Chapter 3: Buying Practices

What You Will Learn

• How to determine the number of product styles to purchase in each merchandise category.
• How to design your own "Assortment Planning" forms.
• How to negotiate better terms with your suppliers.
• How to rate your suppliers against various performance criteria.
• How to correct over-stock situations.
• Advantages and disadvantages of operating a central warehouse.

For those on the retail front lines, the position of "buyer" is one that holds elite status. They believe buyers are constantly being wined and dined by suppliers, and traveling to glamorous places hunting for captivating merchandise.

While there may be a position or two like this somewhere in the world, most of today's buyers are slaves to the computer and the telephone. They are constantly monitoring sales performance, reworking projections for the umpteenth time, and tracking down late deliveries for an upcoming promotion.

Buying is, however, what retail is all about. Great locations, great looking stores and great sales staff aren't worth much if the merchandise isn't right.

Chapter 3

Assortment Plan
Vendor Analysis
Vendor Negotiations
Planned Open-to-Buy
Merchandise Movement Decisions
Central Warehousing: Advantages
Central Warehousing: Disadvantages
Summary
Case Study: Buying Practices

Chapter 3 - Tips