AFTER READING THIS CHAPTER, YOU WILL BE ABLE TO:
While consumers may like sales, too much merchandise with sales tags attached indicates waste, poor planning, and lost revenue. Let's see what lean retailing would look like.
It is Sunday evening and a retailer places an order with a manufacturer for men's jeans in an assortment of styles, colors, fabric weight and finish, waist size, and inseam length. The order is electronic and includes specific instructions for pricing and tagging the jeans with barcodes and sorting them into cartons so that when they are unpacked they are “floor-ready.” Delivery to the retailer is scheduled for Wednesday afternoon.
When retailers “go lean,” they reduce their order sizes and order more frequently ...