The development of the shop-specific assortment – the monitoring of products with low inventory turnover has started

Now that the monitoring of products with low inventory turnover has come into effect, the change will affect approximately 1% of the allocated products. The main ideas of the model are the following:

• The allocated products must reach a sales requirement for allocation in the shops to which it has been allocated within the monitoring period. The sales requirement will be reviewed every monitoring period. For the monitoring period that has now began, the requirement is the sales of 20 euros without tax.
• If the sales requirement is not met in a specific shop, the shop is released from the allocation of the product for the next 24 months.

The information about the product-specific sales can be found on the weekly sales report. Two new columns will be added to the report:

• Shop-specific sales requirement for allocation unmet within the ongoing monitoring period (amount of shops)
• The column states the current amount of shops in which the product’s sales requirement for allocation has not been met. The numbers are reviewed weekly. In the beginning of a monitoring period, all of the shops to which the product is allocated are included in the stated amount. Gradually the number will decrease. The goal is to reach a zero when moving towards the end of the monitoring period. If a zero is reached, all of the shops within the allocation have met the sales requirement for allocation.

• The amount of shops released from the allocation
• The column states the currently valid number of all the shops that are released from the product’s allocation. The number is updated every four months when a new monitoring period begins. Therefore the first numbers in this column will appear in February 2017.

More information:

Mika Tiilola, controller (mika.tiilola@alko.fi)