Chapter 15 Flashcards
want book (want slip)
A record used by retail employees to note customer requests for products not currently in stock
Chargebacks
A retailer’s financial penalty on suppliers for failing to meet terms, such as late deliveries or damaged goods
Ex: A department store issues a chargeback to a clothing supplier for shipping defective items.
Opportunistic Buying
Retailers purchase merchandise at a discount due to special circumstances like overstock or bankruptcy sales.
Ex: A discount store buys designer handbags at 50% off from a brand going out of business.
Slotting Allowances
Fees paid by manufacturers to retailers for shelf space to introduce a new product.
Ex A cereal brand pays a supermarket to place its new organic cereal on eye-level shelves.
Consignment Purchase
A retailer stocks merchandise without paying for it upfront, only paying the supplier for sold items.
Ex: A boutique sells handmade jewelry from a local artist on consignment, paying only for sold pieces.
Memorandum Purchase
The retailer pays for goods only if they are sold within a specified period; unsold goods are returned.
Example: A bookstore agrees to return unsold copies of a new novel to the publisher after three months.
RFID (Radio Frequency Identification)
A technology using radio waves to track inventory and shipments via embedded chips.
Example: A clothing store uses RFID tags to scan and locate missing stock instantly.
Logistics
Managing the movement of goods from suppliers to retailers/customers.
Ex: A retailer optimizes delivery routes to speed up store restocking.
Supply Chain
The entire network involved in producing and distributing products.
Ex: A sneaker brand’s supply chain includes factories, warehouses, and stores.
CPFR (Collaborative Planning, Forecasting, and Replenishment)
Retailers and suppliers share data to optimize inventory management.
Ex: A grocery store shares sales data with a beverage company to improve restocking.
Quick Response (QR) Inventory Planning
A system that quickly replenishes inventory by linking sales data to suppliers.
Ex: A fashion retailer restocks popular dresses immediately when stock runs low.
Floor-Ready Merchandise
Products arrive pre-tagged and display-ready for retail stores.
A shoe brand ships sneakers in labeled boxes to reduce store prep time.
Efficient Consumer Response (ECR)
A supply chain strategy aimed at reducing inefficiencies and improving availability.
Ex: A supermarket uses ECR to keep fresh produce stocked efficiently.
Direct Store Delivery (DSD)
Suppliers deliver products directly to stores, bypassing warehouses.
A soda brand delivers cases of drinks directly to convenience stores.
Inventory Management
Tracking and controlling stock levels to prevent overstocking or shortages.
Vendor-Managed Inventory (VMI)
Suppliers track and restock inventory for the retailer using real-time sales data.
Ex: A snack brand automatically ships restocks to a grocery store.
Inventory Shrinkage
Loss of inventory due to theft, damage, or errors.
Electronic Article Surveillance (EAS)
Security system using sensors and alarms to prevent theft.
Reverse Logistics
The process of handling returns, recycling, or disposing of products after purchase.
Ex: An electronics store refurbishes returned laptops for resale.
