Page 101 - DMGT553_RETAIL_STORE_MANAGEMENT

Retail Store Management

Notes

Caselet Stock Management

here can be nothing more frustrating for a salon owner than seeing discarded
colour tubes that are only half used, excess product being washed down the drain
Tor not having the most popular treatments or retail products as they’re out of stock.
Having a good stock management process reduces waste and can have a hugely positive
impact on your cashflow.

Zambezi Hair Salon in Wellington, NZ is a great example of a business that does stock
management well.
Here is a summary of their process:

Only one tube or bottle of product is open at a time in each product type.
Each product box is white-stickered when it’s opened and staff members use their
own colour pen to mark on the sticker the amount used and the amount remaining.
This is done by percentage or fraction rather than weight as markers are already on
most tubes.
Client cards are also marked with the amount of product used and are billed for this
amount. At the end of each day, client cards are checked against product used, as
labelled, to make sure both sets of records match up. This closes the loop.
Any product checked out of retail for professional use is clearly labelled for salon
use making it easy to do a visual audit around the salon. Once empty, these bottles
go in the stock bin to be counted.
Once a week a complete stock take is done for both professional use and retail
products by printing off the stock take report and checking actual against expected
amounts. Stock take takes about one hour and is done by the same people each week
(one person checks retail and another checks professional stock) to keep the process
consistent.
Big bottles such as shampoos are only checked out once they are empty which
means they are counted as ‘one’ during stock take until they are finished.
Once stock take is complete, the system is adjusted for variations and stock that is
low is re-ordered using the auto-order by minimum function on Kitomba.

Source: http://www.kitomba.com/blog/case-study-stock-management/

6.3 Taking Care of Quality Inside a Store

Stock taking involves making an inventory, or list, of stock, and noting its location and value.
It’s often an annual exercise – a kind of audit to work out the value of the stock as part of the
accounting process.

Codes, including barcodes, can make the whole process much easier but it can still be quite time-
consuming. Checking stock more frequently – a rolling inventory – avoids a massive annual
exercise, but demands constant attention throughout the year. Radio Frequency Identification
(RFID) tagging using handheld readers can offer a simple and efficient way to maintain a
continuous check on inventory. Any stock control system must enable you to:
track stock levels

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