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Strategic Ranging: Approaches to Optimise Stockholding and Reducing Secondary Costs

Ranging strategies play a significant role in operational efficiency and financial health. The chosen approach can significantly influence stockholding and secondary costs.


anging strategies play a significant role in operational efficiency and financial health. The chosen approach can significantly influence stockholding and secondary costs.
Ranging strategies play a significant role in operational efficiency and financial health. The chosen approach can significantly influence stockholding and secondary costs.

There are two contrasting strategies:


Selective Ranging: A Targeted Approach

Also known as focused ranging, where a carefully selected assortment of products, catering specifically to a target customer-base, which ensures the right products are available for a selected demographic.


Advantages are:

  • Reduced Stockholding Costs: Holding fewer products can reduce inventory levels and associated costs such as outdated, dormant and damaged stock.

  • Increased Stock Turnover: A targeted range increases the chance of a higher stock turnover and improved rate of sale.

  • Improved Profitability: Key products in demand contribute a higher percentage to turnover.


Scattered Ranging: A Broader Approach

Also known as wide-ranging, involves offering a wider variety of products, with the hope of attracting a larger customer base, catering to a broader demographic. However, this approach can increase the risk of obsolete and returned stock.


The advantages of a greater product variety are:

  • Wider Customer Appeal: attracting diverse customer segments.

  • Increased Revenue Opportunities: could increase sales opportunities, assuming each product finds its customer.

  • Competitive Advantage: can improve Brand presence.

  • On-shelf visibility: improves shelf space with more product facings.

Strategies to maintain a healthy stockholding

  • Data-driven decisions: Analytics, as provided by BD-Nav, proactively identifies and pre-empts stock issues to guide your ranging strategy and product selection.

  • Inventory Tracking: Identified slow-moving and dormant items can be phased out to reduce stockholding costs and open up facings for more profitable items.

  • Accurate Forecasting: Ensuring correct replenishment prevents over-or-under stock situations.


In conclusion, choose a ranging strategy based on your business model, target audience, and logistical capabilities. Regardless of the approach, leveraging retail analytics and maintaining a proactive inventory management system can help you optimise your stockholding and reduce secondary costs.


At BD-Nav, we're dedicated to helping you make informed business decisions with our advanced retail analytics solutions. Contact us today to learn more about how we can help optimise your ranging strategy and keep your stockholding healthy.

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