Tag: RetailERP

In today’s competitive retail landscape, accuracy in procurement planning is crucial for success. Retail ViVA, Sathguru Soft’s groundbreaking retail ERP software, redefines how merchandisers approach inventory management, particularly through its innovative merchandising module. One of the standout features that sets Retail ViVA apart is its advanced classification of inventory movement—Fast, Normal, Slow, and Non-moving (FNSN)—an enhancement over the traditional FSN (Fast, Slow, and Non-moving) categories. This fine-tuned approach gives retailers a critical advantage in optimizing store replenishment and improving operational efficiency.

The Power of FNSN: Why “Normal” Makes the Difference

Traditionally, inventory is classified into three categories: Fast, Slow, and Non-moving. While this method has served the industry well, it often leaves a gap in the middle, failing to account for products that neither move rapidly nor stagnate on the shelves. These “middle-ground” items can often be overlooked or mismanaged, leading to missed opportunities for profit optimization. By introducing a fourth category—Normal—Retail ViVA provides merchandisers with a clearer picture of their inventory movement.

The Normal category addresses products that move consistently but not at the velocity of fast-moving items. These products often have predictable demand but require careful planning to avoid overstocking or stockouts. Retail ViVA’s FNSN system allows merchandisers to treat these products with the attention they deserve, ensuring that procurement triggers happen at the right time for optimal replenishment.

Practical Applications: Retail Insights

Retail sectors—such as fashion, electronics, and home décor—stand to benefit immensely from Retail ViVA’s enhanced FNSN system. Let us explore how this unique classification model improves planning accuracy across different categories.

1. Fashion Retail: In the fast-paced world of fashion, trends can change overnight. Fast-moving items might include the season’s hottest trends, requiring rapid replenishment to meet demand. However, classic items like white shirts or black blazers, which fall into the Normal category, often sell steadily across seasons. These items might not see the same rush as trend-driven pieces but are still essential for store rotation. The FNSN classification helps merchandisers accurately forecast stock levels, ensuring that these wardrobe staples remain available without overburdening inventory costs.
2. Electronics: Electronics retailers deal with fast-moving items like new smartphone models or gaming consoles, where demand spikes quickly after launch. But what about everyday items like cables, chargers, and headphones? These products might not move as quickly but are essential for steady sales. Retail ViVA’s Normal category ensures that these regularly purchased items are properly stocked without overwhelming procurement triggers typically reserved for fast-moving gadgets.
3. Home Décor: In the home décor industry, seasonal trends play a significant role in driving demand. Fast-moving items like holiday decorations or trendy furniture pieces may sell out quickly, requiring frequent replenishment. However, staple items like neutral-toned rugs or standard-sized picture frames, which fall into the Normal category, move at a steady pace throughout the year. Retail ViVA’s system allows merchandisers to distinguish between trendy, fast-moving items, and long-lasting, consistently popular ones, ensuring accurate procurement planning and improved stock rotation.

Open to Buy Integration: Streamlining Procurement

Retail ViVA’s merchandising module goes a step further by fully integrating the “Open to Buy” (OTB) mechanism, enabling merchandisers to streamline procurement planning effortlessly. OTB allows businesses to set budget limits for purchasing while ensuring that inventory levels are optimized for sales. With Retail ViVA, merchandisers can easily follow pre-configured OTB guidelines, automating requisition generation and ensuring that stock is replenished, when necessary, without overspending or overstocking.

When combined with the FNSN classification, Retail ViVA’s OTB functionality creates a dynamic system where fast-moving items trigger immediate action, Normal items are continuously replenished to meet steady demand, and Slow or Non-moving items are handled with caution to avoid excess inventory. This seamless integration ultimately leads to better financial management and sharper procurement strategies.

Accurate Planning: A Competitive Advantage for Merchandisers

Merchandisers are constantly faced with the challenge of balancing product availability with the need to control costs. Retail ViVA’s merchandising module simplifies this challenge by providing real-time insights and automated processes that drive smarter decision-making. With the introduction of the FNSN classification system, merchandisers gain a more granular understanding of inventory movement, enabling them to fine-tune procurement and replenishment cycles with unprecedented accuracy.

In retail, where products have diverse life cycles and demand patterns, this enhanced system can mean the difference between efficient stock management and lost sales opportunities. By leveraging Retail ViVA, merchandisers can ensure that the right products are always available at the right time, helping retailers stay competitive, reduce costs, and ultimately, increase profitability.

Conclusion

Retail ViVA’s revolutionary merchandising module, with its unique FNSN inventory classification and seamless OTB integration, empowers merchandisers to take control of procurement planning with greater precision. Whether in fashion, electronics, home décor or any others, Retail ViVA offers a robust solution that ensures optimal stock rotation and enhanced profitability. By moving beyond traditional inventory classifications, Retail ViVA provides a critical advantage to merchandisers who are looking to make more informed, strategic decisions in an ever-evolving retail environment.

Incorporating FNSN into procurement processes is not just an operational enhancement—it is a strategic shift toward smarter, more accurate inventory management, positioning retailers to thrive in an increasingly competitive marketplace.