We believe that data driven decision making will become more and more important in the years to come. One of the industries that has been playing catch-up in the last few years is fashion retail. We currently work with a great number of fashion distributors and fashion retailers and consult them on there buying decisions for their omni channel stores.
We have come to notice that many budget decisions are taken on the bases of last season’s sales and sales quotes. Most of our customers have always used last year‘s numbers to decide on how much of a certain brand to buy and nothing more. We believe that there is a more efficient way of taking budgeting decisions for fashion retailer.
In this article we will explain the three most important things to consider when taking budget decisions. In essence we want you to forget about sales quotes and ignore them entirely.
Resource allocation and optimization is a topic that many retailers do not look at often enough. Budget allocation decisions are generally taken once or twice a year. This is usually done when it is time to purchasing the goods for the next season.
In our opinion, one of the core capabilities of an omnichannel organization is being able to perform analytical optimization. Analytical optimization might sound very technical, but by that we mean that you should look at each part of your business through the eyes of a business intelligence expert. Of course not every organization has these resources and capabilities in-house. However, if you go about these processes pragmatically, there is a lot to be gained.
We believe that it is important to plan more regularly and in shorter cycles.
For retail businesses this means using the off-season dips to plan and optimize your business. The summer months are great for that. Especially in fashion retail, businesses focus too much on top level revenue and inventory levels. The Winter months are the ones in which the money is made. Therefore you need to plan ahead, build up cash reserves and give yourself time to breath in the summer months. „How setting targets can help optimize your omnichannel resources effectively“ weiterlesen