10 QUESTIONS TO CHALLENGE YOUR NEW ITEM STRATEGY
Updated: Jul 13, 2018
Does the scenario I share in the first 30 seconds of this video inspire you or scare you?
Are you ready to stand & deliver? As this video shares the details, here is a summary of the 10 questions!
10 CHALLENGING QUESTIONS IN YOUR NEW ITEM CREATION STRATEGY:
1. Demand Forecast: Are you flying solo in setting it, or inviting knowledge in from supplier & merchandising peers? Are you Co-owning the forecast?
2. Demand Profile: Hey, if 23% of your items are profiled, shouldn't about 23% of your new items have profiles? We understand there is no history, but borrow a proven profile or category-level profile for a smarter start.
3. Dem Deviation (madp): Are you confident that 20% is the best starting point for every type of item? Listen to our guidance & use our analytics to know the smart DemDev starting point for each range of forecast. Set it unique.
4. & 5. Lead Time & LT Variation: Sure, the item will fall under it's supplier, but if item level lead times are active, consider also setting a unique LTV for the item. Check those same analytics. Perhaps short LTs need a higher LTV right from the start.
6. & 7. Order Cycle & Line Cost: Adding one item to a line is no big deal, but after adding many it will be time to revisit your Ordering Analysis to see if a new Order Cycle is needed. Does this item require more effort to buy and receive? Consider adjusting the line cost for smarter order for years to come.
8. Buying Multiple: Set a smart one from the start, but as that Demand Forecast moves to a place you did not expect, be ready to adjust to a smarter buying multiple. Catalyst Portfolio analytics can help automate that process!
9. Service Goal: We expect that you probably have this one covered, however the same thoughts apply as in buying multiples. If the item moves from a C to an A item, will you remember to adjust to a smarter Service Goal? Catalyst can also help automate that process.
10. Shelf Life & Beyond: Get all of these components right from the start and avoid potholes that limit new item success.
This short HIKE is part of our New Item Excellence Trek.
Join Barry and I on that Trek here:
And now it's time for Action, because...
We Lead the Journey, but You Deliver the Results!