Rotation of goods

This article describes the sales speed of a product in retail stores. For the inventory key figure, see inventory turnover .

The goods rotation ( English product rotation ) is by trading company a financial ratio which of the reciprocal value of the average storage life of a product in stock or sales shelf is. The counterpart is the logistical range .

General

The limiting factor in retail is the sales area , with which the sales revenue per m² of retail space is measured as area productivity . For this reason, space productivity can only be improved by increasing the rotation of goods or by increasing prices. A higher rotation of goods can, in turn, be achieved by fast movers that are conveniently placed along the contact path. This includes consumer goods that only stay briefly on the shelf space, which can be explained by a high repurchase rate among consumers .

Consumer goods

For consumer products is between goods ( English convenience goods ) and household goods to be distinguished. Consumer goods are characterized by a high repurchase rate, are often low-priced ( cheap goods ) and require simple purchase decisions . This class of consumer products includes butter, cheese, milk, sweets and beverages or handkerchiefs, toilet paper and cosmetic products. Consumer goods, on the other hand, are used over a longer period of time and are only bought again after they have worn out. Therefore, they have a much lower repurchase rate and are often more expensive . The purchase of these products is planned longer, the purchase decision is more complex. The consumer goods include clothing, household items, motor vehicles, furniture and entertainment electronics ( English shopping goods ) or luxury goods ( English specialty goods ).

detection

The goods rotation is determined as the reciprocal of the inventory turnover rate, because the storage period, i.e. the length of time an item remains in the warehouse or shelf, plays a role:

${\displaystyle {\text{Warenrotation}}={\frac {\text{Lagerumschlagshäufigkeit}}{360\,{\text{Tage}}}}}$.

If the inventory turnover increases, the storage duration is reduced and vice versa. The shorter the storage period, the higher the goods rotation. The rotation of goods shows how long goods remain on a shelf. It is usually given in rotations per year , but also per month, week ( grocery retail ) or even day ( kiosk ) depending on the industry . The rotation of goods is highest with fast movers, decreases with normal movers and is very low with slow movers.

Fast movers

In fast-moving ( english fast moving consumer goods, fast movers , FMCG, in the jargon, "Renner") is the stock rotation highest. This includes food and beverages , personal care products , cleaning products and, above all, daily newspapers . The latter have the highest product rotation because the period between appearance and product obsolescence is particularly short (“nothing is as old as yesterday's newspaper”). For magazines such as SPIEGEL , 72% of all copies go over the counter on the first day of sale Monday (“Monday is Spiegel day”), on Tuesday only 14% and on Wednesday 6% of the circulation. In the case of newspapers and magazines, the rotation of goods is not influenced by the right of returns . In the case of goods, the perishability is high or the shelf life is low, which speeds up the rotation of the goods. Fast movers have a lower out-of-stock rate than slow movers. Sales , special offers or end-of-season sales are also associated with high product rotation.

Slow moving

In slow-moving products ( English slow-moving consumer goods, slow movers , SMCG; in the technical jargon "bum") is the smallest goods rotation, it that an increased storage and sales risk represent. This includes all consumer goods, the rotation of which can be as long as 1 year (e.g. new cars) or more. Gaps in the shelves are relatively more common with slow movers. Due to the longer storage period, the slow- moving items incur higher storage costs , so that, due to the price calculation, they tend to be more expensive than high-speed items.

economic aspects

The rotation of goods is directly related to the existing storage capacities. Slow-moving machines use them the longest, so they have the highest storage costs. Therefore, the capital commitment and the liquidity burden are of great importance for them. Due to the limited sales area, the shelf capacity is limited, so that it is particularly important for small businesses to achieve a high level of space productivity with many fast- moving items . This also applies to shops in areas with a high number of pedestrians and a correspondingly good business location , because the space costs ( rental costs ) are very high here. Space productivity can also be improved by reducing the number of slow-moving items or by increasing prices. Avoid shelf gaps due to delivery bottlenecks ( supply shortages ) or hamster purchases (sudden excess demand ) without any rotation of goods or the opposite of excess inventory . When purchasing, it is therefore important to ensure that the supplier is ready to deliver at all times .

See also

• ABC analysis # Fast and slow moving items
• Sales dates
• marketing
• consumption

Individual evidence

1. ↑ Marcus Stumpf, The 10 most important future topics in marketing , 2016, p. 149
2. ↑ Jan-Philipp Büchler / Anna Czerny, Das Insider-Dossier: Marketing & Vertrieb , 2011, p. 12
3. ↑ Jan-Philipp Büchler / Anna Czerny, Das Insider-Dossier: Marketing & Vertrieb , 2013, p. 12
4. ↑ Manfred Weber, quick introduction key figures , 2006, p. 167
5. ↑ Karl Kaltenböck: The red cabbage indicator: Simple chemical and physical examinations for school, house and garden . Books on Demand, 2017, ISBN 978-3-7431-0743-4 ( google.de [accessed February 15, 2019]).
6. ↑ Insa Sjurts (ed.), Gabler Lexikon Medienwirtschaft , 2011, p. 4
7. ↑ Tina Simone Placzek, Optimal Shelf Availability , 2007, p. 4