By Jim Lewis, CEO Improved Retail Solutions LLC
“When we ship new products, we want to know ideal absent what chances exist- superior or bad”. That was the remedy presented when I asked a consumer this 7 days what facts is the most helpful to his group. Getting an “early warning” system in our POS evaluation program would support us react rapidly as soon as we know how a products is carrying out. As a massive manufacturer who imports comfortable house products and solutions- sheets, comforters, throws, and so forth., just about every working day counts in conditions of being equipped to react.
It is uncomplicated for you to get lost in the weeds with so several POS stories and dashboards remaining shipped. It can be tough to identify distinct opportunities and actions. I advocate creating reviews that assist respond to certain thoughts. For case in point, are new things selling effectively? Has the product sales trend adjusted on an item? Must a product go to a lot more shops, or less? Is a application up or down to previous 12 months? All these varieties of issues can be acted upon and have an speedy impact on the business enterprise.
The Real Picture
Employing door amount POS action is crucial. If you only search at the best line income and inventory it does not necessarily paint a realistic photograph of what is likely on. For illustration, a superior percentage of merchants might have by now offered out. Or a high quantity of shops with inventory and no gross sales could signify it hasn’t been established nevertheless. All these matters can dilute functionality- the best line variety does not mirror what’s truly likely on. Pointing out those 2 studies are fantastic early predictors of functionality.
POS Analysis in the Dashboard
Those people figures can be simply integrated into a dashboard. In this illustration we have 3 blocks of info pinpointing opportunities. Let us appear at them:
Very best New Merchandise Effectiveness: This block appears to be at products that have not long ago began selling (AGE < 8 weeks). This lets us focus on those new items to see if they are selling on, better or worse than plan. From there you can start making assortment decisions. This block goes back to what our client really wants- an early warning system to see if something can be expanded or decremented.
Stores Sold Out: This block needs to be parameterized properly to ensure it shows what you want. You may want certain items to be out of stock, so it needs to show only active, continuing items that have sold something but are now out of stock. If there’s still time left in the season, it’s an opportunity. Every day the store is sold out you are increasing lost sales and leaving money on the table.
LW Items with High WOS: These are items that have too much inventory and require attention. There are many different reasons why an item may show up- not properly merchandised, bought too much, sales have slowed down, etc. Either way, it’s important to look at these sku’s and take the appropriate action.
These are just 3 examples of how POS analysis can be more actionable. Add others based on your individual business. The point is rather than have someone comb through a report looking for these issues, just present them in a clear, simple format.
To see more examples, click here.