Thursday, 29 May 2014

Summer IS Coming

Hay Copenhague Barstool (designed by Ronan and Erwan Bourboullec) £206 from Haus, Stelton Cylinda Martini Mixer and Cocktail Shaker £69.95 and £119 from Occa Design, Uniqlo Supima Cotton Sweater £19.90, J.Crew Broken-In Chinos £75, Maison Francis Kurkdjian Zinc Globe Trotter Atomiser €85 (refils for €60) and Acqua Universalis 70ml €110, Acqua di Parma Ginepro di Sardegna 75ml and Deo Spray £54 and £27

So it feels as if I have been setting Seasonal Ideal Stock Levels constantly since the beginning of the year. As I've described before, sales patterns change at Valentine's Day, Mother's Day, Easter and Father's Day, and you need to make sure the stock is in place by using special Seasonal IS levels.

But before July, August and September, I need to review the Standard IS levels. I'm working on this at the moment.
These are generally quite quiet months, with no events (like Valentine's or Mother's Day) to interrupt them. Local customers might go on holiday and be replaced by tourists with different purchasing preferences. And so to realise sales potential, and avoid overstocks, it's necessary to reset your Standard IS levels using last Summer's sales.

To do this, I will calculate the average weekly sales of each product in each store. If a store receives weekly orders and runs on three weeks of stock, I will set their IS level at three times their average weekly sales.

There are special-case products, of course: ones that sell infrequently but of which you need one or two on hand at all times; testers, samples and wrapping (I try to base my samples and testers on sales and my wrapping materials on consumption). But apart from that, it's pretty simple.

September is a small event in my calendar. In France, it's called the Rentrée. It's the time when you get back into everyday life, after your summer break. And some people like to buy themselves something - as a treat after they return to work, or as an inducement to work hard through the autumn/winter, or just because it's a fresh start. So I'll probably check the IS levels against September's sales, come the beginning of August, to make sure the stores won't be short of anything they need.

So this is how my year looks -
January to June - setting of standard IS levels, setting and re-setting of seasonal IS levels to meet the demands of shopping events such as Valentine's Day, Mother's Day, Easter....
July to September - review of standard IS levels
October to December - setting of seasonal IS levels so that the stores are ready for Christmas.

With Father's Day, the last of my spring events, on the horizon, I decided to post a selection of men's merchandise. Have a great weekend!

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