|
Transactions, in and out, are the weak spot.
Inbound transactions drive supplier payments /
refunds and stock on hand. Out drives
invoicing, cash, receipts and stock. All are
incredibly vulnerable to error &/or getting
'out-of-sync' (e.g. 'I'll send you the receipt
when I get home' Now the goods and the cash
are in sync, but the bookkeeping is out)
- Have a good process and stick with it.
- Getting signatures doesn't increase
accuracy, good processes do.
Signatures sometimes help when
backtracking, although maybe the
missing transaction was the one not
signed for! Thieves don't sign.
- Realise that it will go wrong (stock
moves, errors stay) and build in checks
and balances which
- Put it right before you hurt a
customer or yourself
- Unravel and fix causes, not effects
- Theft and forgetfulness are endemic.
Tough, you shouldn't have
volunteered!
- Play hardball. They are not CD's, they
are money. If you wouldn't hand
someone £1000 on a handshake, don't
hand them 100CD's.
- You will get returns. Plan for them
now.
| |
Know what and where the stock is. In
computerised systems, stock is a calculated
consequence (start stock + deliveries -
shipments = stock now) so is classically
subject to errors anyplace else.
Hold stock at cost price. Write it down (in value -
don't scrap it) progressively if it becomes clear it
won't all sell. Don't 'bottle' at this - it's much
harder to write lots down late than little bits early.
Don't worry if you write something down too far
and it then sells. You made a paper profit,
cancelling the paper loss you took earlier. If you do
finally have to scrap stuff - destroy it. Council tips
are full of entrepreneurs.
Keep the re-ordering very simple. If you set the
ROP (re-order point) to 'when I have 100CD's of a
title left', then mark the 10th last box (if packed in
10's) in some way. When you open or issue that
box, reorder.
Order what you need. Don't get too drawn to
volume discounts (100 cost £5 each but 500 cost £4
each) Cheap items that don't sell are bloody
expensive.
After the initial pressing (which inevitably involves
a 'blind forecast' of what might sell) only reforecast
when you are sure sales have changed
substantially. There's more damage done by reforecasting
than most anything I deal with. The
reforecast might alter the ROP (when you reorder),
the ROQ (Reorder Quantity - the amount you
order), both or neither.
ROP and ROQ (colloquially 'rop & rock') are your
steering wheel and accelerator.
ROP should be 'the amount I might sell before the
ROQ arrives, plus a safety margin'. |
