Jian-yan Electric business: Inventory is not equal to a good cut inventory is not reduced size

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Some people say: shopping malls or network shops to reduce the SKU (Editor Note: SKU, that is, inventory units, inventory in and out of the measurement of the most basic value) is equal to reduce the scale, really? Whether from the 28 principle or ABC analysis, we can see: At present, many of the electrical business of the inventory is not large, but feel that the storage area of goods is never enough. The site's operating SKU has been dazzling, users still reflect the purchase of goods or the shortage rate is high.

Wen/guest writer Guo defends

In the march, into the 2 billion target of the Jiuxian net to take measures, SKU was cut, one swoop from 2000 to only 700. This makes a lot of people can not understand: in this category of large-scale profit of the electric business era, when Jingdong, when, Suning easy to buy (micro Bo), Bowser, such as Big B from the vertical to the department store era, Jiuxian nets do this is not from the abolition of martial arts?

Certainly not, Jiuxian data proves: Good sell SKU always good sell, bad sell, even if low price dumping, bundle sale, buy a send two edge still.

To elaborate begging to eat

For example, the vertical class of consumer good buy in the initial period of creation, SKU reached 10,000, brand category covering all brands, of course, a lot of virtual inventory, customer experience is huge difference. 09 years good buy a large number of reduction SKU, to ensure "real warehouse real sales." Although the style and type of shoes will be reduced, but consumers will be guaranteed to purchase as long as the goods, so that greatly improve the good music to buy self-control products, but also to ensure efficient inventory of statistics, more to avoid the brand for enterprise goods use more intervention to ensure a better purchase experience.

Jing Dong when the same, most people do not understand jingdong when they expand the category, in fact, also in the continuous streamlining SKU. It is clear that Jing dong when so far also dare not call himself a supermarket or department store, always or mall. We all know that the mall is never a department store. Department stores there is not necessarily a commodity mall, the mall's merchandise positioning is certainly higher than the department store.

So to do a good shopping mall must be more accurate grasp of their own user groups and supply chain. In particular, to do a vertical type of purpose electric dealer, should be vertical more vertical, so as to make the supply chain fine finer, to elaborate begging to eat.

The current development stage of e-commerce is actually the rough stage of traditional commerce in the beginning of the 80 's reform and opening-up. At first, as long as there is money, dare to set up a factory, regardless of any industry, competition without barriers, orders such as water, labor cheap. Later, the development of 5S Sports, ISO 9000 quality certification to the pursuit of JIT management, and so on, in fact, is to elaborate the process of begging to eat. In this process who goes first this step, who can survive, because the cost is more and more high, the competition is bigger, the profit is more and more thin.

Jiuxian Net marketing vice President Li Bin thinks: if the domestic electric business enterprise or impetuous, can not quickly to the mother--retail enterprises to learn, roots, but blindly pursuit of mutation, then this section of resentment may become part of the network to buy the fate of the platform. From his two sets of PPT data, we can see why the Jiuxian network is now going to slash the SKU:

Therefore, the author of the 2012 Electric Business "Winter theory" does not agree. There would have been no business of making money from the collapse of the sky. At the same time borrowed fire is always hard to light their hearts. At present, we just entered a multifaceted of the era of the world, a serious homogenization of the business model, to fight capital, low price vicious competition strategy, there is no strong supply chain system, can not hold the inevitable will fall.

Supply chain refinement starts with chop-SKU

Some people say: shopping malls or network stores to reduce the SKU is equal to reducing the scale, really? Whether from the 28 principle or ABC analysis, we can see: At present, many of the electrical business of the inventory is not large, but feel that the storage area of goods is never enough. The site's operating SKU has been dazzling, users still reflect the purchase of goods or the shortage rate is high.

The author through more than 3 years of research and practice that: when the turnaround days of goods can be 30 days turnover once, the dynamic sales rate between 85%–90%, then our supply chain must be healthy. Conversely, the cost of storing goods will be more and more high, storage area will be more and more demand.

This month I was in the "Electric Dealer Inventory Control: KPI and security stock for means never enough" in the nail: How many million flat electricity warehouse in fact for the electric business and there is no worth to put in the mouth to show off the capital. There are only two data that are really worth showing off: The turnaround days and the level of turnover.

So where do you start chopping SKUs? The author thinks: the product strategy of the predecessor plan must be more economical than the latter.

Often many of us before the opening of the business, because of the lack of SKU structure plan, it can only be based on procurement resources, all categories of goods into the mall/channel stores, after the opening of the mall/channel stores to carry out SKU merchandise plan adjustment. The result of this is often the commodity can not be marketable, can not meet the needs of customer positioning, and then the "Winter vulnerability." Typical first building, after drawing. I am in love Baby Island Mall to go through such a detour, offline head office in the mall on the line before the near 5000SKU, online shopping mall after the discovery of children's bed, toys, such as the high margin of goods is not suitable for online sales. Transport vulnerability is a problem, the user does not assemble is another problem, the most fatal problem is that parts are easily missing or damaged. Lead to 4 million of the inventory to recall the goods toss.

