In today’s world, consumers are overloaded with a sense of choice and loyalty is something won and lost in an instant.
In a typical city, a few square blocks can provide multiple opportunities to buy the same goods at different stores. Now, imagine a consumer who, with all this choice, had selected your store to purchase the item they seek only to find that you’re currently out of stock.
I know what you’re thinking, “This is my nightmare!” and for good reason. You’ve not only lost a sale but you’ve also created the perception of unreliability within that consumer. Future purchases will be predicated on past experiences, which means that this particular consumer may not visit your store first.
Now, let’s take that same scenario and finish it off with a sale. Wasn’t that more enjoyable?! As a consumer, that was certainly more enjoyable from my standpoint and I’m sure as a business owner you share that sentiment. The goal should be to make sure that this is how all of your customers’ experiences end. This is where vendor managed inventory (VMI) can prove invaluable because it aligns your goals with your customer’s goals. Everyone is happy.
Overhead is often the silent killer of any business. Having to store inventory not only takes up floor space but also leaves you vulnerable to selling dead stock at reduced prices in order to move it out the door to make way for new items. The result is reduced profit for your business and that’s never a good thing.
VMI aims to prevent this from happening as your supplier would take the onus on storing your stock for you and only delivering it to you when you’re going to need it. With up-to-date sales data being continually passed through to your supplier, levels can also be adjusted when necessary to make sure that you’re only going to get what you’re going to sell.
These reduced costs to your business can then be passed along to the end consumer which helps you either stay competitive or stay one step ahead of your competition.
Find out more about iQmetrix VMI and our other integrated solutions: