Item-based Management (Tanpin Kanri) (PowerPoint PPTX Slide Deck)

PPT DESCRIPTION

Tanpin Kanri (Item-based Management) PPTX: Learn the Japanese business strategy focusing on item-level control. Download this detailed management model presentation now. Item-based Management (Tanpin Kanri) is a 35-slide PPT PowerPoint presentation slide deck (PPTX) available for immediate download upon purchase.

Explore Slides inside the Deck:

Scaling Tanpin Kanri across Multiple Retail Formats and Channels Continuous Sales and Customer Response Review Cycle Retail Management Systems: Bridging Shelf and Shopper Gaps

Most retail organizations still rely on centralized, category-driven inventory planning models. These systems overlook local context, suppress frontline insight, and often mismatch product availability with customer needs. The result: overstocked shelves filled with irrelevant items and missed sales opportunities for what customers want.

Item-Based Management (IBM) also known as Tanpin Kanri, developed by 7-Eleven Japan, solves this problem. It empowers store staff to treat every product as a unique demand signal. Rather than relying on macro-level forecasts, teams observe customer behavior at the ground level and adapt SKU selection daily.

IBM empowers Retail teams to shape inventory decisions based on real-world demand—not static category plans.

In this PPT presentation, we discuss the 3-step Tanpin Hanri Cycle:

1. Observe: Monitor customer behavior, shelf interactions, and foot traffic

2. Hypothesize and Act: Order or adjust SKUs based on live observations

3. Review and Refine: Use POS feedback to validate decisions and improve

We also discuss the 4 core principles of Tanpin Hanri:

1. Local demand as the driver of inventory decisions
2. SKU-level hypothesis testing and daily merchandising cycles
3. Empowerment of frontline staff to lead assortment planning
4. Continuous learning through POS feedback and customer data

Other topics covered include comparison of Item-Based Management with Category-Based Management, scaling across Retail channels, a case study, among others.

This PowerPoint presentation on Item-Based Management and Tanpin Kanri also includes slide templates for you to use in your own business presentations.

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PPT SLIDES

Scaling Tanpin Kanri across Multiple Retail Formats and Channels

This PPT slide outlines a framework for scaling Tanpin Kanri, a localized execution methodology, across diverse retail formats beyond convenience stores. The core principles—observe, hypothesize, act—are adaptable to supermarkets, e-commerce, and specialty retail. Retailers utilize foot traffic and POS data to adjust promotions and inventory in department stores, while e-commerce leverages behavioral data for hypothesis-driven SKU exposure. Specialty retail customizes product recommendations based on neighborhood preferences. Key requirements for scaling include flexible supply chains, modular inventory systems, frontline training for rapid decision-making, and feedback mechanisms for micro-level performance monitoring. With the right infrastructure and cultural shift, Tanpin Kanri can enhance response times and inventory management across various retail environments, enabling faster adaptation to customer behavior and demand fluctuations.

Continuous Sales and Customer Response Review Cycle

This PPT slide outlines the final step in a cyclical review process for continuous improvement in item-based management within the Tanpin Kanri framework. The process includes 3 components: Review, Review of Sales Outcome, and Refining the Approach. The Review and Refine step evaluates sales data post-sales period, assessing product performance against POS sales figures for immediate feedback. The review of sales outcomes analyzes customer responses and deviations from expected results, revealing shifts in shopper behavior and identifying issues like placement or timing. Refining the approach fine-tunes order quantities, stock replenishment frequencies, and layout adjustments based on observed demand. This ongoing review mechanism ensures merchandising aligns with consumer behavior, fostering a responsive, data-driven management approach that optimizes inventory and merchandising strategies.

Retail Management Systems: Bridging Shelf and Shopper Gaps

This PPT slide compares 2 approaches to retail management: Category-Based Management and Item-Based Management. Category-Based Management assumes uniform demand across regions, leading to inefficiencies like bloated inventories and low-turnover SKUs. It prioritizes logistical efficiency, supplier contracts, and national promotions, but overlooks local demand variations. In contrast, Item-Based Management treats each SKU as a hypothesis, focusing on individual performance and real-time data updates to align shelf presentation with shopper needs. Key differences include centralized decision-making in Category-Based Management versus decentralized, front-line driven insights in Item-Based Management. Responsiveness is slow in category-based systems, while item-based systems are designed for real-time adjustments, maximizing relevance and customer satisfaction. Shifting to item-based management improves inventory efficiency and enhances shopper engagement.

Dynamic 3-Step Store-Level Loop for Frontline Adaptation

The Tanpin Kanri Cycle is a three-step store-level process to enhance responsiveness and agility in retail. It includes: Observe, where staff monitor real-time customer behaviors and signals; Hypothesize and Act, which translates observations into product adjustments; and Review and Refine, assessing outcomes against sales data for next-day adjustments. The cycle's strength lies in its rapid feedback loop, often completed within 24 hours, enabling swift responses to shifting demand. This approach replaces traditional centralized directives with store-level actions, fostering a responsive environment. The cycle is part of a broader item-based management framework aimed at optimizing inventory and demand insights, empowering staff to make real-time decisions that improve store performance and customer satisfaction.

Core Principles Driving Tanpin Kanri’s Retail Execution Effectiveness

This PPT slide outlines the core principles of Tanpin Kanri, an IBM-driven methodology for enhancing retail execution through adaptability and data-driven decision-making. Key principles include Daily Demand Hypothesis Formation, which encourages staff to develop localized product hypotheses based on customer behaviors; Empowered Frontline Autonomy, which allows store personnel to make merchandising and ordering decisions independently; Data Feedback Loops and POS Integration, focusing on utilizing POS data for frontline insights; and High-Frequency SKU Optimization, where teams continuously refine product mixes based on real-time sales data. Together, these principles create a decentralized, data-responsive, and customer-focused retail system, ensuring agility and scalability while emphasizing frontline empowerment and continuous refinement for sustained retail performance.

Dynamic SKU Optimization for Rapid Store-Level Merchandising

Static SKU planning often fails to adapt to local market shifts. Tanpin Kanri addresses this with high-frequency SKU optimization, enabling rapid merchandising updates. This methodology fosters a continuous testing environment at the store level, where staff make data-informed adjustments to SKU placement, quantity, and bundling based on daily sales results. Frequent adjustments driven by sales outcomes and micro-level testing refine stock decisions quickly. This approach boosts sell-through rates by eliminating underperforming items and enhancing visibility of high-performing SKUs. It signals a shift from rigid planning to a fluid operational model that aligns merchandising with real-time consumer demand, ultimately increasing sales efficiency and store performance.

Source: Best Practices in Retail Industry, Retail Strategy, Inventory Management PowerPoint Slides: Item-based Management (Tanpin Kanri) PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting