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University of Notre Dame *

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MANAGERIAL

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Business

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Nov 24, 2024

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Proposal – September 23, 2022 To: Owner From: XYZ RE: A suggestion to get and use new inventory-tracking software during the following 30 days. Purpose Our lack of an accurate, user-friendly inventory management system is a major issue at our locations, and we provide a cost-effective solution. We ask for your permission to purchase and install the Inventech software and the required hardware to make the system function within the upcoming month. A modern inventory system will benefit our business by better serving consumers and recouping income that was lost due to antiquated inventory methods. Problem Our inventory buying processes have not adequately reflected client demand since we expanded last year from merely our Fostoria store to two more sites. The salesforce we had last year at our Fostoria shop is now split over all three Challenger locations, whereas up until now, we have depended on our workers to assess our ordering needs. This is due to our recent expansion. 15 part-time individuals, most of whom are new to the retail athletic goods industry, were employed to staff these new sites. Table 1 below compares our present staffing condition to the previous year. Table 1 Last year This year Fostoria (6 full-time, 3 part-time) Fostoria (2 full-time, 6 part-time) Addison (2 full-time, 6 part-time) Turnersville (2 full-time, 6 part-time) We haven't been able to predict our inventory demands as precisely as before our growth since we had to divide our skilled full-time workforce among three locations. Assuming that consumers at the two additional stores would make purchases that mirrored those made at the Fostoria facility made it even more difficult to manage and obtain sufficient inventory.

Instead, our data demonstrate that client expectations have varied significantly, and sometimes by an alarmingly huge amount, from shop to store. We failed to satisfy consumer demand throughout the crucial Fall and Christmas shopping seasons because we stocked the Addison and Turnersville shops with the same inventory as Fostoria. Additionally, even when staff members directed consumers to one of our other two locations, we frequently lost business to rivals because just 35% of our same-store recommendations ended up purchasing from us. Additionally, there was a rise in unfavorable Facebook postings and tweets. According to research, more than half of customers won't give a new company "a second opportunity to establish a first impression" if they have a bad shopping experience with them the first time. However, stocking too little or too many goods is equally unprofitable. When there is too much inventory, it takes up expensive warehouse and showroom space, and when there is not enough inventory, customers may go somewhere else. However, the outdated and inefficient methods through which we stock shelves and buy goods are costing us money and business. The losses we have sustained as a result of overstocking in all three locations are broken out in Table 2 below, which is based on a thorough internal assessment. Our lack of a thorough inventory management system, along with the launch of two additional locations, is the cause of such losses. In addition to harming the Challenger brand's reputation in the marketplace, this will result in bigger losses for the upcoming fiscal year. Our marketing strategy of becoming a prominent athletic goods retailer that offers clients a one-stop shopping experience is undermined by deep discounts. It also imperils our long-term

objective of effectively growing our client base with the opening of the two new locations in Addison and Turnersville. Solution Challenger will be able to recover a big portion of the money we have lost by updating our inventory practices and significantly decreasing discounting and holding unsold goods if they buy and implement a robust inventory management system. According to pertinent research of small firms by Lapka and Harper companies were able to recover roughly 33% of revenue losses caused by inventory problems in the first year after using a monitoring system. Installing New Inventory Tracking Software: A Possibility We looked at several tracking software solutions, and after careful consideration, we think that Inventech Inventory Tracking (www.inventech.com/inventory) is the best and most affordable solution for Challenger's inventory issues. With the aid of Inventech, we will be able to efficiently manage, document, and calculate our inventory and be in a better position to anticipate orders for the 2016 fiscal year. Conclusion The Inventech software is essential, doable, and affordable to buy. The business may reasonably anticipate that implementing our plan, it will improve sales by at least $35,136 annually and boost customer satisfaction and foot traffic at all three outlets. At your convenience, we will be pleased to go through this proposal with you. Please feel free to ask any questions. I'm grateful.

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