Understanding Prepacks, Case Packs, and Product Bundles in Inventory Management
In this guide, we will define and differentiate between three key concepts in inventory management: Prepacks, Case Packs, and Product Bundles. Understanding these terms is essential for efficient inventory handling and can help in optimizing the stocking and sales process. Let's unpack (pun intended).
Prepack
Definition | In inventory management, "Prepack" means a set of products grouped together before they are sent to the store. This will be a set of SKUs (or sizes) within the same Style and Substyle. Prepacks make it easier for stores to refill inventory quickly and match what customers are likely to buy, helping them keep a good balance of items available. They are particularly useful in apparel and footwear retail but apply to various sectors.
Examples:
- Clothing Retail: A prepack could include an assortment of a single shirt style in different sizes — two small, three medium, four large, and one extra-large — sent to the store ready for display and sale.
- Footwear Store: A prepack for shoes might consist of a popular model in a mix of sizes — for example, one pair each of sizes 6, 7, two pairs of size 8, two pairs of size 9, and one pair each of sizes 10 and 11.
Case Pack
Definition | In inventory management, "Case Pack" refers to a specific number of identical products grouped together in one case for shipping and handling. It is a standardized unit that helps streamline the stocking, distribution, and sale of products. Case packs simplify order processing and inventory management by maintaining a consistent quantity of products in each case. This method is common in many industries, from food and beverage to consumer electronics.
Examples:
- Grocery Store: A case pack of canned tomatoes might contain 24 identical cans, each containing 400g of tomatoes, all packed in one case for shipment and stocking.
- Electronics Retailer: A case pack for a specific model of batteries could include 48 identical battery packs, all in one box, to be distributed to different stores or directly stocked on shelves.
Product Bundle
Definition | In inventory management, a "Product Bundle" refers to a combination of different items sold together as a single package for a special price. Unlike prepacks or case packs, product bundles are not about how items are shipped or stocked but how they are marketed and sold. Bundling products can provide value to both the retailer and the customer, offering a discounted price for purchasing multiple items together. This approach can increase sales and allow customers to purchase a set of products that complement each other.
Examples:
- Beauty Products: A product bundle could include a shampoo, conditioner, and hair serum set sold together at a reduced price compared to buying each item separately.
- Home Goods Store: A bundle consisting of a matching sheet set, duvet cover, and pillowcases offered at a special price, providing customers a complete bedding solution less than the total cost of individual items.
How They Are Different
- Prepacks focus on the logistical aspect of grouping varying items (like different sizes) before they reach the retail environment, aiding in inventory replenishment and diversity.
- Case Packs deal with the logistics of shipping and handling, containing identical items in a single case to maintain uniformity and streamline stocking processes.
- Product Bundles are a sales strategy that groups complementary products for purchase at a discounted rate, enhancing customer value and increasing sales volume.
Understanding these terms and their applications can greatly improve inventory management practices and sales strategies within a retail or distribution environment.
See related:
How do I create a new Prepack Code?
How do I associate a Prepack with a Style?
How do I create a new Case Pack?
How do I associate a Case Pack with a Style?