Push beyond your fears and go boldly for seasonal profiling results
OUR APPROACH: MEASURE Let's do this together. If you can create profiles and immediately measure and see their success and gaps, you will have the
tools and confidence to refine and continue
Typically the last area that even seasoned inventory pros believe that they master.
Let's take it in steps, together
WHY?
#1 "We don't have seasonality"
Really?? Let's keep an open mind!
COMMON
PITFALLS
PREPARE FOR SUCCESS:
1 UNDERSTAND THE GOAL New item excellence is as much about collaboration as your components
2 COMPONENTS NEEDED The guidance below is designed to help you to the best start possible
3 ONGOING COLLABORATION Keep your partners in the loop and feeling ownership of new item success
1 DEMAND FORECAST:
Let’s face it, when we get a new item from our merchandising team, we feel the urge to cut the estimated forecast by about 50% (and then often that’s too high!). Having said that, whatever number we eventually land on, we need to set it, document it, and watch it closely.
The initial sales are typically higher than normal, so a strategy of freezing the item until all of the initial pipeline fill occurs will keep the forecast in place. Remember these items won’t fall into an exception category when they are frozen (which is a good strategy), so a Watch Code, System Class Report, or unique grouping with an open group code are all good tactics to use
MR FRIENDLY'S COMPONENT GUIDANCE
fRANK vAN vLECK
NOW MEASURE & REACT
DAILY P-T-D WARNINGS A quick daily view Click to view Live Sample Chart
NEW PIVOT EXCEPTIONS From 30K feet, zoom to your needs Click to view Live Sample Pivot
New Items Are..
5%
Of Total Items
Making Up..
8%
Of Total Inventory $
Driving..
3%
Of Sales Revenue $
And Achieving..
89%
Service Attained
WHAT ARE YOUR NUMBERS TELLING YOU?
ADDITIONAL STEPS FOR EXCELLENCE
Overstock Watch
Overstock has to be monitored much more closely on New items. Catch it before it catches you.
Incorporate overstock analysis into your period-end program. Introduce the format to your supplier and merchandising partners so that they work with you to avoid those costs.
Overstock has to be monitored much more closely on New items. Catch it before it catches you.
Incorporate overstock analysis into your period-end program. Introduce the format to your supplier and merchandising partners so that they work with you to avoid those costs.
New Item Warnings
Keep Colaborating
Overstock has to be monitored much more closely on New items. Catch it before it catches you.
Incorporate overstock analysis into your period-end program. Introduce the format to your supplier and merchandising partners so that they work with you to avoid those costs.
