Relevent Knowledge There are two types of retail goods-consumsr goods arnd industrial gs
Consumer
Types of Consumer Goods
a. Convenience Goods
Goods
ypes of God
The consumer goods can be classified under following hsads:
Goods which are easily available to consumer, without any ertra effort areconvenience goods. These goods are consurned regularly and purchased frequently.For Example, Fast Moving Consurmer Goods (FMCG) uch as food, ontetionaries,milk, etc.
IndustrialGoods
The goods are mostly sold by wholesalers to make them available to the conoumers ingo0d volume. Further, convenience goods can be sub-categorized into:
. Staple Convenience Consurmer Goods
• Impulse Convenience Consurmer Goods
Staple Convenience Consumer Goods: Goods which come under the basic demands ofhuman beings are called staple convenience goods. For exarmple, milk, bread, sugar,etc.
b. Shopping Consumer Goods
Impulse Convenience Consumer Goods: Goodswhich are brought without any prior planning orwhich are brought impulsively are called impulseConvenience goods. For example, potato wafers,candies, ice creams, cold drinks, etc.
These are goods which consumers purchase andConsume on a less frequent schedule compared toconvenience goods. In shopping Consumer goods,Consumer do lot of selection and comparison basedon various pararmeters such as COst, brand, style. comfort ete, before buying an item. They are costlier than convenience goods and aredurable in nature. Goods like clothing items, televisions, radio, foot wears, home
furnishing, jewelleries etc. come under the category of shopping goods.
C. Specialty Consumer Goods
Goods which are very unique, unusual, andluxurious in nature are called specialty goods.Sbecialty goods are mostly purchased by upper-classof society as they are expensive in nature.Examples of Specialty Products are antiques, highand luxury automobiles, wedding dresses, etC.
Non Sought Consumer Goods: Goods or Services likeinsurance which are available in the market butcUstomer is not really interested in buying them arecalled non-sought goods.
Apart from the above categories, retail goods are also classified into durable, semÃ-
durable and non-durable goods.
a) Durable Consumer Goods
Goods which have long life span and usage period are called durable goods.
For example, Furniture, Kitchenware, Consumer Electronics, etc.
b)
Non Durable Consumer Goods
Semi-Durable Consumer Goods
Goods which have limited life span or usage period arecalled semi-durable goods. For example, Clothes, FootWears, Artificial Jewellery, Home Furnishing, etc.
Goods have a very short lite span and are perishable innature are called non-durable goods. For example.Milk, Bread, etc. • Merchandise quality equals, or exceeds, the buyer's expectations
Problems and discrepancies should be documented and reported to the proper partyresponsible. Cartons missing or damaged in transit become the respornsibility of thefreight carrier or transport company. Vendors and manufacturers should b6 notifiedit
the order is of poor quality, incorrect quantities, missing or wrong merchandisesure to obtain a reso lution to any problems before continuing to the next processreceiving freight.
Procedure for Goods Receiving and Storage
Supply chain activity has changed significantly over the last 10 years, with themajority of shops now carrying less stock and relying heavily on daily deliveries ofgoods. Receiving and storing goods is a vital role within retail, especially where largequantities of food are handled on a daily basis and must be stored and rotatedcorrectly.
People working in this area of retail need effective numeracy skills in order to dealwith codes, dates, temperatures and pricing goods. They also need to understand theconsequences of inaccurate record keeping and incorrect storage of goods. Thefollowing aspects of receiving goods and materials into storage:
Checking codes and delivery sheets
Understanding and recording times and dates accurately
Understanding temperature
Reading labels
Understanding stock rotationPricing goods for sale.
Receiving and Dispatching Stock
Receiving goods from suppliers is a fundamental part of retailing. Due to the potentialfinancial losses that can result, it is critical that staff follow the related procedures toensure that this is done effectively. While different procedures apply to differentmerchandise, the following are typical receiving and dispatch procedures.
