Now that we’re at the end of the year, our Grinch is definitely going to be the stock-outs. What are you going to do to fight him? Find out here how to avoid stocks-out at Christmas.
This Christmas we will finally all be together again and we will all want to bring home that gift for that special someone. However, due to the new COVID variants many of the suppliers are experiencing delivery delays and slowing down the supply chain, so we don’t have as much stock as we would like in the shops.
In addition, after this explosive Black Friday we have had, you may find that many of your points of sale are not as attractive, as explosive or as buoyant as you would like to face this Christmas season, which is the most important in a long time.
We recommend that in order to deal with this situation and to prepare your shops for this Christmas season, you should follow a transfer strategy.
How to avoid stock-outs at Christmas with a stock transfer strategy
As you know a stock transfer is a movement of goods from point A to point B, two points of sale, when we do not have enough stock in our warehouse to supply our shops.
Normal inter-store transfers
The basic requirements for considering a transfer are that point A has an overstock of that product, i.e., that we have more weeks of coverage than we are willing to assume, and that point B has the same product that is suffering a stock shortage.
In other words, we have 0 stock that is also producing a loss of sales, i.e. an opportunity cost.
This would be a normal transfer, but we also have a second type of transfer that we specifically recommend to protect your visual merchandising, and that is concentration transfers.
What do these transfers consist of?
We must first establish some Visual merchandising rules. In other words, we must define which sizes are mandatory for each of our models and we must protect these sizes.
In all those points of sale where the protected sizes are not available, we will eliminate the model completely and transfer it to a second point of sale.
Don’t be afraid to remove some of your strongest models at one point of sale, because it is much more effective to have that model in its full size in 3 points of sale than to have it with scattered sizes in 70 points of sale.
In the end, we want the consumer to enter your point of sale, fall in love with that product and be able to find the size he/she needs.
How are you going to ROIvolute this Christmas?
Did you find it useful? Don’t miss this article for more tips on how to deal with the supply chain crisis this Christmas.