Retailers come to have more than 80% of their working capital tied up in stock during the season in progress. Excess stock quickly become a liquidity problem, as it is not converted back to cash unless margins are reduced by means of discounts and promotions or, even worse, when it accumulates to be sent to other channels such as outlets, delaying its sale.
Identifying in advance which products will not have the level of rotation we expect and controlling replenishment with stock cover that is in keeping with sales forecasts are key factors in helping retailers achieve the ROI on their investments.
Analyticalways Stock Management Solutions, designed and developed by retail experts, are already helping brands in Europe and America to avoid overstock and to manage stock excesses through coherent proposals to balance inventory between stores.
Are your stores suffering from overstock?
Throughout their sales campaigns, it is very common for retailers to have a large part of their working capital invested in inventory for the current season.
But what happens if the pace of sales at some stores does not meet expectations?
In these cases, excess stock quickly become a liquidity problem, as it is not converted back to cash, except by reducing margins with discounts and promotions or, even worse, once accumulated, supplying other channels such as outlets, delaying its conversion.
On the one hand, identifying in advance which products will not have the expected level of rotation and, on the other, controlling replenishment with stock cover based on sales forecasts, are key factors in helping retailers achieve an adequate ROI on their investments.
Up in the clouds it is easier to see the warehouse and the stores!
Being a cloud platform also allows users to benefit from all the improvements as they arise and are implemented, thanks to the close contact maintained by consultants with the planning teams of the user companies throughout all stages of the seasons. This type of interaction does not end after the launching of the solution (less than 30 days), just the opposite, consultants eventually become another link in the retailer value chain, joining the teams whenever they are needed!
Their experience helps planners benefit from the valuable information that the powerful predictive analytics engines provide on the cloud platform and, thanks to specific sub-projects, they can be useful in dealing with certain overstock cases or drops in performance of the product assortment in stores.
Join the Retail ROIvolution!
The best way to accompany the digital transformation that all companies must undertake, depending on their growth rate and specific circumstances, is to join the ROIvolution; ROI is not measured at the end of the year, it is built day after day, decision after decision, combining early good practice and strong corrective actions.