Shrink, workforce, store systems, and consumers are the most influential factors for reducing your inventory management costs.
By Erin Harris
Inventory can represent the largest asset on a retailer’s balance sheet, accounting for 60% to 80% of retailers’ total assets. Effective inventory management can have significant impact on the company’s overall financial success. Dave Haller, VP sales and marketing at WIS International, explains how retailers can lower costs associated with inventory and how to improve the inventory process.
What costs do retailers incur in carrying inventory, and how can they lower these costs?
Haller: One of the most significant expenses associated with inventory in retail locations is shrink. Shrink occurs in two primary areas – administrative error and theft. Theft results from both internal and external sources. The first step in controlling shrink is to understand where and how it is occurring. An accurate physical inventory provides a solid starting point to begin this analysis. With an item-level inventory, a retailer can compare actual inventory to system inventory and identify departments, product classes, and items that account for the highest levels of shrink. This information will allow more targeted analysis to assist in identifying and eliminating the root cause of the shrink. Products with high levels of shrink can be packaged, merchandised, and distributed differently to help reduce losses associated with shrink. Loss prevention efforts can also be focused on areas of the store with highest levels of loss associated with shrink. Read full article
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Green Retailing - Did you know?
"61.9% of Consumers say they use some type of environmentally-friendly product."
"20% Price premium they are willing to pay for "clean, green products over non-sustainable alternatives."
"59% of Retailers are saying that implementing a responsible and green-oriented sourcing and procurement plan is a crucial element of success."
"89% of Retailers see at least some value in green initiatives."
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While we love talking about our business, we thought you would like to hear what our customers have to say about WIS....
CHEP
Thank you for your efforts you and your team have made in partnering with us in fulfillment of our third-party needs. Your commitment to continual improvements have been well received within our department and the company as a whole.
According to Gary Galavotti , Operations Manager with WIS International, “We’ve worked closely with CHEP to establish service metrics for their inventory projects. It’s been a collaborative process and has helped us to meet and exceed CHEP’s project requirements. We’ve both been pleased with the results and are looking forward to continue to provide excellent service to CHEP.”
WIS’ focus on training, accuracy, cost containment, and timeliness are all significant facets of the inventory process. As opportunities have arisen, your organization has shown your dedication to providing a quality product. Your responsiveness is certainly appreciated.
BethAnn Zimmerman
Customer Inventory Manager
CHEP
CVS
"Congratulations on the near perfect results on our recent Annual Inventory Review. WIS has worked tirelessly to provide best in class service to CVS and that effort was rewarded. Your teams are always well trained and properly staffed and this was reflected in the excellent results reported on our Annual Inventory Review. I would like to thank everyone at WIS for all their hard work and for making the inventory process as easy as possible for our operations people."
Bob Coggshall
CVS Caremark
Director of Inventory Control
JCPenney
"I wanted to thank you and W.I.S. for your quick responses to our request for assistance following Hurricane Ike —even when it involved a market that you do not normally service. I appreciate your sense of urgency and follow-through.
Thanks again for your continued partnership and your team’s rapid help in trying situations."
Cordially,
Blake Avery
JCPenney
Retail Operations-Project Manager
In-Store Shrinkage Awareness & Inventory Processes
Conoco Phillips
"As we enter into our sixth year of working together I want to stop for a second and say thanks. When we began the process of auditing our inventory with an outside firm I had concerns about quality and accuracy, but WIS has been a great partner to our operations group and to our corporate team. WIS continues to quickly meet our service needs and our custom technology needs with quality and accuracy. So, thanks again for the work you do!"
Terry Beene
Director Loss Prevention
ConocoPhillips
Golf and Tennis Pro Shop
“Thank you for everything you and your teams have done to help us prepare and execute our first inventory with WIS. We continue to hear nothing but positive feedback from our stores regarding the delivery of your quality product. It’s nice to know we’re working with an organization that is as passionate about service as we are.
During the counts we continue to learn about changes needed to the variance reports. The WIS team continues to deliver the required changes quickly and accurately. Speaking on behalf of all our operators…THANK YOU. We have never had such wonderful tools during the count to confirm accuracy and unfortunately in some locations to reveal shortages. The execution by your team has been outstanding! No one can argue about the quality of the counts”
Gene Harper
Chief Financial Officer
Golf and Tennis Pro Shop
Wal-Mart Stores
"Wal-Mart Stores, Inc. truly supports and values the partnership built with WIS. WIS has a continuous focus on professionalism, leadership development, efficiency and accuracy. With improved accuracy and efficiency year after year, WIS has raised the bar in regards to inventory standards. Teams have shown impeccable accuracy results and exceptional customer service ratings from Store Managers through 2007."
Sincerely,
Brandy S. Reese
Internal Audit Manager
Family Dollar
WIS International has been an inventory service provider for Family Dollar Stores, Inc. since 2002. We have been very satisfied with their performance and have increased their market share accordingly. They have been extremely responsive to our operational and technology needs. I would gladly provide a positive reference regarding their service.
Gregg Toland
Director of Inventory
Family Dollar Stores, Inc.
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Daytona Beach, Florida is well known for NASCAR, warm tropical weather and sandy beaches. It is also now the home of the newest WIS Office. WIS has added a new office in Daytona Beach to meet the growing needs of our increasing customer base.
The Daytona office will help fill in the gap between our Jacksonville and Orlando offices and provide greater coverage of Florida for our retail clients.
WIS is proud to offer complete coverage of North America.
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WIS International is proud to welcome New York & Company as a new client. With over 550 retail stores across the U.S., New York & Company is a leading specialty retailer of high quality women’s fashion apparel.
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