Getting stock in.
WHAT TO ESTABLISH ABOUT EACH SUPPLIER
What they supply Prices, and how they change Minimum orders Delivery frequency and reliability Payment terms Returns of unsold or faulty goods
WHY RETURNS MATTER
Some suppliers take back unsold stock, which transfers risk.
WHAT TO NEGOTIATE
Terms, once you have a payment record.
WHAT PAYMENT TERMS ARE WORTH
Real money, through cash flow.
WHY IT MATTERS ESPECIALLY IN RETAIL
Stock is paid for before it is sold.
WHAT TO CALCULATE
How long stock takes to sell, against how long you have to pay.
WHAT A FAVOURABLE POSITION LOOKS LIKE
Selling it before paying for it.
WHAT TO AVOID
Ordering more than you can sell to reach a discount threshold.
WHY
The discount is smaller than the cash tied up and the eventual markdown.
WHAT TO CHECK ON DELIVERY
Quantity, condition, dates and prices against the invoice.
WHY PRICES
Invoice prices differ from agreed prices more often than expected.
WHAT TO DO ABOUT DISCREPANCIES
Raise them immediately.
WHAT TO MAINTAIN
More than one supplier for anything important.
WHAT TO TRACK
Price changes by item Delivery reliability Shortages
WHAT TO REVIEW
Whether each supplier still earns their place.
