When I was buying clothing at Nordstrom, we used to have to figure out the right level of inventory for each product by size. So let’s take a men’s V-neck undershirt, size large. If on average, you sell 42 units a week and they are resupplied once a week what is the right inventory level? (Before you answer it’s a trick question).
Turns out that the rate of sale is important but only half the equation, the standard deviation in your rate of sale is equally important. For those of you who are really into math we can discuss the various methods of calculating a standard deviation. The idea here is the that there is volatility and efficiencies that are part of creating an ideal solution. You have to know that some weeks you’ll sell 42 units, some weeks 62 and some weeks 30. If you price your product right, margin minus the cost of inventory.
In a simplified way, the right answer for the right amount of inventory is the average rate of sale plus one standard deviation.
If you’re still reading this DOB then great, let me explain why you should care… We are hiring!!! We have a bow wave of work rolling through the company and we’ve been working hard on make sure we hire the right number of people. The reason I bring this up is that we need your help finding great people for Tahzoo. Referrals are the best candidates for our company, if you think they are “Smart and Happy” then half the interview process is completed. Please be on the lookout for a series of job postings over the next couple of weeks.
I have been emphasizing the need to hire and promote from within Tahzoo. If you see a posting that you’re a good fit for, please through your hat in the ring. I’d like to see our company and our culture be one that is fostered from within.
Tahzoo is doing great, we are blessed with so much opportunity within our accounts in Europe, UK and the US… I can feel the momentum!
More than ever we need to expand the ambition of our ideas, the breadth of our service offerings, the geographies we are targeting and the number of great people we work with everyday.