By Jim Lewis, CEO Increased Retail Answers LLC
“When we ship new goods, we want to know proper away what alternatives exist- very good or bad”. That was the respond to presented when I questioned a consumer this week what information is the most handy to his staff. Acquiring an “early warning” process in our POS investigation regimen would enable us react swiftly after we know how a item is doing. As a huge maker who imports smooth home solutions- sheets, comforters, throws, and so forth., every day counts in phrases of becoming equipped to react.
It is quick for you to get dropped in the weeds with so many POS reports and dashboards currently being shipped. It can be difficult to detect specific options and steps. I recommend making reviews that support reply certain concerns. For instance, are new merchandise providing very well? Has the gross sales pattern improved on an item? Should really a product or service go to extra shops, or less? Is a method up or down to final calendar year? All these forms of thoughts can be acted upon and have an quick affect on the enterprise.
The Actual Photograph
Using door degree POS exercise is critical. If you only search at the prime line gross sales and stock it does not always paint a real looking photograph of what’s heading on. For case in point, a significant percentage of outlets may perhaps have now marketed out. Or a superior quantity of shops with inventory and no income could suggest it has not been set yet. All these points can dilute overall performance- the major line variety does not reflect what is definitely going on. Pointing out individuals 2 statistics are excellent early predictors of functionality.
POS Analysis in the Dashboard
All those statistics can be very easily built-in into a dashboard. In this instance we have 3 blocks of data pinpointing chances. Let us look at them:
Best New Merchandise Performance: This block appears to be like at goods that have just lately started off 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.