Featuring Josh Bartel and Drew Roth
Josh Bartel and Drew Roth tackle the crucial question: which items should distributors and wholesalers carry? They explore the pros and cons of common inventory strategies including stocking, just-in-time ordering, dropshipping, and removing items from your catalog entirely.
Drew emphasizes the need to analyze factors beyond gross margin when determining true item profitability. Minimum order quantities, vendor performance, shipping costs, and even customer order composition can significantly impact an item’s financial viability.
Discover how one client achieved impressive results by embracing a “SKU diet.” By strategically reducing their product catalog by 40% based on Hydrian’s data-driven analysis, they unlocked revenue growth and increased overall profitability. This episode offers valuable insights and advice for anyone interested in optimizing their inventory.
Josh Bartel and Drew Roth tackle the crucial question: which items should distributors and wholesalers carry? They explore the pros and cons of common inventory strategies including stocking, just-in-time ordering, dropshipping, and removing items from your catalog entirely.
Drew emphasizes the need to analyze factors beyond gross margin when determining true item profitability. Minimum order quantities, vendor performance, shipping costs, and even customer order composition can significantly impact an item’s financial viability.
Discover how one client achieved impressive results by embracing a “SKU diet.” By strategically reducing their product catalog by 40% based on Hydrian’s data-driven analysis, they unlocked revenue growth and increased overall profitability. This episode offers valuable insights and advice for anyone interested in optimizing their inventory.
Distributors and wholesalers often feel pressure to offer vast product catalogs. However, carrying too many SKUs can negatively impact profitability and customer experience. Josh and Drew advocate for a “SKU diet” – strategically reducing your catalog by eliminating underperforming or unprofitable items. This simplifies operations, reduces inventory costs, and can even lead to sales growth by improving customer focus.
Don’t be seduced by a product’s seemingly attractive gross profit margin. Drew emphasizes the importance of considering all costs associated with an item, including inbound freight, storage, outbound shipping, and potential obsolescence. By calculating the true net profitability, businesses can make more informed stocking decisions.
Dropshipping can be an attractive alternative to stocking inventory, but vendor reliability is paramount. Drew and Josh advise carefully evaluating potential dropship partners on factors like shipping speed, packaging quality, and inventory accuracy. Inconsistent vendor performance can damage customer relationships and negatively impact your brand.
Making sound inventory decisions requires more than intuition. Josh highlights the power of data analysis in identifying underperforming SKUs, optimizing inventory levels, and ultimately improving profitability. By leveraging tools and insights, businesses can move away from gut feelings and towards objective, data-supported inventory strategies.
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