The inventory turnover of the pet distributor deserves the attention of every entrepreneur, since it is the thermometer of sales and says a lot about the company’s performance in the market. In addition, stopped stock can generate losses, which, in the long run, compromises the financial health of the business.
The good news is that there are a number of administrative and marketing actions that can be used at your pet distributor to leverage business.
With that in mind, we have prepared this article on how to improve inventory turnover at your pet distributor. Follow!
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But after all, what is inventory turnover and what is its importance?
Inventory turnover is an indicator responsible for measuring the entry and exit of goods from a company’s stock. To reach a number that represents the turnover, it is necessary to understand the functioning of the demands in a certain period (storage).
In an objective way, it is the identification of how many times the stock is renewed. Its importance is due to the fact that preliminary calculations help to identify the number of times per year that goods turnover occurs, and the calculation of the average time that these items are stopped. The information is relevant to the manager, who can assess the global scenario and create strategies to encourage sales.
How can I apply inventory turnover at my pet distributor?
The pet market is quite heated, and it is easy to see that the number of specialized stores in this segment has increased considerably over the years.
But, to prevent products from getting stranded on the shelves, it is essential to use strategies to rotate the stock in your pet distributor, especially in those periods of low demand. Next, check out our tips on how to turn inventory in your distributor!
Celebrate with customers the holidays
Holiday dates like Christmas are excellent opportunities to make promotional actions and increase your revenue! So keep an eye on the calendar of holidays, especially those related to trade, and associate them with product combos and special shopping opportunities. With that, the customer is more likely to buy, keeping an eye on the advantages.
Make promotions whenever necessary
If you need to increase your inventory turnover considerably, promotions can be an ideal marketing action!
The promotion can be used to check out those “stranded” items quickly, as it is popularly known in commerce. It is worth remembering that this is a great opportunity to retain customers from your pet distributor, thus offering different conditions for recurring customers.
Try to improve predictions
Remember to make good inventory forecasts, which is an essential way to reach the minimum value of stocked items. If managed well, you can still create a history based on the previous months and years, which makes it possible to make comparisons, improving the management of the stock as a whole, since the decisions will now be based on the data collected.
Invest in the training of employees so that they are able to give a good image of the distributor, guide customers in the correct way and can still identify repressed demands.
As they are in the front line, it is essential that they have a broad knowledge of the distributor’s products and services. Remember that this knowledge must always be renewed, with refresher courses.
Have technology as an ally
With the market demands ever greater and more demanding, the ideal is to use inventory control management tools. With an inventory management system, you have greater control of entrances and exits, have reports and other functions integrated into the company’s financial, for example, which facilitate the management of the pet distributor as a whole.
As we have seen throughout this content, it is possible to improve your pet distributor’s inventory turnover with actions such as promotions, employee training and the use of technology.
If you liked this article on how to improve your distributor’s inventory turnover, download our 5 product storage tips e-book at your distributor.