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132 Cards in this Set
- Front
- Back
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Sourcing
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the process of determining how and where goods will be procured
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Manufacturers
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off goods for sale that they have produced
referred to as vendors, suppliers, or resources |
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Middlemen
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agents who process goods in one way or another from the manufacturer to the retail distributor
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Drop Shippers
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take title to merchandise, but do not take actual possession of the goods
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Jobbers
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sell closeouts and job lots
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Brokers
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middlemen who help negotiate business between the buyer and seller
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Contractor
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an independent producer who performs aspects of manufacturing, such as sewing, cutting, and finishing
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Exclusive Contractor
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a supplier that only works for a particular company
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Lead Time
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refers to the merchandise at the retail establishment
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Computer-aided Design (CAD)
and Computer-aided Manufacturing (CAM) |
enabled manufacturers to significantly speed up the production process from initial design to grading and marker making
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Agile Manufacturing
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incorporating modular production rather than the traditional piece goods line method
allows for special orders at the last minute without disruption |
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Mass Customization
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allows for individualized sizing to be incorporated into regular mass production
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Quick Response (QR)
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shortens the pipeline of getting a product from its conception to the retail consumer by capitalizing on EDI
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Automatic Replenishment
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describes a quick response in which the retail sales data gathered by computer automatically arranges for stock to be replaced when stock levels are low
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Just-In-Time (JIT)
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concept used to lessen costly inventories
online communications and partnerships with suppliers enable fabric and other supplies to be delivered to the manufacturing site "just-in-time" for production |
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Domestic Sourcing
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the purchasing of merchandise within the borders of the United States
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International Sourcing
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the process of buying goods offshore
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Offshore
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from countries other than the Untied States
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Imports
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goods and services that are purchased from other countries
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Quota
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the limit to the number of units of specified merchandise permitted to be brought into a country for consumption during a specific period of time
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Free Trade
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no barriers to trade
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Safeguards
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additional quotas imposed after 2005
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Visa
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document form the exporting country guaranteeing country of origin and is a way for the exporting country to monitor the amount of its exports to the United States
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Tariff (duty)
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a special tax, paid to the government, placed on imported merchandise that adds to the cost of goods
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Specific Tariff
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a rate of duty that is based on the set amount per each unit imported
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Ad Valorem
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a rate of duty that is based on a percentage of dutiable value
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U.S. Harmonized Tariff Schedule
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itemizes all products imported from other countries that are subject to tariff
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Customs and border Protection
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oversees imports of the United States involving quota safeguards, tariffs, and counterfeits
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Embargo
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limit the items imported into a country
legal bans on trade with certain countries may prevent a company from obtaining exactly what they need or want |
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Resident Buying Office (RBO)
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an organization located in a given fashion market that serves as a retailer's market representative for a procurement of merchandise
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Store-owned Buying Offices/
Independent Buying Offices |
owned and operated separately from its client retailers
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Centralized Buying
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focusing all the purchasing activities in one place, where it is initiated and overseen by one individual or group
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Decentralized Buying
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centers the purchasing activities at the local or retail-outlet level
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Market
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the actual physical place where the retail buyer and seller come together to purchase or sell goods and services
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Merchandise marts
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trade centers built to house manufacturers' representatives and provide a center for retailers and manufacturers to come together to do business
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Trade Shows
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a means for a buyer and seller to meet and do business
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International Markets
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located all over the world
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Domestic markets
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those in the continental United States
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Regional markets
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may provide a mart, serve the U.S. retailer as a geographical convenience
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Market calendars
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publicize the dates (market weeks) and locations of trade shows and markets that are available
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Buying
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the purchasing of goods and/or services for the retailer to sell to the ultimate consumer
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Merchandising
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the buying and selling of goods and/or services for the purpose of making a profit
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Buyer
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the individual given formal authority to undertake the purchasing for a retailer
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Purchasing
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obtaining the materials to make the end product
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Product Manager
Purchasing Agent Merchandiser Sourcing Agent |
the individual given buying authority at the manufacturing level
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Point-Of-Sale (POS)
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the major technological control that retailers use today to track inventory and sales by the use of computer software programs
