Inventory management for the winter that never was

Posted by Andrew Bulmer on Apr 2, 2012 2:01:00 PM

This weekend in Toronto I’ll be pulling out my golf clubs earlier than ever to head to the driving range to get my swing in shape for an extended golf season thanks to the “winter that never was”. A recent article by Marina Strauss of the Globe and Mail outlined the effect that the weather has had on retailers forced to discount winter seasonal merchandise and scramble to get their hands on spring and summer merchandise inventories.

 Inventory planning is challenging at the best of times with long lead times for off-shore production, competitive retail pressures, fickle consumer demand, and the list goes on. A warmer 52 weeks of Canadian weather can wreak havoc on some businesses (think ski resorts and snow removal) while providing an opportunity for growth (think golf and sport beverages) for others. Supply Chain, Sales and Marketing need to be working more closely than ever to adjust and manage risk while maximizing opportunity. It requires relentless innovation, evaluation and assessment of their asset mix, sales strategy and marketing / advertising plans to ensure success.

It is no wonder why so many companies are turning to Corporate Trade as a solution. At Active International, we see ourselves as an insurance policy for corporate Canada in an ever-changing business environment. Rather than exhausting resources to liquidate seasonal merchandise themselves at deep discounts, companies leverage our model to maintain the value of their assets. Better yet, to improve their cash flow so they can continue to invest in their business to achieve their goals.

My message to all seasonal retailers who’ve have been hit hard this wacky winter, or who are worried about what mother nature may bring for the second half of 2012? Don’t stress.

If you haven’t yet explored Corporate Trade as a solution, perhaps you should. Don’t exhaust or waste another resource to liquidate stale product. Triple your value and extend your summer/fall media campaign budget without lifting a finger. Sleep at night. Maybe even enjoy a game of golf or two.

 

Topics: Corporate Trade Industry Report, Cost Management, EBIT, Risk Management, A Word from the Managing Director Andrew Bulmer, Supply Chain Management (SCM), Inventory Turnover & Closeouts

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