RMG 200 Lecture : Buying Strategies
17 May 2011
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Document Summary
Breadth of assortment must meet store target customer. Inventory depth must r reflect anticipated rates of sales. Manufacturer (national) brands made by vendor sold by many retailers. Licensed brand developed by licensee and sold to manufacturer or retailer (barbie) Issues in international sourcing of private label merch: country of origin effects, costs: foreign currency fluctuations, tariffs (allows canadian industries to compete), supply chain efficiency and inventory, carrying cost, transportation cost, quality control. Domestic: higher merch cost, shorter lead times, human rights controlled, preferences. International: lower cost, longer lead times, more control problems. Regulations affecting the costs of importing goods: world trade organization, nafta, free. Connecting with vendors: internet (product directories, reverse auctions), market centres, Chargeback used by retailers when they deduct money from the amount they owe a vendor because either merch isn"t selling or vendor made a mistake. Slotting allowances fees paid by vendor for space in a retail store.