Receiving Goods
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1. Goods are for your store
2. Goods have been ordered
3. Goods received agree with order and invoice quantity, description and quality.4. Goods are not signed for before they are thoroughly checked
5. If invoice is not received with goods, there must be provision to process it inthe correct manner when it is received
6. Goods are correctly ticketed and immediately placed on the selling floor7. Pre-sold goods allocated for earliest possible delivery
8. Damaged or incorrect goods are rejected and arrangements made torimmediate repair or replacement - delivery slip marked accordingly
a Stock held in reserve promptly ticketed after inspection and carefully stored10.Reserves are organised so that oldest items will be drawn first for the sellingfloor or for delivery
11.Daily Goods Received record kept and processed with all relevart inieS
and/or delivery dockets
12.Receiving area kept clear at all times and rigid security adhered to
Dispatching Goods
1. Dispatch person alert to false or incorrect paperwork
2. Ensure customers are notified of impending delivery - address checked and aYmoney collected carefully documented so driver cannot oVveriook it
3. Double check goods to be delivered are correct in quantity, description aoquality
4. Damaged goods not dispatched unless agreement from customer
5. Regularly check loaded vehicles to ensure packing is satisfactory and only treitems to be delivered are in the vehicle
6. Ensure you are satisfied with the appearance of the vehicle and the drrver-they create a lasting impression
7. Maintain daily goods delivered records - ensure drivers sign for goods in goodorder and condition
8. All paperwork processed promptly
It is the manager's responsibility to ensure that everyone adheres to the receiving anddispatching procedures. The process involved in receiving goods will vary from storeto store. The responsibilities of the manager and staff when receiving goods will als0vary.
Manager's Flow Chart for Receiving Goods
Receives copies of orders sent
Checks that copies match past orders
Receives copies of signed invoices of goods
Check that invoices correspond with order
Signs invoices for accounts payable | How to Properly Receive Merchandise |
| When the products arrive, they may be in plastic containers. Gardboarc cartaswOoden crates or other packaging. Some merchandise mav be on hangers. 0tharmsmay be on pallets. Keep in mind that a receiving area is designed to recewarehouse merchandise. Each step of processino freight shoulo be done Uy anefficiently. |
| Begin receiving orders by: |
| • Confirming the number of cartons match the quantity on the bil ot lading |
| •Examining the containers for signs of damage, including leaks, taars 3r brDtenseals |
| . Verify the weight, if necessary , matches the amount ohargad |
| Bill of Lading |
| A document used as evidence that a transDort companv or carier reevad gos roma shipper. This contract indicates the shipping method and terms far gatting themerchandise to its final destination. |
| It is the retailer's responsibility to read and agree with the bill of lading bearesigning it. Attach this document to the packing slip, invoice cOy ana ar purohaseorder as proof of receipt of merchandise. |
| we mUst insoect tha artos ofExamples: Before the truck driver leaves,merchandise received and compare the delivery with the information on the bil oflading, which we must sign and proof of receipt. |
| Any discrepancies should be noted on the freight bill before signing. The retailar isresponsible for the entire shipment, as-is, once the receipt for goods is Signed |
| Large shipments should be sorted as the cartons are unibadad. Having ikemerchandise grouped together will make the remaining processes of recelingmerchandise much easier. |
| Checking In Freight |
| Once the shipment has been accepted, the next step of processing freight is ohakinin the merchandise. Some vendors may mail an invoice soparataly from the shiiomantA packing list is often included with the goOds. The two dooumants may look simiarbut wholesale product prices and shipping cOsts are genarally exOlUda trom pakinglists. Many retailers opt to continue the cheCking in prDcOss onty aftar the invoice hasarrived. |
| Start the process of checking freight by comparing the vendors invoice apainst thestore's purchase order to insure: |
| • Prices and additional terms of sale are As agreed upon |
| Quantities received by the retailer match purchase order |
| • Product styles, colors, sizes received are identical to purchase order |
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