Atlanta, GA, November 14, 2008 --(PR.com
)-- daVinci’s 1-2-3 Survival Guide to Recession Proof a Retail Business.
In today’s economic climate, retailers need tools that give them immediate and tangible value.
daVinci® today launched its Survival Guide to help retailers recession proof their business. According to Greg Buzek, President of IHL Group, “Poor planning by buyers represent about $16.4 billion in lost sales”. This is compounded by many retailers’ reliance on historical forecasts which can result in unstable and unpredictable demand. So the very key to survival seems to be outside of a retailer’s control.
Is there a secret to "recession-proofing" the retail industry? Can a retailer improve sales profitability and productivity when the going gets tough? daVinci says the answer to both of those questions is a definite “Yes” and “Yes”. In fact, some people and companies not only weather recessions but flourish in them. daVinci lists how any retailer can count themselves among those who thrive.
improve profit margin by truly interrogating inventory status
maximize human investment, enable the team to do things faster and smarter
create agility, giving the team the visibility and ability to react quickly
During poor economic times, retailers must take a long hard look at their biggest cost – their inventory. To simply give a directive to cut inventories by a certain percentage is not enough: such a directive often leads to cutting inventories across the board. The results can be dire; it penalizes the better performing high volume stores with not enough inventory, and overloads the smaller stores with too much inventory. The outcome is lost sales in high volume stores and markdowns in low volume stores.
So how does a retailer reduce inventory effectively without sacrificing sales or profit margin? This is incredibly hard to do with current planning tools. The low levels of detail, roll ups and spread downs can be overwhelming in spreadsheets. Ideally, retailers should be able to reduce inventories effectively by modeling and fine-tuning assortments to address the needs of each store group. See how daVinci says their solution works for retailers, regardless of size.Empower Human Capital
Studies show buyers and planners spend more than 50% of their time in data entry administration rather than planning and modeling the buy. The hidden costs associated with spreadsheets are substantial, particularly when considering the hours spent maintaining the information contained in these individual files on individual PCs. In addition, spreadsheets can cause havoc in a typical retail planning environment due to their inconsistency of data and separate planning processes.
A retailer can give the merchandising team a tool to free them from data administration. This allows them to work smarter with instant access to information and have the ability to plan and model their assortments. In light of how long it takes to set up, populate, adjust, and consolidate spreadsheets, daVinci states they can immediately improve the team’s productivity.
A buyer has just spotted an emerging trend... how long will it take the organization to get the right merchandise in front of their customers? There is a lot to be said about how fast things change today.
An organization’s ability to be nimble – to quickly and easily adapt to changing conditions and continue to perform at a high level – is a matter of survival. It is in this role that organizational agility creates value for a company. When the business environment shifts, those who react fastest and most effectively can capture or gain market share. The organization’s agility can become a strong competitive enabling force. In a world where change is dramatic, those who can adapt to the new conditions quickest have the best chances for success. "Survival of the fittest" has evolved into "survival of the most agile."
Find out how a merchandising team can gain agility and competitive advantage with an assortment planning solution that recognizes and expects change; provide instant enterprise visibility with intelligent alerts to highlight business anomalies to easily identify and focus on the issue to action.
a revolutionary Agile Implementation methodology that's tailored to dynamic business environments to ensure project success and immediate ROI
daVinci’s veteran team of experts are committed to successful assortment planning.
daVinci is focused on helping retailers maximize their merchandise assortments profitably. daVinci’s assortment planning solution integrates business intelligence with buyers’ knowledge to fashion individual assortments optimized to the tastes of every micro-market. Created by merchants for merchants, daVinci bridges the gap between concept and execution, to getting the right product into the right stores and fixtures at the right time. The revolutionary multi-tiered architecture allows retailers of any size to implement at their own pace with a low-risk/high-return philosophy. Bridging the gap between concept and execution, daVinci Assortment is the planning vehicle to getting the right product into the stores and fixtures at the right time. Take control of the assortment planning process every step of the way with daVinci.
For more information, visit http://www.davinci-retail.com