Therefore, the process of making the SKU plan correctly before the line is: The electric trader needs to analyze and judge the environment of the business district first, according to the market position of the retail business, the demand of the customer, judge the future sales expectation, then plan the development status of the future electric business according to the operation process. Set the base for each SKU number.

The second stage is the SKU plan adjustment during operation. Although the electric dealer has already developed the detailed SKU plan before the on-line, but along with the electric business expands, to the business district environment understanding as well as the target customer group's clear, the SKU plan also will adjust with the commercial district environment and the mall/channel shop localization change.

In order to ensure the scientific and accurate SKU quantity of commodity structure, increase the adaptability and flexibility of the mall/channel shop to customers and market, the electric dealer can make the annual SKU target according to the number of SKU per month in the year.

Typically, the post adjustment cycle of the electrical business SKU Plan is performed periodically, usually once a quarter. The cycle of SKU adjustment can reflect the ability of the electric dealer to deal with the external environment, on the other hand, it will help the mall/channel store to have better market position.

The monthly SKU plan is based mainly on the seasonal and promotional plans of the commodity, and the annual SKU plan is designed to better control the SKU plan as a whole. However, it is necessary to note that the frequent or drastic adjustment of the SKU plan also affects the shopping tendency of the target customer group, which may result in the loss of the customer group.

When the basic commodity structure is determined, the remaining SKU plan maintenance and implementation will be very important, this is the mall/channel shop customer orientation and competition-oriented embodiment.

Vicious Circle: The SKU increases yearly, the inventory increases

The main cause of this problem is the electrical business in the implementation of the commodity SKU plan and the problems arising from the application. We should:

The first aspect: the electronic business needs to carry on the strict management and the control to the commodity introduction. In daily purchasing management, new products are often introduced regularly. If not strictly controlled in the introduction of new products, will lead to the work of the previous efforts are weakened, not only will continue to increase the number of SKU, but also destroyed the original commodity structure.

Many electrical dealers in the procurement management of the use of relatively loose control methods, or the introduction of new products into the evaluation indicators, which is not conducive to the implementation of the SKU plan. It is necessary for the electrical business to develop a more stringent control process for the introduction of new products, such as: we jiuxian the implementation of the "into one out of one" policy (only when the product is eliminated to enter new goods), can guarantee the rationality of the commodity structure.

Second, periodic inspection of the completion of the SKU plan. With the introduction of the system management, but some electric dealers in the implementation process will also appear a lot of deviations, if there is no perfect SKU plan inspection process, will bring a lot of trouble.

In order to ensure the reliability and timeliness of the inspection of the commodity structure, the electrical business needs to establish two inspection process for the commodity structure of the mall/channel shop: One is the weekly or monthly merchandise structure integrity order check; the second is to check the integrity of the merchandise structure for the period of 3 months or half year.

Control and clean-up of unsalable goods

Of course, control and cleaning unsalable is also an important part of the rationality control of the dynamic pin rate and the SKU structure. How to control and clean up the unsalable goods?

First of all, specify the method of judging unsalable goods, when the goods in the mall/channel store sales performance when it can be identified as unsalable goods, for example, some electric dealers will be more than two months without sales of goods as unsalable goods.

Then, analysis of the causes of unsalable goods, according to the problem of the unsalable goods to take countermeasures. For example, in the mall/channel shop daily operation Management process, daily operations responsible for the morning meeting to involve unsalable commodity tracking, which requires IT departments to submit daily channels (such as: Taobao channels, Pat Channels, Beijing-east channels, etc.) as a unit of unsalable merchandise list. According to the list, the operators are urged to take measures to deal with unsalable goods as soon as possible, and the purchasing department will get the same list of unsalable goods and meet with suppliers to discuss how to solve the problem of unsalable commodities.

All of these efforts are aimed at minimizing the potential losses to the electrical quotient as a result of unsalable goods, and solving them as soon as possible by means of returns or promotions. Among them, the operation and the procurement department at the same time, is the key to effective control and clean-up of unsalable goods.

Daily tracking is to keep the tracking of unsalable goods as the electrical business Operation and procurement department management must pay attention to daily work. Electric dealers can not find unsalable goods first thought is to return, in fact, the focus is to analyze the real reasons for unsalable, whether there is a better solution.

Of course, in the process of clean-up of unsalable goods, if the reason for the confirmation of Unsalable is because of the commodity itself, then the introduction of new products to replace unsalable goods is necessary work, otherwise the number of SKUs in this category will be reduced. Although this is not a very strict principle, it is very important to maintain the balance of the whole SKU quantity.

If the electrical business in the entire management process to develop a clear and detailed control process and management system, and in the mall/channel store day-to-day operation of the good to carry out, will be able to make the mall/channel shop in an efficient operation state.

The final conclusion: the SKU is not the more the better, in the already refined refinement as a source of profit today, especially vigilant, lays results can not be long.