VSEs & SMEs: Optimise your sales and stock management to bounce back in times of crisis

How can you rethink your sales processes, procurement methods and stock management to ensure your long-term survival?

The economic consequences of this global health crisis are far-reaching, and will certainly lead to major upheavals in our consumption and distribution patterns.

Faced with this crisis, small businesses are often on the front line. Loss of business, supply difficulties, cash flow problems - entrepreneurs are faced with a host of obstacles.

However, the strength of a VSE lies in its ability to adapt. If the coming months are going to be difficult, agility, professionalism, organisation and creativity will make them more resilient in the face of this crisis. It is also in times of crisis that new opportunities are created.

Some businesses are hard hit, others less so, depending on their sector of activity and distribution model. Measures have been put in place by the government, and everyone should be able to benefit from them to alleviate the emergency.

In the second stage, we need to be able to question our organisation and our methods, through a global analysis. For companies that sell goods, certain actions can help to improve their business model, streamline their customer/invoicing cycle and stock management, and also exploit new opportunities. We suggest that you identify a few best practices that will maximise your chances of weathering the storm and bouncing back more quickly.

See all software Stock Management

Turn stock into your best ally

Stock management is even more sensitive in times of crisis, and is a crucial element that you can influence. Whatever the size of your company and whatever your sector of activity, don't overlook the impact of good stock management and optimisation.

Here are a few recommendations to implement quickly during this period:

▶️Analysez your existing stock: first and foremost, you need to know exactly what your stock consists of: product references and categories, quantities of each, storage location. A detailed inventory will give you a clear picture of what you have.

▶️Déterminez Inventory valuation: this second stage is essential because inventory is a capital asset. It increases your WCR (Working Capital Requirement) and directly affects your cash flow. A good analysis will help you make the right decisions.

▶️Calculez your production costs and identify high-margin or low-margin items: because the profitability of your business is critical, you need to be fully capable of identifying the products that make money. Your sales strategy will depend on it.

▶️Réduisez Dormant stock : unsold goods are a burden on your business and represent unnecessary additional costs. It is possible to develop promotional actions or even to consider very short-term destocking solutions.

▶️Révisez your product portfolio: just as you have identified unsold items, identify fast-moving items and best-sellers. This is an opportunity to reduce the breadth of your product range, simplify your offer and focus on certain products.

▶️Assurez traceability of your products : certain activities require legal tracking of their merchandise. For dangerous, perishable or medicinal products, the introduction of batch or serial numbers means you can keep track of them at all times, so you can react more quickly.

▶️Organisez and clarify your product management : your organisation during a crisis must be flawless. When you take over, your management will make all the difference.

If you haven't yet created your SKUs to ensure better tracking, then it's time to think about it! Setting up product categories can also prove useful for better analysis (e.g. accessories, clothing, organic, etc.). Have you also considered adopting barcodes in conjunction with a scanner to speed up orders and their processing? And finally, if you have a fairly large warehouse or storage area, think about creating spaces to make it easier to pick up products before they are dispatched.

Optimise and automate your sales management

More than ever when the economy picks up again, the way you handle your sales management will be crucial to getting back on track quickly and efficiently.

Reviewing your sales processes means

• Reducing the risk of errors and preserving the customer relationship,
• Improving profitability and productivity,
• Saving time and focusing on your core business,
• Accelerating cash flow.

So how do you go about it? Here are a few simple steps you can take:

▶️Faites Sort out your product catalogue: As already mentioned, review your product database, classify and analyse the best sellers, and don't be afraid to clean house! But you can go even further by creating product kits or promotional offers. You can also try to speed up the availability of your products by anticipating certain stages, which is known as delayed differentiation.

▶️Automatisez the sales chain: ditch those unmanageable spreadsheets! Optimise your operations and sales cycle by automating and centralising all your data and orders in a single system. You'll be able to turn your quotes into order forms and then invoices in the blink of an eye and without error.

▶️Restez close to existing customers: they are at the heart of your business. Keeping them up to date will help them to think of you when they're ready. To maintain the link, don't hesitate to review your customer file, updating data, addresses, emails, etc. Centralise their information, classify it and establish different commercial conditions to reward your best customers and encourage greater loyalty.

