800% stockturn boost for SitStay
Improved stockturn meant that money spent on inventory turned into profits significantly faster than before using Inventory Planner.
Dog supply merchant SitStay, an eCommerce presence since the mid 1990s, now faces a crowded and highly competitive market space. Using Inventory Planner allowed SitStay to identify opportunities for new product launches and to improve profits.
With online and in-store sales, SitStay needed a way to use their purchasing budget to get the best return on investment. Not having the right products would mean missed revenue. At the same time too much stock on hand is money that could be used elsewhere in the business. Information about product performance by category or vendor was needed in order to ensure margins and stockturn met company targets.
Inventory Planner provided in-depth reporting showing which variants performed best through Shopify’s online sales channel and with Shopify POS. SitStay’s in-store sales of dog supplies showed different product types selling well compared to online sales. Toys were much more popular in-store while treats were best sellers online.
Using demand forecasting with Inventory Planner, SitStay could identify which items and how many to order from suppliers. By focusing on top selling items, they could clearly see purchasing recommendations to meet customer demand both in store and online.
Demand forecasting also allowed SitStay to identify which items were overstocked. Clearing out these items generated revenue from dead inventory while making space and cash available to purchase new inventory.
SitStay improved overall stockturn by 8x by liquidating overstock and making sure that the right products were available to customers when and where they wanted them. This meant that money spent on inventory turned into profits significantly faster than before SitStay used Inventory Planner. Syncing online and POS sales to Inventory Planner meant better planning for what customers on each sales channel would want to buy.
Reporting available in Inventory Planner provided business intelligence to SitStay to adjust pricing to meet targeted margins. Analysis for POS sales channel showed what items were in high demand for that location. Monitoring stockturn for each vendor and variant produced better cashflow for the business.