Retail Analytics is only half the answer. Whilst analytics help give us insight into the business, it’s the action that flows from this insight that actually makes the impact.
This is the strength that Professional Advantage’s RAMP product offers. RAMP stands for Retail Analytics and Merchandise Planning. The merchandise planning (MP) component feeds directly off the retail analytics (RA). It automatically takes input from the analytics and produces recommendations for purchases or transfers. Hence, saving time and manpower.
RA will gather sales data from multiple stores across all product lines and combine this with inventory stock levels. In doing so it gives a picture of how the business is travelling. Using RA, a retailer can breakdown the sales activity. Items in one store may be selling twice as fast as the next store; in this case a transfer rather than an order may be more appropriate.
MP takes the data from RA and produces a list of recommended Purchase Orders and Transfers to will optimise inventory levels. It incorporates a number of rules and algorithms to help optimise performance. For example it can build in seasonality trends.
The RA component alone provides retailers with significant value. Optimising the business is key to driving higher volume, increased margins and lower costs. Providing managers with informative data helps them better understand the business which improves the decision making. Adding MP to the equation, takes optimisation to the next level. It provides a logical ‘next’ step that puts insight into action.
To find out more about RAMP, go to http://www.pa.com.au/microsoft/industries/retail_ramp.htm
Blog written by Chris Pennington, Consultant to PA.