Meaning of Purchase Deactivate:

Purchase deactivation is a strategy used by retailers to temporarily or permanently stop ordering or stocking an item in their store. It can be done for a variety of reasons, such as low demand, poor sales performance, product obsolescence, or high costs.

When a retailer deactivates a product, it means they will not be purchasing any more inventory of that particular item. This can be done in different ways, such as by removing the item from the store shelves, marking it as discontinued or out of stock, or removing it from their ordering system.

Temporary deactivation is often used when a product is experiencing slow sales or when a new model or version of the product is being released. In this case, the retailer may stop ordering the item for a period of time, allowing the existing inventory to sell through before restocking it.

On the other hand, permanent deactivation is used when a product is no longer profitable or relevant to the store's target market. In this case, the retailer may remove the item from their inventory completely, either by returning unsold stock to the supplier or liquidating it through discount sales.

Overall, purchase deactivation is a common practice in the retail industry, used to manage inventory and ensure that retailers are stocking products that are profitable and relevant to their customers.

Benefits:

The benefits of purchase deactivation for an item in a retail business include:

Cost savings: By deactivating products that are not selling well or are no longer profitable, retailers can reduce inventory costs, avoid overstocking, and focus their resources on products that are more likely to generate revenue.

Improved cash flow: By reducing inventory costs, retailers can free up cash flow that can be used for other purposes, such as investing in new products or improving their store operations.

Improved inventory management: Purchase deactivation helps retailers to manage their inventory more efficiently by focusing on products that are more likely to sell and reducing the amount of slow-moving or obsolete inventory.

Enhanced customer satisfaction: By focusing on products that are relevant to their customers, retailers can enhance customer satisfaction and loyalty, leading to repeat business and positive word-of-mouth.

Increased sales: By focusing on products that are more likely to sell, retailers can increase their sales and revenue, leading to improved business performance.

Improved store operations: By reducing the number of products they stock, retailers can simplify their store operations, making it easier to manage their inventory, restock shelves, and fulfill customer orders.

Overall, purchase deactivation can be a powerful tool for retailers to improve their inventory management, reduce costs, enhance customer satisfaction, and increase sales. It enables retailers to focus their resources on products that are more likely to generate revenue and improve their overall business performance.

To deactivate purchase of a single product, do the following steps:

Step 1: Go to MDM > Item Master Management > Item Master

Step 2: Click on Add button to Add or click on Edit button to Edit.

Step 3: Click on Outlet Specific tab and locate Purchase Allowed option. Put a tick on the check box to allow purchase. Remove the tick to disable purchase.

Step 4: Click on Add add and update.

***Note: To activate the option in Item master, do the following steps:

Step 1: Go to Admin > Configuration > Masters.

Step 2: Search for the keyword "Purchase" in the search box. Then put tick on visible option for Purchase Allowed.

Step 3: Click on Save Configuration.

Conclusion:

The advantages of purchase deactivation for an item in a retail business include:

Increased profitability: Purchase deactivation allows retailers to focus on products that are more profitable and relevant to their customers, leading to increased revenue and profitability.

Better inventory management: By deactivating slow-moving or obsolete products, retailers can manage their inventory more efficiently, reducing carrying costs and minimizing the risk of overstocking.

Enhanced customer experience: By focusing on products that are relevant to their customers, retailers can enhance the overall shopping experience, improving customer satisfaction and loyalty.

Improved store operations: By reducing the number of products they stock, retailers can simplify their store operations, making it easier to manage their inventory, restock shelves, and fulfill customer orders.

Reduced waste: By deactivating products that are not selling well, retailers can reduce waste, minimize losses, and improve their environmental sustainability.

Increased agility: Purchase deactivation allows retailers to respond more quickly to changes in market demand, consumer preferences, or supplier availability, enabling them to adapt their product offerings to meet changing conditions.

Overall, purchase deactivation is an effective strategy for retailers to manage their inventory, improve profitability, enhance the customer experience, and improve their overall business performance. By focusing on products that are relevant and profitable, retailers can improve their competitiveness and position themselves for long-term success.