Business Analytics Mean Good Inventory Control
An easy way to improve your retail business is to do a department/class comparative that gives you the percentage of inventory in each department and the contribution of that department to the overall revenues of the business.
If twenty percent of your inventory is in department “A”, but it only contributes ten percent to the overall revenue, you have a problem which can easily be corrected.
All of that information should go to your open-to-buy plan and you can then make the adjustments necessary for future purchasing. You now have a road map to make good decisions on how much inventory should be in each department. You will also need to go to your retail stock ledger and review which vendors perform well with good turns, robust sell through and good cumulative gross profits.
Those bad performing vendors can be approached should be willing to negotiate improved pricing or better terms. If this sounds like a lot of work, it’s not with a totally automated retail system and only requires you to look at this information occasionally. Being a busy specialty retailer that wears many hats, you can appreciate the ease of use and precise reporting.
ProphetLine allows you to do what you do best, sell your products without having the hassles of being a technical guru.