Floor-Ready Merchandise (FRM)

Tags: Glossary

Goods shipped by suppliers to retailers with all necessary tags, prices, security devices, etc., already attached so that goods can be cross-docked rapidly through retail distribution centers (DCs) or received directly at stores.

What is Floor-Ready Merchandise (FRM)?

Floor-Ready Merchandise (FRM) refers to goods that are shipped by suppliers to retailers with all the necessary tags, prices, security devices, and other essential elements already attached. The purpose of FRM is to enable the rapid movement of goods through retail distribution centers (DCs) or to be received directly at stores without the need for additional processing or preparation.

The concept of FRM is rooted in the desire to streamline the supply chain and improve operational efficiency. By ensuring that merchandise arrives at its destination in a ready-to-sell condition, retailers can minimize the time and effort required to make products shelf-ready. This allows for faster turnaround times, reduced labor costs, and ultimately, a more efficient and profitable retail operation.

One of the key advantages of FRM is its ability to facilitate cross-docking. Cross-docking is a logistics practice where incoming goods are unloaded from an inbound vehicle and immediately loaded onto an outbound vehicle, with little to no storage in between. By having all the necessary elements already attached to the merchandise, retailers can quickly sort and distribute the products to their respective destinations, whether it be retail stores or specific departments within a distribution center. This eliminates the need for time-consuming tasks such as tagging, pricing, or attaching security devices at the retailer's end.

FRM also offers benefits in terms of inventory management. With goods arriving in a floor-ready state, retailers can easily track and manage their inventory levels. The attached tags and labels provide accurate information about the product, including its SKU (Stock Keeping Unit), description, and price. This enables retailers to have real-time visibility into their inventory, making it easier to monitor stock levels, identify fast-selling items, and make informed decisions regarding replenishment.

Furthermore, FRM enhances the overall customer experience. By having merchandise readily available for display and sale, retailers can ensure that their shelves are consistently stocked with the latest products. This reduces the likelihood of out-of-stock situations, which can lead to customer dissatisfaction and lost sales. Additionally, the standardized presentation of FRM, with consistent pricing and labeling, creates a cohesive and professional shopping environment for customers.

In conclusion, Floor-Ready Merchandise (FRM) is a logistics concept that involves shipping goods from suppliers to retailers with all the necessary elements already attached. This approach allows for rapid movement of goods through retail distribution centers or direct receipt at stores, minimizing processing time and improving operational efficiency. FRM enables cross-docking, simplifies inventory management, and enhances the customer experience. By embracing FRM, retailers can optimize their supply chain and create a seamless shopping experience for their customers.

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