First, We Need To Understand The Principles Of Commodity Management.

To understand the distribution of commodities, we must first understand the principles of commodity management, followed by understanding the category management of commodities.

Commodity management Principle

The business of the shop is centered around the core of the commodity. Therefore, the principle of commodity management should be understood and grasped by every shop operator. The distribution is based on the principle of distribution. What are the principles? There are ten points.

1. commodity first principle

First, commodities are followed by commodities, commodities, and commodities. That is to say, shops are positioned along with the fixed position of commodities, and they are transformed around the positioning of commodities, and are adjusted along with the transformation of commodities. For example, the upgrading of commodities, the elimination of unsalable goods and the development of green commodities can all be understood as guided by the principle of "commodity first".

2. principles of commodity conversion

No matter what products, they must be commercialized before they can be effectively accepted by consumers. Commercialization refers to the whole process of transforming products supplied by suppliers into commodities, aiming at improving the added value of commodities. Mastering and applying the principle of commodity conversion is very important for supermarket operators. It can be said that whoever can accurately understand the rich connotation of commodity transformation and pay attention to the application of practice will master the initiative of operation.

3. the principle of complete commodities

According to a survey data, 70% of consumers think that there are rich varieties of stores. It can be seen that the key to the success of a store is complete merchandise. Only a fully furnished store can satisfy the needs of a consumer. Of course, there are "big and full" and "small and full" points. Large shops are like supermarkets, and everything is complete. Small shops are like franchised stores.

What should be noticed is that many shop operators only pursue the quantification of goods completely, but do not pay attention to the true connotation of the complete commodities, that is, the division of knowledge. Therefore, in operation, we should master the following points: first, the brand of goods, followed by the quality of goods, and then the structure of commodities. We should work hard in mining the subdivision and depth of commodities.

4. preferred principles of commodities

In the operation of supermarkets, most of the sales actually come from only a small part of the commodities. The ratio is roughly between 80% and 20%. Based on the establishment of this proportion, operators must adhere to the principle of commodity preference. Continue to explore small proportion of commodities that create large percentage sales; type a commodities that carefully cultivate customers and generate profits.

5. principle of old goods replacement

Unsalable goods are the cancer of the shops. In order to return the store to a healthy body, there are usually four ways to eliminate obsolete goods.

The first is the ranking elimination method: it applies to all commodities, and determines the list of the goods sold in a certain period of time. The last 200 or 5% to 10% are the objects to be eliminated.

The second method is the elimination of sales volume: it is applied to goods with low unit price, and a cardinal number (such as 250) is determined in a certain period (such as 3 months).

The third is the sales elimination method: it is applicable to the main commodities, and the standard sales volume is measured within a certain period of time, such as 3000 yuan, which can not be eliminated by the standard sales.

The fourth is the quality elimination method: it is applicable to all commodities, which are declared unqualified by the state administrative organs, such as the Technical Supervision Bureau or the health department.

6. principles of commodity value

When setting prices, we must consider the value of the goods from the customer's perspective and let the customers know the value of the goods. Based on the understanding of the relationship between price and value, supermarkets should decide on commodity structure according to the commodity structure: what are profit commodities and which are popular commodities. In short, "small profits but quick turnover, and quantity based pricing" are the basic principles of pricing. Value for money and profit are the ultimate goal of supermarkets.

Two, commodity category Administration

Commodity category refers to a group of goods or services that are easy to distinguish and manage. In determining commodity category, we must achieve three basic goals around meeting the needs of customers: one is to identify, two is to plan, and three is to operate. Categories can also be further subdivided. For suppliers, each category should achieve established but differentiated business objectives.

Commodity category management refers to a series of related activities in which a store divides its merchandise into different categories and manages each commodity as a basic activity unit. The management flow of products as business units improves the operation effect of enterprises by providing consumers with super value goods and services.

Product category management can make the supply chain more efficient. In the short term, there will be higher returns, and in the long run there will be a better foundation for production and operation. For retailers, the implementation of category management will bring a lot of benefits: better cater to the needs of consumers, reduce the phenomenon of out of stock, increase the turnover and profit of categories, make it easier to assess new products, and make more effective use of resources.

　 Category management is a complex and tedious work, which mainly involves the following aspects:

1. determine the number of specific commodities and stores.

Category management is based on systematization, data and timeliness, and requires complete sales data (including commodity code, commodity name and specification description, the name of the commodity company, monthly sales volume, monthly sales volume, unit price, commodity price, commodity profit and return on investment), and the market share data of each commodity should be compared with the actual sales data of the store, so as to make an analysis of the performance of the commodity in the market and the customers. Only those mature categories with the above conditions have the possibility of success.

2. determine the type of goods shelf area and store type.

Category management includes the management of the shelf display of categories, which involves the area of the items that need to be played, and on this basis, a shelf plan can be executed. Determining the type of store is also a condition for category management. On the one hand, the location of different stores determines the role of a particular category in this store, for example, washing products are much more important in a comprehensive store than in a non-staple food store; on the other hand, the size of the shop determines the number of categories and varieties that can be operated. Shops that choose the same type and scale usually bring greater operability and convenience to category management.

3. understand store shelf arrangement and principles

Category management should be based on the degree of contribution of goods to make allocation of shelf resources share map. But in the shelf share of the commodity, it can also adjust the order of the goods according to the different display principles of store shelves. For example, in the same shelf share, the vertical display or horizontal display of goods can be done according to the needs of stores, so that the display of shelves is in line with the uniform shelf arrangement of commercial stores and the principle of commodity display.

4. understand replenishment cycle and arrival time.

Understanding the existing replenishment cycle and arrival time can help us understand the current safety stock days and inventory management level. Through the implementation of category management, we can raise the level of inventory management, reduce the number of safe stock days, shorten the replenishment cycle of inventory, and enable more free funds to be used in the normal operation of stores.

5. meet special requirements

Category management in scientific and fair arrangement of goods shelves in accordance with the sales data, we should also take into account the special requirements of stores, so that goods can be mobilized on the basis of these special needs. For example, although some special specifications of goods are not well sold at present, they have great potential, so they can increase their stocks and shelves appropriately. A lot of factors should be considered before designing the category management shelf, which will make the category management more workable.

6. understanding of new product implementation Technological process

New brands and specifications are springing up in every category. In order not to destroy the display rules of the original category, but also to give new products the opportunity to display, it is necessary to fully understand the new product execution process, display principles and other requirements at the beginning, and formulate corresponding plans, so that category management has stability and periodicity.