Quantum Retail: Top 10 Ways to Pull Profit from Allocation
by Deepak Sharma on Saturday, August 21, 2010
Quantum Retail’s retail insights blog, The Profit Lab recently covered 10 different strategies to consider in the process of executing allocations. Allocation is one of the most often overlooked areas to optimize retail and gain profit margin. Definitely a MUST READ for every retailer.
Introduction: Why allocation is your best opportunity to improve revenue and profit
Strategy #1: Understand your demand to achieve better allocations
Strategy #2: Learn the unique behavior of each store before clustering it
Strategy #3: Make time to analyze your assumptions for like products
Strategy #4: Consider product life when creating allocations
Strategy #5: Overcome limitations to forecasting by using better data
Strategy #6: Update plans with changes in customer demand as frequently as possible
Strategy #7: Test the opportunity in a second allocation shot in short life merchandise
Strategy #8: Create product strategies to understand each store’s true need
Strategy #9: Go beyond sales and inventory units to factor in profitability and other metrics
Strategy #10: Use constraints that minimize work and maximize results
You can even download the complete series in one PDF here.