What to Look for in Retail Technology to Figure Out Performing & Non-Performing Suppliers & their Products?
While maintaining a good relationship with performing and supportive suppliers, it is also advised to be diligent with new and low-performing suppliers.
Here is how? There are simple 3 steps methods:
Compare supplier-wise old or dead stock & sales proportion to identify suppliers whose contribution to sales is far less than contributions to sales.
Identify the average deviation between the proportion of closing stock and the proportion of sales
Calculate the difference between closing stock & sales proportion. Suppliers having a difference of more than the average are to be considered as low performing.
See some of the example of Quick & Broad Analysis and Product-wise reports from Peddle Plus ERP to measure the performance of Supplies and supplier’s products.
In the above figure, If you look at the row number 1 and 5 you will see that the dead stock % of Summit Impex and Green Denim is higher in comparison to their products sale % in a particular given period. The sales contribution is quite insignificant compared to the contribution to dead stock.
Similarly if you look at row number 2 in the above figure, you will easily figure out that stock aging % of Roasted Cashew is high compared the sales contribution % of that particular product. But in this case you can see the overall sales of the product is good but not good compared to the product aging, which will in turn block your capital and occupy your shelf space.
Check if your ERP system is providing such types of analytics to figure out the performance of supplier easily so you can either stop buying from the suppliers who are low performing or stop buying that particular product from the supplier. I will share more insights on Optimizing your Retail Store or E-tail Store Inventory in my up-coming articles. Please share your valuable feedback on my newly created newsletter for retail and retail technology to correct me and encourage me.