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Universal Product Coding (UPC)
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12 digit number used to track and identify products to the lowest level of merchandise detail
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Electronic Data Interchange (EDI)
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a communications system that electronically transfers information from one point to another via computers
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Optical Character Recognition (OCR)
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utilizes scanning of paperwork
often used in place of manual data processing to speed up document processing and increase accuracy |
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Planners and Allocators
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work with buyers and their assistants to ensure that the right merchandsie gets to the right place at the right time
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Gross Margin
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the difference between the net sales and cost of goods sold and usually is an indicator of profit
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Stock keeping Units (SKUs)
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smallest unit level of merchandise and includes style, color, size, and any other information that needs to be tracked
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Dollar Plans
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forecast the merchandie activities for a department or store for a specific period of time
regarded as the money budget preparation of retail dollars to meet sales plans |
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Merchandise Planning
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broad term that describes those retailing activities that are based in planning
directly involves the five "rights" of merchandising |
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Forcasting
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predicting the styles and trends to purchase for the customer
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Environmental Factors
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come from both internal and external sperspective
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External Environmental Factors
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aspects of technology, the economy, society, and culture, along with political and legal issues that impack the business and the customer being considered
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Internal Environmental Factors
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information from store records to the store's particular culture and vendors
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Long-range Planning
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looking toward the future for a business and projects goals of five or more years
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Short-range Planning
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looking at the most immediate concerns and setting goals of the business to achieve them
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Top-down Planning
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involves goal setting at the highest level of the organizational structure and management, then filtering the goals down to the other levels
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Bottom-up Planning
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involves goal setting at the lowest levels of management--and even sometimes non-management--then filtering plans up the organizational structure to the highest management level
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Unit Plans
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involves the actual physical units and refers most often to the assortment planning and qualitative aspects on this plan
involves decisions about what types of merchandise should be bought and stocked by a retailer down to the number of pieces in inventory |
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Unit Planning
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the physical units and most often to the assortment plannings and qualitative aspects
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Six-month Plans
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a unit and dollar merchandise plan covering six-month time frames within a calendar year
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Sales Planning
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the estimation of the sales that a retailer will make over a period of time
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Basic Stock Method
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relies on having a minimum level of stock no matter what, as a reserve stock level and also enough stock to meet projected sales each month
average stock for the season minus the average monthly sales |
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Inventory (stock) Planning
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accomplished after sales planning, and entails the determination of the stock levels necessary to meet the sales plan
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Percentage Variation Method
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determines stock for a high turnover rate (six or more per year)
allows for stock fluctuation and is based on the premise that the variation of monthly stock form average stock should be half as much as the percentage variation in monthly sales from average sales |
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Stock-to-sales Ratio Method
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arrives at a planned stock level that is based on what should be on hand at any given time, rather than on an average stock basis
may be arrived by multiplying the planned sales for the moth by the BOM stock-to-sales ratio |
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Wee's Supply Method
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used when calculating a needed stock level by week
planned stock is equal to the average stock in a week's supply multiplied by the planned weekly sales |
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Turnover (stock turn)
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describes how many times stock is sold and replaced within a period of time
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Assortment of stock
(Merchandise Mix) |
what particular types of merchandise will be purchased
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Assortment Planning
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the plan for mixture of merchandise found in a store
regards not only what the vendors to carry, but ht number of units and stock levels, price ranges, styles, sizes, colors, fabrics, and even the level of fashion |
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Basic Stock Planning
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involves staple merchandise
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Model Stock Planning
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sets a determination of merchandise levels accourding to factors important to the buyer
is for fashion and/or seasonal merchandise within a particular merchandise category |
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Depth
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the number of units within a product line, style, or brand
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Breadth
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the number of different product lines, styles, or brands that are carried in a retailing establishment
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Broad
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lots of styles
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Narrow
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few styles
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Deep
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many colors and sizes
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Shallow
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few sizes and colors
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reductions
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lowering or marking down the retail price of merchandise
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Markup Cancellations
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adust the amount of markup that was put on an item originally, therby lowering the price
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Discounts
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lower the retail price as a concession to employees or other special customers
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markup (or markon)
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the difference between the manufacturer's cost and the retail price offered to the customer
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Keystone Markup
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an amount that equals the cost of merchandise, or a 50 percent retail markup
