By Jim Lewis, CEO Improved Retail Options LLC
“When we ship new goods, we want to know correct away what options exist- fantastic or bad”. That was the remedy specified when I asked a consumer this 7 days what data is the most handy to his staff. Owning an “early warning” technique in our POS evaluation program would assistance us react quickly at the time we know how a product or service is undertaking. As a massive manufacturer who imports gentle dwelling items- sheets, comforters, throws, etc., each individual working day counts in phrases of becoming capable to respond.
It is simple for you to get lost in the weeds with so quite a few POS stories and dashboards being shipped. It can be difficult to detect particular alternatives and actions. I suggest creating studies that enable reply particular questions. For example, are new goods advertising nicely? Has the income development improved on an merchandise? Ought to a product go to far more shops, or less? Is a application up or down to final 12 months? All these forms of concerns can be acted upon and have an fast effect on the business.
The Genuine Picture
Making use of doorway stage POS exercise is very important. If you only appear at the leading line profits and stock it does not automatically paint a reasonable photo of what’s going on. For case in point, a high share of suppliers might have by now sold out. Or a higher range of suppliers with inventory and no income could necessarily mean it hasn’t been established nevertheless. All these points can dilute overall performance- the top line variety doesn’t replicate what’s actually heading on. Pointing out individuals 2 figures are great early predictors of functionality.
POS Evaluation in the Dashboard
People studies can be easily built-in into a dashboard. In this example we have 3 blocks of details pinpointing options. Let us appear at them:
Most effective New Merchandise Effectiveness: This block seems at goods that have a short while ago begun 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.