Manage Massage Therapy Product Sourcing Challenges in 3 Easy Steps
For several months, you have been hearing about additional supply times. We therefore thought it important to equip you with a few tips to allow you to be more proactive if necessary. Many causes are mentioned such as the reduction of suppliers, labor shortages or even delivery times linked to seaports.
Establishing a simple strategy by identifying a breakeven point higher than 0 is an example of proactive behavior. For some, an extra product or two in stock will be enough and ordering will only be necessary when they run out. However, this method can sometimes create shortage problems. To avoid this, it is preferable to raise the breakeven point so as to plan the order when you still have a comfortable reserve of several products. This avoids finding yourself without a product between the time of ordering and the time of receipt of new products.
Step 1 to 3 to evaluate a new breakeven point for the next product order:
- Take a simple inventory of the number of products in each category that you own.
- Estimate approximately the number of products sold during a month for its use as a therapist and for resale.
- Decide on the new upward breakeven point in order to avoid the risk of shortage.
Finally, if we repeat the previous three steps with a concrete example, we will see more clearly how it works.
Let's take the example of a balm that you use frequently. If you have 18 units in stock, you can conclude that you have approximately a three-month supply if you use two per month for your treatments and sell four per month. You can set your new breakeven point at nine units for example. So if you have an increase in sales or usage for any reason, you will also have a leeway equivalent to a month and a half. The order placed could then be for 12 products for example depending on the peak periods of your customer base. This is a good method to take advantage of the quantity discount and not get caught by surprise.
Bonuses: On a storage shelf, several methods are possible to add a visual marker. The visual marker can be as simple as a red sticker next to a location on a tablet. You'll also know that when you pick up a product, there are only new ones left and it's time to order. It's a visual way to manage neutral without adding work.