Application Of VMI Mode In Garment Retailing Industry

How do stores deliver goods?

Shop distribution is mainly divided into two angles: what to put and how much to put, what to put in front of a single shop and multiple shop orders have been mentioned, today's main share how much.

Every day people enter the clothing store to see the flow of people is like weaving, money like water, but when we further analyze the single SKU level (single monochrome single code),

On the contrary, it is a standard intermittent demand. The average monthly price of a store is 200 thousand yuan, and the average price of the summer wear is 400 yuan. According to the test, the sale of the product is about 3.32 pieces per month, while the average value of the other styles is only 0.21 pieces per month.

Based on this situation, we introduced the concept of target inventory, which literally means how much stock should be placed in accordance with the set goals, which is like a group of people drinking at a table. When we do not know the amount of alcohol, the best way is to get everyone first to drink.

Most of our shop's 90% bar code is set at the beginning of the season 1. First, let the shop sell and sell it to see which one sells better.

The difference between traditional mode and VMI mode in store distribution

How to adjust store inventory

There is a lyric: love always guesses the beginning, but can not guess the ending.

Just imagine, the size of a single shop is under the intermittent demand rule. In addition to individual explosions, we may have an estimate. In addition to guessing the right amount, we must guess when to sell; guess a case and guess all the money; guess a shop must guess all the stores; guess today, we have to guess the future every day.

It is like our 1000 shops, *200 color *3 size =60 million forecast, at least every day to predict so many times, and this has exceeded the scope of manpower, let alone take into account the upstream supply anomalies, the integration of shops, weather changes, various measures of competing products, so the vast majority of enterprises here made a compromise, that is, with a limited commodity personnel guess the trend of a week, and then the head of the shop to show their brains to make corrections, right wrong can not be seen, the level of prediction without visualization method steadily improved.

Projected push distribution

Since it is impossible to predict the amount of alcohol per person at a large banquet, the unified management of the beverage is delivered to the diligent waiter. She is responsible for the continuous pouring of wine (replenishment) and the replacement of larger glasses (target stock adjustment). Some people find the fastest speed in a few glasses of wine, then change the middle cup, then do not change the bowl, or drink quickly and put the bottle directly at hand.

Similarly, some people slowly pour their own, some people liquor, beer, red wine, yellow wine for change, the waiter to do is to adjust the wine cup according to the speed of drinking, and constantly pour wine, even if she didn't know everyone's alcohol consumption at the beginning.

Then, in target inventory management, we divide it into black / red / yellow / Green / Blue boundaries to show that the stock is not enough for sale.

Target inventory management

When the standard of inventory is defined, the rest is adjusted continuously according to the sales, the algorithm of adjusting the high and low in the specific procedure is relatively trivial, and the configuration of different parameters according to different brands' retail rules will also be different.

According to the retail automatic adjustment curve, we can see that when the sales are better, the target stock will be gradually enlarged from the initial 1 pieces to continuously deal with sales.

Adjustment curve

Under the premise of constant performance, the average stock of a single store can be reduced by about 50% by means of target inventory management. When VMI shops achieve the same performance, they only need about 50% of the stock in the traditional mode, while those that are not allowed due to the forecast are omitted.

The difference between traditional mode and VMI mode in inventory adjustment

How to replenish the store?

In fact, there is nothing to say about the replenishment of a single store. The rules are the following three:

Target stock > actual inventory + inventory on the way, the difference is the replenishment quantity.

Target stock < actual inventory + on the way stock, no replenishment this time >

When the central warehouse is out of stock, store the surplus goods from some stores back to the warehouse and continue to replenish the remaining stores.

This is like half the banquet, and the speed of each table is different. The last thing to do is to return the table to the table, and then distribute it to the table that can be drunk, and concentrate on the "clean up" of the stock.

According to Professor Li Shanyou's Internet thinking, the rules of a single SKU may be very simple. But when the previous rule of target inventory adjustment passes through 1000 stores and 600 thousand SKU in different time and space, forming group behavior, with the help of the central warehouse closed loop pivot, the interaction between simple rules among neighboring individuals can bring out the overall complexity, which can best match every shop every day.

Matching.

Rules of locusts and birds

To sum up, the share of time limited today is the realization of the target store management part of VMI system in terminal stores.

This is a changing world. We are continuing to improve and constantly integrate frontiers, interdisciplinary and more professional knowledge. We welcome more friends to join us in the collision of ideas, and continue to improve the importance of consumers today.