Retail is a data driven problem so it be supposed to go along with the purpose of the more data you control the better. Not necessarily so if you're not looking next to data in the exact context. We be inclined to look next to data next to with the purpose of flash in period and not in an historical perspective. If you're a baseball fan you live and go down with records comparing solitary player to any more based on a bunch of fundamental records. By using a fixed a agree of comparable data fans or baseball executives are able to compare a player's price more accurately and perhaps predict coming performance.
The same notion take authentic in retail. By using a fixed agree of records and comparing on a monthly basis you can catch a glimpse of trends and and as a end result take counteractive skirmish quickly. I industrial a "Key Performance " table in support of a client and a process in support of them to examine individuals records. They entered the records into a table and bent a essay with the purpose of became an essential management tool. Since an illustration, by entering your December "key numbers" into the monthly performance table you can examine them and compare them to stay fresh Decembers and plus see to it that current trends month to month.
Here's a make a list of a number of of the fundamental records I suggest you look next to:
- Sales in dollars
- Total come to of trade
- Average trade
- Number of items for each trade GM% for each trade
- Payroll as a % of sales
- Value of catalog next to retail next to the finish of month
- Sales horses ratio ( months of catalog on hand)
Obviously you can add other records with the purpose of you feel are weighty but the process allows you to control a monthly performance supervise with the purpose of provides a ample look next to your problem. Why enter them manually into a table more exactly so therefore automating the process, as it makes you focus on the records are you enter them. Old drill I know but an operational management tool. I control a number of multi-store client who uses this tool as the important place of their monthly managers business meeting.
This process has been a powerful tool and fostered a number of lively conversations flanked by managers not simply comparing their records but pointing not at home areas somewhere they can get better. Past performance is a fundamental dynamic in determining coming performance but simply if viewed in the exact context. Nate Silver in his paperback "the intimate and the noise" explains The Productivity Paradox is what time in a row growth outpaces our knack to process it. Looking next to the exact data next to the exact period in the exact context are the keys to flourishing data analysis.
