A crucial ingredient is having comprehensive, actionable information using fewer reports. In our experience, buyers will use 2-3 reports consistently. Occasionally they may use a fourth, but rarely on a regular basis. Yet many systems boast at how many reports they have. In this case, less is more, as buyers tend to "wing it" if the information they need requires running another report.
Custom Reports
Pace has designed and developed database reports that combine multiple in-house reports into one report. These are color coded to illustrate the GMROI performance by quartile at the department, class, vendor and sku levels. These simplify buying and enable middle and upper management to quickly review buying processes. These reports contain unique, critical information such as percentage comparisons of gross profit contribution compared to average inventory and future commitments at cost. These comparisons can be at all levels including department, class, vendor and sku. Units and dollars are combined on the same page.
In a short time, with proper training, buyers consistently deliver greater sales, turns and margins. Performance in this area is quantifiable. The speed and extent of progress is measurable. Cost benefit ratios are known.
Allocation and Consolidation
One of the greatest challenges for retailers with many stores is allocation. Pace has developed over a 35 year period allocation algorithms that improve initial allocations and consolidations. Surplus stock for replenishment is reduced or eliminated. Skus have both profile and hierarchical coding. New skus can be treated as derivatives and linked to previous skus to bring forward the data the algorithms had previously generated.
Allocations and consolidations are automatic and can be overridden. Skus can be coded for a variety of management methods. Individual locations can be factored up or down to adjust historical indices to changes in local retail environment or space constraints.
Lost Sales Opportunities: An Unknown
A hidden benefit of improved allocations and consolidations is the reduction of lost sales opportunities. With all the data available in the best systems, you have no idea as to how many sales were lost for poor allocations and consolidations. You do know very well, however, the markdowns generated to clear inventories that could have been sold at full price in other locations. Lost sales increase customer dissatisfaction
that is another unknown.