6 seasonal index mistakes you don’t want to make
TRANSCRIPT
Data Profits:Demand Forecasting & Inventory Optimization
Copyright Data Profits 2015
6 Seasonal Index Mistakes You Dont Want to Make
Do you frontload your key seasons or reduce orders because your replenishment system doesnt quite get the job done?
Copyright Data Profits 2015
Do you frontload your key seasons or reduce orders because your replenishment system doesnt quite get the job done?
You might be running into these common seasonality issues that cause retailers big headaches.Copyright Data Profits 2015
Copyright Data Profits 2015Promotions and Clearance
Your demand forecasting or replenishment system doesnt separate off-price sales from regular-price sales.
Copyright Data Profits 2015Promotions and Clearance
Your demand forecasting or replenishment system doesnt separate off-price sales from regular-price sales.
This causes your system to see false seasonality due to ads or overstock markdowns.
Copyright Data Profits 2015Promotions and Clearance
Copyright Data Profits 2015Promotions and ClearanceSales for Item A
Copyright Data Profits 2015Promotions and ClearanceSales for Item ADo you really want to forecast those promo sales?
Copyright Data Profits 2015Promotions and ClearanceSales for Item AOr forecast without promo?
Copyright Data Profits 2015Lost Sales
The demand forecast does not include lost sales in the calculation. Copyright Data Profits 2015Lost Sales
Copyright Data Profits 2015Lost Sales
Copyright Data Profits 2015Lost Sales
Copyright Data Profits 2015Moving Holidays
Your seasonal indexes rely on sales occurring in the same week every year.
Copyright Data Profits 2015Moving Holidays
Your seasonal indexes rely on sales occurring in the same week every year.
What happens when Easter moves every year?Copyright Data Profits 2015Moving Holidays
Copyright Data Profits 2015Moving Holidays
MarchApril
Copyright Data Profits 2015Moving Holidays
MarchApril
Copyright Data Profits 2015Moving Holidays
MarchApril
Copyright Data Profits 2015Moving Holidays
MarchApril
Copyright Data Profits 2015Moving Holidays
MarchApril
Copyright Data Profits 2015Moving Holidays
MarchApril
Your system cant catch me!
Copyright Data Profits 2015Changing Weather Patterns
Snow shovels and ice melt only sell when it starts to snow.
Copyright Data Profits 2015Changing Weather Patterns
Snow shovels and ice melt only sell when it starts to snow.
If your system is relying on last year's sales, you may miss the early snowstorm or load up for snow that never comes.Copyright Data Profits 2015Changing Weather Patterns
Copyright Data Profits 2015
Changing Weather Patterns
Copyright Data Profits 2015
Changing Weather Patterns
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Changing Weather Patterns
Copyright Data Profits 2015
Changing Weather Patterns
Copyright Data Profits 2015
Changing Weather Patterns
Too soon??
Copyright Data Profits 2015Forecast Smoothing
Some demand forecasting systems try to smooth forecasts into pretty seasonal curves.
Copyright Data Profits 2015Forecast Smoothing
Some demand forecasting systems try to smooth forecasts into pretty seasonal curves.
Smoothing takes some of the in-season sales and redistributes them to out-of-season weeks. Copyright Data Profits 2015Forecast Smoothing
Copyright Data Profits 2015Forecast Smoothing
Copyright Data Profits 2015Forecast Smoothing
Copyright Data Profits 2015Forecast SmoothingDo you want to buy beach towels in January?
Copyright Data Profits 2015Forecast SmoothingDo you want to buy beach towels in January?Are you going to buy enough in June?
Copyright Data Profits 2015Too Broad
Copyright Data Profits 2015Too BroadThe same seasonal index isapplied tomany locations and products.
Copyright Data Profits 2015Too BroadThe same seasonal index isapplied tomany locations and products.
Unfortunately, this leaves Texas and Wisconsin stores with snow shovels at the same time.
Copyright Data Profits 2015Too Broad
Copyright Data Profits 2015Too Broad
Copyright Data Profits 2015Too Broad
Copyright Data Profits 2015Too Broad
Why do I have these?
Copyright Data Profits 2015Too Broad
I need more!
Fixing even one of these issues could increase your GMROI, lower your average inventory and make your customers happier.
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Fixing even one of these issues could increase your GMROI, lower your average inventory and make your customers happier.
Unfortunately, many demand forecasting systems make correcting these issues difficult.
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At Data Profits we can help you fix your seasonal indexes without all the headaches.
Copyright Data Profits 2015
At Data Profits we can help you fix your seasonal indexes without all the headaches.
user-friendly interface easy-to-read graphs customizable forecast alerts easier demand forecastingCopyright Data Profits 2015
Let us help you Tighten the Links in your Chain with better seasonal indexes!
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