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Short Markup
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markup smaller than a keystone markup
creates a retail price that is less tan double the cost of the goods to the merchant |
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Expenses
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the costs expended by a business to generate sales
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Pricing
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the actual setting of the retail price of products
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Pricing Strategy
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the determination of the type of pricing policy a buyer or retailer will use along with the practices the buyer or retailer will employ
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Planned Purchases
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the difference between what is needed and what is on hand
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Odd Priced
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ending with an odd number or a round number
often reflect sale merchandise |
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Even Priced
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ending with numbers that can be divided evenly
usually indicate non-sale prices |
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Loss Leader
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priced at or below cost to attract customers
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Open-to-buy (OTB)
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an adjustment to the planned purchases that takes into account what is already on order
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Controls
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the methods employed to help a retailer track the business to see how it is doing and how effective the merchandising strategies are
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Standards
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means of measuring performance through accepted guidelines that help to monitor performance
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Periodic Inventory
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method of stock control in which the retailer physically counts merchandise at designated time periods
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Perpetual Inventories
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Stock control methods that provide a continuous record of the movement of incoming and outgoing merchandise with is easily down today through POS systems
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Vendor Matrix
(Key Resource List) |
incorporates the company-approved key vendors from which a buyer is recommended and/or required to purchase
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Profit and Loss Statement
(Income Statement) |
the evaluation of a company's profitability
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Partnership
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a working relationship that is formed to achieve a mutually beneficial goal
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Returns To Vendor (RTV)
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occurs when a retailer returns goods to a manufacturer for any reason, for instance not liking merchandise or inherent problems (poor quality) in the product
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Data Mining
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electronically tracking product, sales, and customer information to use in a business
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Adjustments
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reductions in the cost of goods to the retailer because of problems with the merchandise or because the items were returned
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Special Orders
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those that are placed with a vendor generally for a specifc customer
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Reorders
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and order that has been placed previously
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Minimum Orders
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a specific amount of merchandise that must be placed
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Discounts and Allowances
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price concessions given by the vendor to the retailer in return for certain actions that the retail takes
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Negotiations
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can result in a settlement and mutual agreement between two or more parties on any matter
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Independent Rep
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may be under contract to a specific company as its sales agent buy may also represent other firms
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Company Reps
(Corporate Reps) |
persons who work exclusively for a supplier and are company employees
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Purchase Order (PO)
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legal contract that binds the buyer and seller
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Terms Of Sale
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conditions in a purchase agreement between retailer and vendor that include discounts, delivery, and transportation costs
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Dating
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a predetermined amount of time during which discounts can be taken and the invoice is to be paid
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Pubic Relations
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responsible for creating public impressions about the company
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Special Events
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classified as paid/personal communication and can include demonstrations, trunk shows, fashion shows, celebrity appearances, or other events which are used to gain the interest of consumers
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Trunk Shows
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presentations of apparel lines by designers or vendors to store personnel or to customers
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Fashion Seminars
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presentation and sicussion of new fashions
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Product Ads
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promote immediate consumer action--that is the ad urges the consumer to come into the store and buy that specific product
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Institutional Ads
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concerned with building a company's reputation or image rater than selling a product
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Trade Advertising
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advertising by manufacturers to retailers
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National Advertising
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refers to manufacturers advertising directly to consumers
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Retail Advertising
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advertising by retailers directed at consumers
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Cooperative (co-op) Advertising
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involves retailers and suppliers sharing the costs of advertising
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Direct Marketing
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utilized today by retailers and manufacturers
refers to the various ways a company can communicate directly with potential customers |
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Direct Mail
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used by both retailers and manufacturers to send flyers, catalogs, or other literature to target customers
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Video Walls
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many television screens displaying the same visual and/or large sceen projections
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Remote Displays
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used away from a store's location
freestanding units can target tourists because they are often placed in hotels, while a department sore that is located at one end of the mall might also use a remote display at the other end to alert customers of its presence |
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Primary Trading Areas
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the area in which it can serve its customers in terms of convenience better than its competitors
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Secondary Trading Areas
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yield customers despite a competitor's location advantage
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