check on the profitability of each cost centre and the cash flows. Since the inventories are huge, there are high possibilities of cash flow mismanagement due to low inventory turnover ratios. Each purchase for every category must be well planned based on the data of our previous sale and vendor-wise stock movement.
Day-to-day operations, right from display to cash counter, from sales to housekeeping, from security to maintenance, from accounts to stock management, the entire operations must be well defined. Every company must have these processes documented, called “Standard Operating Procedures” which will help them to carry out every process on daily basis & hold team members responsible as well as accountable. Job Profile, Reporting structures and forms & formats for each department must be standardized and well defined to ensure the brand runs in an organized manner.
At Your Retail Coach, we develop SOPs, help is developing the ideal layout for fast processing of goods & also develop strategies for cash flow management.
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