Every business has their pre-defined supply chain usually the terminology is from a manufacturer to distributor to retailer or manufacturer to retailer, but what happens when a retailer gives back goods to the manufacturer which didn’t work well or a brand with a franchise or owned store gets leftovers units or get customer returns via e-commerce which is also known as reverse logistics, hence there is always something lying at a warehouse which is not making any money for a business owner, moreover, the business is at more loss because of holding the goods at the warehouse, rent, salary, stuck working capital etc.
In Fashion, Summer merchandise is typically purchased in the fall-winter, as we now spend our summers by sheltering at our homes, and retailers are now faced with a dilemma: in the midst of COVID-19, there’s an unprecedented amount of inventory that will remain unsold.
To check whether you hold excess stocks the number one aspect you can verify with inventory turnover ratio. Inventory turnover ratio is calculated by dividing the cost of goods sold for a period by the average inventory for that period. Average inventory is used instead of ending inventory because many companies’ merchandise fluctuates greatly throughout […]
Any activity associated with the backward movement of goods and services in the Supply Chain, whenever a consumer applies for returns of goods either through stores or easy service and free door pickup provided by eCommerce companies, it moves back to backward supply chain, the reasons for returns can be many due to sizing, fitting, […]