▶️Créez sales opportunities: think about the different alternatives you can put in place to boost your sales activity. Here are just a few:

• Offer consignment sales: this system allows you to display your products with a retailer who pays you only when the goods are sold. This gives your products greater visibility and reduces the risk of your customer offering your products.
• Set up marketing campaigns: add rhinestones and sequins to your products to make them more attractive and competitive. Also think about proposing commercial offers and attractive packages, for example a set with a gift or a kit with free POS to facilitate sales.
• Adopt new distribution channels: the omnichannel strategy is particularly beneficial in times of crisis because it allows you to diversify your sales channels. Consider new ways of selling: e-commerce, trade fairs, sales agents, clearance centres, boutiques, pop-ups, marketplaces, etc.
• Draw up detailed sales reports: identify the best distribution channels, sales locations, sales representatives, customers, products, etc. In short, track your key indicators and draw conclusions from them so that you can focus your efforts at the right time and in the right place.

▶️Favorisez collaboration with your teams: a motivated, well-equipped team is an essential asset for your business:

• Adopt easy-to-use tools that will help your employees become more efficient and serve your customers better.
• Train your teams in better business practices by making mobile tools available.
• Create centralised working environments for each employee, with personalised access to their data.

Reconsider your supply methods

Stock plays a critical role in the long-term future of your business. As we've explained, it ties up your cash and increases your WCR. It is therefore essential to manage your supplies to optimise your stock levels and their cost. But be careful, it's not a question of putting all your purchases on hold, as under-stocking could lead to lost sales and dissatisfied customers when you start up again.

Here are 7 recommendations for improving the supply of goods during this crisis and post-crisis period:

▶️Gérez your existing supplier orders: take stock of your current supplier orders, whether pre-orders, orders partially received or orders received but not yet settled. Work with your suppliers to modify or cancel certain orders and stagger deliveries. This is also an opportunity to negotiate the terms and conditions of your payments.

▶️Analysez your current production: for designers and manufacturers, think about reviewing your production. It may be appropriate to cancel or postpone certain planned productions, and consequently to adjust the purchase of raw materials. As far as possible, you should also try to reduce production time in order to reduce your work-in-progress.

▶️Cherchez to move towards just-in-time stock management: the aim of this method is to speed up stock rotation. This means that you need to reduce as far as possible the time that elapses between receiving products and sending them back to your customers. This reduces the cost of storing goods. Beware, however, of the additional delivery costs that this method can generate.

▶️Évitez stock-outs on your flagship and high-margin products: these products are essential to the long-term future of your business.

• Calculate your order point: often used with the just-in-time model, the order point or replenishment threshold method involves defining a stock level for each product which, once reached, triggers a replenishment order with your supplier.
• Create notifications when stocks are too low: if you use stock management software, you can set up alerts to notify you when your stock levels are low. This way, you can place a new order with your suppliers.

▶️Optez for dropshipping: Products are shipped directly from your suppliers to your customers. This means you don't have to store the goods you sell.

▶️Évaluez your supplier base: in times of crisis, too much dependence on a few suppliers can be risky if some are no longer able to deliver or are forced to close down. It can also be a good idea to find local distributors. In this way, you can avoid delivery problems and support businesses in your region. Local solidarity is often much appreciated in difficult times and can become a competitive advantage. It's also vital to make sure that your flagship, high-margin products are delivered.

▶️Optimisez your purchases: in the end, we recommend that you try to minimise the total annual cost of your goods in stock. You therefore need to define the optimum point between order acquisition costs and stock holding costs. To do this, you can use the EOQ (Economic Order Quantity) calculation.

See all software Stock Management

Act now to bounce back!

Don't delay in taking action to ensure your survival during the crisis and to facilitate the post-crisis recovery.

More than ever, cash flow is the lifeblood of your business, and that's why monitoring your working capital requirements is vital. Make sure you don't tie up too many resources in your stocks, which is the main threat to working capital for trading companies. Stock and order management software will enable you to manage and control your stock efficiently and without error.

Managing trade receivables and payables is also essential for optimising working capital. Choose your suppliers carefully and organise your purchases. On the customer side, automating your order processing and collection operations means you can improve your "Order to Cash" process and get paid faster. Crucial for healthy cash flow!

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