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Thread: Inventory management

  1. #1
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    Thumbs up Inventory management

    Inventory management
    If you don’t know your inventory and you don’t carry current products. You are going down hill dude. Opticians, Optometrists, Ophthalmologists, Sales professionals, Management Officers etc. every body is invited to take part in this discussion. Are there any Sales Reps around? Please come forward, introduce yourself and your products and most importantly please tell us what features or benefits make your products superior to others.
    Sam Hamadani
    my new e-mail address is

    hamadani_99@yahoo.com

  2. #2
    Master OptiBoarder Alan W's Avatar
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    Inventory Management . . . serious stuff

    Most "shop" owners don't place high regard on inventory management. To some I've known, it's taboo, cause its retail thinking, and we certainly don't want that, do we?
    But Inventory Management is the only way of controlling shrinkage (yes, shrinkage can amount to thousands of lost income).
    The topic of shrinkage is very diverse. Here's some elements of shrinkage that we should all know about:
    1, Remakes in the lab. It's one thing to reorder lenses. But its another thing to deal with the cost of it. The lenses we have we broke, replaced due to warranty we don't or can't get credit on, need to be handles on the books so we can either pay taxes on them as income, or should be deleted from inventory and written off as damaged etc. and have not been sold.
    2, Customer exchanges need to be separated out if not resaleable.
    3, Shoplifted product is taxable even if not sold unless we delete it from the inventory.
    4, Items we comp or mark down for faster sales should be treated separately.

    Do we sell off the board?
    Then we should track sales of them. There is a good chance there is dead merchandise that is costing money. A lot of us have perfect memories about off the board sales. But in a small shop tracking inventory "turn" can be critical. Once a year? 5 a year? Tracking the "turn" will tell you if it is worth it to keep an item. Are we anal retentive? Can't let go cause you just know someone will walk through the doors looking for that one frame you've had for 6 years. Over that 6 years that slot on your board could have sold 25 frames at a heck of a lot more profit. The space has depreciated so much your accountant has fallen on his back, legs up, laughing to death!

    Do we use the frames on the board for display only?
    Then at the end of the year . . . what you started with is what you ended with. Yes? No?
    Do a quarterly inventory and see what's still on the board and see how many of them you've sold on order. If you haven't sold manyof item #23456 by the second inventory, maybe you need to send it back or blow it off.
    A good "turn" is 5 times a year, I'm told. I say . . .
    If the items has not paid its rent in real estate value for that slot/that quarter . . . yank it! You're not in the business of charity to the IRS, and your dream customer ain't walkin through the door so fast.

    In a small business with 500 frames . . you can lose $10,000 in net profit lickity split by not tracking the movement of your product.

  3. #3
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    Re: Inventory Management . . . serious stuff

    [QUOTE]Originally posted by Alan W
    [B]Most "shop" owners don't place high regard on inventory management. To some I've known, it's taboo, cause its retail thinking, and we certainly don't want that, do we?
    But Inventory Management is the only way of controlling shrinkage (yes, shrinkage can amount to thousands of lost income).
    :hammer:
    Alan:
    This is a great response and thanks for the serious tips.
    Let me point out another serious method of shrinkage. When the owner/company trusts just one person blindly (it may be him/herself the owner) and gives all the purchasing power to him/her only. Here is what happens:

    Sales reps can influence you and oversell or even dump inferior products in your store.
    If you don’t know what is going fast and what will turn into old dog you are in trouble.

    Alan:
    Here are my points:
    5. Keep frame inventory by vendor so when the vendor comes in, you can tell what you ordered, what was sold and what is just sitting there. Many a times when a sales rep calls on you and all of his/her product is scattered in all directions, he/she will say great you did wonderful job. See there is nothing left, and here he/she goes sells you another bill of goods.
    6. Sale reps should see you by appointment only roughly
    every eight to twelve weeks.
    7. Good inventory management = minimum number of venders.
    8. Add or delete a vendor not by good looks, your liking or disliking of the rep but by the performance and profitability of the product.
    9. Purchasing person should not be allowed to receive any favors or gifts from the vender.
    10. Price and quality comparison is extremely necessary. Beware of discounts and spiffs and what is hidden behind it.
    Lab A sells you for $2.00 a pair of stock lenses, no discounts and also charges you shipping/handling.
    Lab B sells you for $1.75 a single lens gives you 20% discount and also doesn’t charge you shipping/handling. Big deal!

