Numensa Training 2015 BUYING FOR INDEPENDENT RETAILERS

Transcription

1 BUYING FOR INDEPENDENT RETAILERS

2 Hello Catherine English Senior Consultant at Numensa Retail Consulting, Trainer in Merchandise Management 4 th Generation Retailer. David Jones Ltd, Metcash Ltd (Mitre 10), Coles Supermarkets Ltd, DuluxGroup Ltd (Yates). Buyer, Product Developer, Trainer and Mentor. 25+ years in Retail Buying & Product Development Graduate Diploma in Management, Certificate IV in Vocational Education & Training.

3 An Important View Point on Buying : As a Buyer (or planner) you don t simply acquire merchandise; YOU are in fact managers of money. Every decision you make has an impact on your company s level of turnover, its profits, its cash flow and its return on investment.

4 Challenges Facing Retailers Today

5 Tips to get you started STAY CONNECTED Understand your Customer! PLAN BEFORE YOU BUY! BEST PRACTICE Supplier Management

6 Understand your Customer!

7 Plan BEFORE you BUY!

8 Improved Processes = Improved Profits Right Merchandise Right Quantity Right Place Meeting the organisation s financial goals Right Price Right Time

9 The 9-stage planning process Plan Build Track Allocation Deciding how best to achieve planned profit Getting every line right Getting the product from development to warehouse Pushing stock out to the right stores Review Analysing past performance for future learning Getting the right product in the right place is a cyclical process whereby the buying team works cohesively to achieve optimal outcomes Markdown Profitably clearing out of date stock Promoting Making every promotion profitable and drive sales Replenishment Warehouse stock used to maximize sales potential Trading Forecasting based on sales and stock performance

10 Why is Pre-Season Planning Important? AIMED AT MAXIMISING THE RETURN ON INVESTMENT Investment In: Stock Space Marketing People Supporting infrastructure

11 Four Key Levels of Pre-Season Planning Merchandise Financial Plan Merch Mix Plan $ / % Location Plan $ / % Width v Depth Assortment Plan

12 The Merchandise Financial Plan

13 Developing the Merchandise Financial Plan

14 What is the Merchandise Financial Plan? In Summary it will assist with: Planning & managing purchases Ensuring optimal financial management Managing the performance of the warehouse & store inventory

15 Elements in the Merchandise Financial Plan Markdowns Opening Stock Closing Stock Profit Reserves Net sales Financial Plan Purchases Once these have all been determined, the budget available to purchase product can be calculated

16 Steps in Merchandise Financial Planning 1. Establish the sales levels 2. Determine the stock levels 3. Set the level of markdowns 4. Calculate the Open to Buy

17 BEST PRACTICE Supplier Management

18 Effective Supplier/Buyer Relationships Mutual trust Open communication Common goals Growing Strategic Supplier Relationship s Genuine commitments

19 What Suppliers Want Long term business arrangements Fair financial return Adequate lead times Accurate forecasts Minimum changes to orders Sharing of cost-saving ideas Open relationship Prompt payment

20 Best Practice Supplier Management Prepare In writing Deal summary Regular meetings Supplier scorecard Find solutions Signature Non negotiation?

21 SUMMARY STAY CONNECTED Understand your Customer! PLAN BEFORE YOU BUY! BEST PRACTICE Supplier Management

22 How we can help you? Beverley Chambers Director Asia-Pacific T: M: Catherine English Senior Consultant T: M: E: catherine@numensa.com.au E: beverley@numensa.com.au

23 Discussion!

24 BUYING FOR INDEPENDENT RETAILERS