Monitor Buyer and Vendor Activities for Increased Retail Profit
The Profitect Planning & Buying (P&B) module allows you to understand the behavior of your planning, buying and sales data. The module delivers quick, directed actions equipped with the necessary details to understand and impact the behavior of your procurement, allocation and replenishment processes. It ensures greater long-term success by comparing incoming P&B data with customizable benchmarks and statistical metrics from the forecast, plan and actual sales at the style, size, color and UPC level. Using pattern analysis, the module delivers directed, timely actions to help improve overall P&B performance and accuracy. The module automatically analyzes data patterns with key performance indicators (KPIs) such as forecast accuracy, sell through percent, order and forecast adjustment rate, and weeks of supply to identify opportunities and solutions for margin expansion. It provides specific, guided, and actionable insights for additional growth, sending them directly to the appropriate personnel for immediate action. The planning & buying module identifies data anomalies, directly provides decision-makers with specific actions to implement, and continuously measures results to ensure positive outcomes.
- Improves assortment selection, localization and fine tune of assortment solutions
- Increases visibility of forecast to actual accuracy and detailed root cause
- Improves promotional and seasonal sell through
- Reduces lost sales
- Prevents out of stocks
- Minimizes order adjustments
- Replenishment and Distribution Orders
- Inventory locations (On-Hand, In-Transit, On-order)
- Shipments to stores
- Allocator overrides
- Order Allocation
- Model Stock Levels
- Product Life Stage: new/mature/seasonal/clearance
- Seasonal and Promotional Calendars
- Trade Promotions
- Inventory level
- Purchase orders
- Account Payments
In addition to being able to identify fraudulent behavior, Profitect provided a task management system that delivered timely, detailed, and guided actions to the appropriate personnel. The Planning & Buying module was easily adaptable to the company’s specific needs.
- The Challenge: A convenience store was experiencing a pattern of irregular shares between suppliers, where one supplier supplied substantially more than the allowed limit, based on the store policy, while diminishing the share of other suppliers.
- The Course of Action: The stores implemented the Profitect Planning & Buying module to provide best practice recommendations to recover profits. With the help of the module, the store discovered that the deviation in supply was approved by the buyer, who increased the share of one supplier in order to gain financial benefits from the supplier’s larger share.
- The Results: The module automatically sent an alert to management prompting the investigation into the buyer’s fraudulent activity and the close monitoring of all buyers and vendors for irregular purchasing activities. The opportunity resulted in the store recovering over $55,000 in profits.
The Profitect Planning & Buying module provided users at all levels with real time updates and profit amplification opportunities. The best practice solutions bank offered timely, guided actions, giving presenting strategies for correcting any issues identified.
- The Challenge: A department store was experiencing a pattern of irregular distribution of sizes of a specific product, indicating an unusual purchasing pattern.
- The Course of Action: The retailer implemented the Profitect Planning & Buying module to provide best practice recommendations to recover profits. With the help of the module, the retailer discovered that the buyer was given a discount and convinced to order more of the less popular sizes of the product. The Order Recommendation System was overruled to change the quantities of different sizes that were to be ordered.
- The Results: The module automatically sent an alert to management prompting a test to ensure the Order Recommendation System was working properly as well as the close monitoring of management with overruling power, and any other buyers and vendors involved in procurement, that flagged any improper decisions or non-compliance. The opportunity helped the retailer recover $25,000 in profits.