From The Co-Founders


Tips, Tactics & Strategic Insights and Commentary
from The ROI Co-Founders, Pat Johnson and Dick Outcalt
Outcalt & Johnson: Retail Strategists LLC; Retail Turnaround Experts

So, What Time Is "Just-in-time"?

Is This Why Many Retailers Fail?

Maybe you've also noticed it. The recent articles about how retailers now have their inventories "more in line" after the glut of excess inventory caused by "supply chain disruption."

Okay. That's good news.

But, what jumps out at us is the frequent reference to "just-in-time" inventory management.

  • Really? Tell us, What is the formula for calculating "just-in-time"? 
  • What time is "just-in-time"? Is it 2 turns on the inventory? Four turns? Six turns? Twelve turns? Or what?!?

Look, if you can't measure it, you can't manage it. And, if you can't manage something, by definition (and experience!) it is out of control.

When we see reports of statements like these, we shudder.

  • "Retailers have more confidence in the overall supply chain and the logistics network and the environment, and as a result, they're saying, 'Hey, I think we're at a point now where we're safe to go back to just-in-time.'"

Is this why many retailers fail? Phrases like "just-in-time" are used by lots of folks, but they are meaningless. 

Instead, members of The Retail Owners Institute are armed with calculations, formulas, whatever they need in order to manage inventory. 

Consider two examples why we believe that followers of The ROI have the strongest financials in the retail industry:

Or, take a look at The ROI's section dedicated to Inventory Control. News-you-can-use resources and tools available for free to anyone. Plus much more in the Owners Center for those with Member Access Privileges. 

Knowledge is power! Especially knowledge for measuring and managing!

Meanwhile, can someone tells us just WHEN is "just-in-time"? Anyone??

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