The fashion industry has traditionally focussed on lowering Costs of Goods Sold (COGS) to enhance profitability – but it’s increasingly clear that isn’t enough.
Smart fashion retailers are instead shifting their focus to inventory [and inventory planning specifically] and the impact which issues like overstock and stock have on their bottom line.
Why?
In recent years, we’ve seen time after time how holding a high inventory at the wrong time can kill profitability – and ultimately prove devastating.
Leading retailers – from Gap and Walmart to Joules and ASOS – have all hit the headlines after running into major problems linked to holding too much inventory.
To boost profits, modern fashion retailers need to focus on modern inventory planning solutions such as:
Real time data
In the current retail landscape, today’s best-selling product can quickly become tomorrow’s cash-drainer.
Real-time data, synced across your tech stack with a secure integration so it’s 100% reliable, is essential so you can monitor demand and take action to stop slow-moving items clogging up your warehouse and becoming obsolete.
It also offers vital insights on pricing, so you can make tweaks to maximize returns.
Trends analysis
Right now, trends can emerge (literally) overnight. By being able to understand and predict trends, you can know which items will be in high demand and ensure you have the optimum inventory mix. This means less chance of running out of the next big thing or ending up with a pile of unsold stock.
We’ll be talking all about mastering trends in our upcoming masterclass exclusively for fashion brands – it’s free so reserve your place now!
Overstock reports
Inventory Planner customers get access to a best-in-class overstock report that‘s packed with insights they can’t get anywhere else, like last sold date, overstock units and overstock costs.
It’s a powerful tool that makes it easy to liquidate cash flow killers, without having stockouts.
Systems that speed up decision making
There’s no time to dilly-dally when you run a fashion brand. Whether it’s placing an order to meet a shipping deadline or making the call on a promotion, fast action is required – and a software solution that automates time-consuming workflows (like creating POs) and gives you all the information you need in one place is essential.
📌 Want to get better at analyzing seasonal trends?
Register now for our upcoming masterclass: How to Master Fashion Trend Forecasting and Boost Sales. It’s FREE!