RETAIL PERFORMANCE MANAGEMENT
If you don’t know where you’re going, you’ll
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probably land somewhere…
A tale of two friends
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Hardy: In-the-midst-of-a-turnaround retailer
General merchandiser No single view of business
- No common method of analysis across operations managers
• 400+ stores
Inability to pin-point source of exceptions and
• 4 countries understand relationship between customer groups,
products, promotions and multi-channels
• 2500 employees
Specific areas of underperformance
• Organization coming out of a
Operations
difficult financial phase Out-of-stock
Sales and margin
Inventory levels
• New management in place Resource allocation
Expenditures
• Wishing to set systems to
Purchasing
track revenue and profit Gross margin
initiatives Localized assortments
Assortment by category
• Price-led competition is
Merchandising
rampant Customer focused merchandising
Cross merchandising
• Business led by sourcing and Seasonal plan
supply chain efficiency
Marketing
Wallet share
Promotion results
Promotion impact
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Reporting ‘Spaghetti’
Merchandising
Financial
Sales
DATA
Marketing
Purchasing
Logistics
Multiple Reporting Tools
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Eric: Mature-market-leader-seeking-sustained-growth
Retailing giant
Challenges
• More than 11,000 stores
under 24 banners
Dissemination of strategy
• Multi-country operations
and best practices
• Highly competitive
environment
Gaps between strategy • Different markets growing at
formulation and execution different rates
• Some markets in stagnation
How could best practices phases, some markets are in
of existing markets be new territories
leveraged in new markets
Store-centric strategies and initiatives
- What works and where
- Which store types respond best to what kind of initiatives
- What elements need to be worked upon to ‘course correct’
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Curiouser and Curiouser
so what did my friends do…
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Hardy – what did he do?
Steps taken
• Timely
actionable
metrics
– linked business
functions with
corporate
strategies
• Ability to
benchmark
• Monitor key
Source: DMReview: The Power of Metrics metrics at
various levels;
Actual vs. plan
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…captured ‘knowledge’ and not just data
• From a technical
infrastructure
Merchandising
perspective:
Sales
Datawarehouse Financial – Architecturally
Integrated system
Purchasing – Ease of access and use
Marketing
– Flexibility
Single reporting
Logistics solution for all users
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A few examples
Metrics Views
Scorecards
Dashboards
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Eric – what did he do?
Provided a framework to Identified effective performance
improve effective measures
communication
of business strategies Set metrics to evaluate the success
of the initiative
to all stakeholders
Interpret equitably
Leveraged business methods like BSc,
benchmarking & comparison
Track initiatives
Launched vehicle to deliver key messages
Ensured Ops managers put energies in
right areas to make initiative work
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Using technology for performance management
• The core technology supports
four processes
1. Strategy – set goals and
metrics
2. Plan – planning and
budgeting both financial
and operational
3. Monitor and analyze – pull
in actuals and compare to
plan
4. Take corrective action or
adjust
• Two broad categories of
technologies
- Analytics infrastructure,
such as datawarehousing
- Related analytic and
operational applications
Source: BPM Standards Group v4.0
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Scorecarding
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Analyze that!
And turn your retail data into revenues
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Thank you
Atul Jalan
CEO, Manthan Systems
40/4 Lavelle Road
Bangalore, India
P: +91 80 2299 0585
F: +91 80 2299 0586
atul.jalan@manthansystems.com
www.manthansystems.com
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