    If I know what are the frequently used powers I will go to Lab A, place a larger order and ask for bulk rates.
    11. I will keep an adequate inventory of Hi index and AR coated lenses in larger blanks for minus powers, a little inventory of plus powers but smaller blanks.
    12. Plus powers for small frames especially half frames I will order from the surfacing lab.

    Please correct us if Alan and I are wrong.
    Thanks
    Sam Hamadani
    Last edited by sam hamadani; 05-28-2001 at 02:00 PM.
    my new e-mail address is

    hamadani_99@yahoo.com

  4. #4
    Master OptiBoarder Alan W's Avatar
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    Re: Inventory

    I agree 100%
    You've said a lot.

  5. #5
    Bad address email on file Mark Rice's Avatar
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    I often wonder what how many times a year a frame should flip. 5 seems like a good # as someone metioned. I use compuliknk eyecare advantage software and it does allow me the advantage of seeing how many times a frame as sold and often I see some reps leave them on the board when they visit so it does take monitoring yourself. I also have found keeping the vendors frames in order on the boards is much better than having them scattered all over. If a patient wants to see a frame in a color we do not have we often have that color in another model made by the same company and it is easy to spot when the boards are organized like this. Its worth the time to those considering making better use of thier time.
    From TEXAS YOU ALL take care now you hear....MARK

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    Mark,

    I just went through a week of training on the compulink advantage software and have spent hours upon hours entering all of the information required just to set up tables and put in my inventory of 600 frames. My mind feels like mush! I was impressed by the features, but was wondering what input was not necessary, if you know of any. Will it get easier once we are up an running? Our whole office is electronic medical records and this past Friday it just seemed as if the computer was taking so much time! Our official first day is this Monday the 11th and the Doc has 18 patient's scheduled. Yikes!
    What are your likes and dislikes of the Optical portion and some helpful advice would be appreciated! My email address is about to change, so I don't mind you posting your reply on the board. Thanks!

  7. #7
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    Training on the compulink

    [QUOTE]Originally posted by pedseye
    [B]Mark,

    "I just went through a week of training on the compulink "

    Dear Pedsye:
    Similar feelings, though different experience, when I first learnt driving it was very uncomfortable for many days. Then all of a sudden I started enjoying it. Once all the data is entered and your fingers know what keys to push you will be all set and won't trade for any thing.

    And please ask Compulink expert to throw some light on the benefits of the features of this software. We all will learn something new and at the same time Compulink will have chance to advertise. And if some other software company is bold enough please come forward and tell us the differences between the two.

    Thanks

    Sam Hamadani
    my new e-mail address is

    hamadani_99@yahoo.com

  8. #8
    Master OptiBoarder BobV's Avatar
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    Sam,

    so nice to see you on the board again!!!

    The way I see it, you sometimes need to have a few dogs to sell the good stuff. I like to do comparisons with the customers, especially when they are looking at the lower end items, give them the pros of why they should by the better one.

    As for your comments on inventory, like Alan, I agree 100%.

    Bob Vartanian

  9. #9
    Bad address email on file Darris Chambless's Avatar
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    Howdy all,

    I just stopped by this thread and see that you all have it under control, but I wanted to give a loud HOWDY! to you BobV. It was a pleasure visiting with you when I was in your neck of the woods and wanted to thank you again for lunch.

    Give everyone a squeeze from "Texas Darris" (ecept for that big guy in the dispensory ;) I don't think he would appreciate it much and might look at you a little differently if you did :) Tell him I said hello though.

    Any way I'm off and running again.

    Take care,

    Darris C.

  10. #10
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    Thanks for adding this interesting point Bob.

    [QUOTE][i]Originally posted by BobV

    Bob:
    So nice to see you too!

    True; you need to have some (not a whole lot) dogs on the board. Infect what we may consider dogs may be hard to find items for some folks. And many a times these old dogs will help you moving newer merchandise as well. Once they find what they were looking for, they are your clients for lifetime.

    I like to make comparisons only if it is called for and it is extremely necessary to point out some of the differences and extra features which may befit the patient in his/her particular case. Otherwise I will never put down any piece of my merchandise.

    Thanks for adding this interesting point Bob.

    Sam Hamadanian
    my new e-mail address is

    hamadani_99@yahoo.com

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