If you're like many retailers, managing inventory is one of the biggest challenges you face. With all the other expectations placed upon you to manage your business, sometimes you forget to pay the most attention to the area that can have the biggest affect on your bottom line. Your inventory levels. Too Much. Too Little. Old Inventory. Unsold Inventory.
While many of you reading this have been in business a long time and are quite knowledgeable about what sells when in your store, making sure you have just the right amount of inventory can help you improve your overall sell thru and profitability on a consistent basis.
We suggest using an OTB program to help you track selling by department on a regular basis and to alert you to shifts in business - very quickly. Reacting or proactively pursuing these shifts can and will save you money and help you drive more sales and profits to the bottom line for your business.
Whether you buy more merchandise because you react to a positive shift in sales, or react to slower sales by canceling or shifting dates on purchases, you can help your business drive more profitable sales in trending categories while reducing the inventory you spend on departments that are no longer selling by using the discipline of an Open to buy plan to manage your inventory.
If it's all about the King - as in cash, then the next question you should ask is how much money can you expect to save if you use an OTB program? The typical results you should expect from running an Open To Buy will be an improved inventory turnover between 7-10% the first year and a reduction in purchases of between 5-10% for the the first year. These two things alone can pay for the cost of managing an OTB program and so much more.
And while there are tremendous benefits to using an open to buy program, it is not a silver bullet that fixes all that ails your store. You will need to spend time working on and with your open to buy to make it truly successful. You must not be ambivalent about your Open To Buy.
For an Open To Buy plan to fully to succeed, you must be committed to following the plan you set in place and have the discipline to stick to the plan in the course of the year. The results will happen if you stick to the plan!
Need more reasons to bring an OTB plan into your business. Contact CBCG today.