Inventory Control in Footwear Industry

Inventory Control

• Definition: Managing the stock levels of footwear products to ensure the right quantity, at the right time, and at the right place to meet customer demand.
• Objectives:
  • Minimize stockouts and overstocking
  • Optimize inventory levels and reduce waste
  • Ensure timely replenishment of products
  • Improve customer satisfaction and loyalty
• Key elements:
  • Forecasting: Accurate demand forecasting to determine the required inventory levels
  • Lead time: The time it takes to receive new shipments, which affects inventory levels
  • Safety stock: Extra inventory held to mitigate stockouts during periods of high demand or supply chain disruptions
  • Inventory turnover: The number of times inventory is sold and replaced within a given period
  • Dead stock: Inventory that is no longer saleable, often due to being outdated, damaged, or discontinued

Product Assortment Planning

• Definition: The process of selecting and organizing a range of footwear products to offer to customers, taking into account their needs, preferences, and shopping habits.
• Goals:
  • Offer a compelling and relevant product range to customers
  • Maximize sales and revenue
  • Minimize inventory costs and reduce waste
  • Enhance customer loyalty and satisfaction
• Key considerations:
  • Product categorization: Grouping products by type, style, or feature to create a logical and cohesive assortment
  • Product depth and breadth: The number of products within a category and the range of categories offered
  • Product life cycle: Managing products from introduction to discontinuation, considering factors like seasonality and trends
  • Customer segmentation: Tailoring the product assortment to specific customer groups, such as by age, gender, or lifestyle
  • Vendor partnerships: Collaborating with suppliers to develop exclusive products, improve quality, and reduce costs

Inventory Control

• Ensures the right quantity of footwear products are available at the right time and place to meet customer demand
• Aims to minimize stockouts and overstocking, optimize inventory levels, and reduce waste
• Improves customer satisfaction and loyalty

Inventory Control Key Elements

• Forecasting: Accurate demand forecasting determines required inventory levels
• Lead time: The time it takes to receive new shipments, affecting inventory levels
• Safety stock: Extra inventory held to mitigate stockouts during high demand or supply chain disruptions
• Inventory turnover: The number of times inventory is sold and replaced within a given period
• Dead stock: Inventory that is no longer saleable, often due to being outdated, damaged, or discontinued

Product Assortment Planning

• Selects and organizes a range of footwear products to offer to customers, considering their needs, preferences, and shopping habits
• Aims to offer a compelling and relevant product range, maximize sales and revenue, minimize inventory costs, and enhance customer loyalty and satisfaction

Product Assortment Planning Key Considerations

• Product categorization: Grouping products by type, style, or feature to create a logical and cohesive assortment
• Product depth and breadth: The number of products within a category and the range of categories offered
• Product life cycle: Managing products from introduction to discontinuation, considering factors like seasonality and trends
• Customer segmentation: Tailoring the product assortment to specific customer groups, such as by age, gender, or lifestyle
• Vendor partnerships: Collaborating with suppliers to develop exclusive products, improve quality, and reduce costs

A quiz about managing stock levels of footwear products to meet customer demand, minimizing stockouts and overstocking, and optimizing inventory levels.