biretail benefits

8/6/2019 BIRetail Benefits

1/5

Business Benefits

ofBIRetail

Decisions. Powered by Intelligence

www.BIRetail.com

[email protected]


2/5

Missed Sales

Improve Topline & Bottomline


Improve Topline & BottomlineThe ultimate purpose of the business is to prot. Hence a philosophy adopted throughout BIRetail is

the proper measurement and reporting of prot. Every day, BIRetail calculates prots for every sales

transaction. These prot gures are then used throughout the product and reported with other

Turnover, laying emphasis on not just the topline but equally on the bottomline.

Ecient Inventory Holdings

Eective Planning and Tracking

Better use of existing resources

Some of the business benets to using Business Intelligence and, in particular, BIRetail are shown

below. This is a highlight of the main benets and is not meant to be a comprehensive list. Reference is

frequently made to processes rather than reports as the results presented by BIRetail are more than

mere reports the results are arrived at after passing through comprehensive and rigorous algorithms

which utilise powerful Business Intelligence thinking to present results in a suitable format. This

format, which initially looks like a report, is presented in a highly interactive environment which allows

for limitless analysis opportunities.

Sales analyses across various attributes, comparatives across timelines and across promotional periods,

dynamic drill-downs to the lowest granularity, are all standard features of the software. Sell-throughs,

Mark-downs, Discount scheme analysis are pre-congured views with the solution.

Basket AnalysisOne of the processes in BIRetail identies products that sell well together (basket analysis). This

improves product sales by suggesting the display of products on the shop oor to maximise cross

selling of products.

One of the biggest mistakes that a business can make is to have demand for a product but to not

have it available for sale. BIRetail calculates the items that should be in stock but are not. It

identies items that would be selling and encourages the buying teams to correct this oversight.

Customer RetentionWhen competitive makes it so easy to wean your customers away, BIRetail provides a strong yet

exible viewpoint to identify your previously loyal customers who have shown a declining buying

trend. This would directly assist in better CRM techniques to eect customer retention.

Customer Behaviour AnalysisAcross various dimensions, regions and demographics, tracking customer buying preferences

results in evolved decision-making to stock what is selling.

Reduced Direct Marketing Costs

Early detection of Human errors

www.BIRetail.com

[email protected]


3/5

Ordering assistance



BIRetail eliminates the problems associated with inventory management by eciently managing a

retail business inventory. It helps in making the whole Inventory life cycle ecient from initially

ordering goods to placement on the shop oor to nally clearing it from inventory. Some examples of

these processes are as follows:




One of the largest costs in a retail business (after sta and premises) is inventory. Retailers must

ensure that they hold sucient depth and breadth of inventory without holding too much. If they

hold too little they risk losing sales and frustrating their hard earned customers. Hold too much

inventory and there are losses incurred due to higher inventory holding costs (scarce capital that

could be better utilised in the business is used instead to hold unnecessary inventory), obsolescence

of inventory (a new model will replace an older model or the item will go out of fashion) and ageing of

inventory (the long time spent on the shelf make the product look unappealing and undesirable and

the store as an uninteresting place to shop).

Allocation of Inventory between branchesOnce an item has been on the shelves for some time, the stores in the chain will not sell products in

a uniform, consistent and predictable manner. The distribution of Inventory amongst branches is

no longer optimal. The traditional method to solve this problem might involve merely ordering

inventory for the store with fewer inventories. This could result in some stores being left with

inventory they cannot sell in a reasonable period of time. BIRetail utilises the sales pattern of

individual items across all branches to reallocate inventory (balance inventory) between stores.

This is done intelligently suggesting reorders for stores where sensible.

BIRetail will suggest the forward stock cover for each product line utilizing a complex crunching of

a large amount of, often unrelated, data sources. As well as taking into account past performance

of each store, we can use a number of other factors to predict likely future sales, such as theperformance of the manufacturers previous products, weather conditions, time of year [holidays,

religious festivals], marketing spend on launching the product.

Manage the end of a product life cycleMost products suer declining sales after their launch period. BIRetail helps to decide when a

product should be destocked and help in destocking a product whilst minimising write downs. For

example, BIRetail utilises algorithms to identify slowing sales and/or rising inventory levels and

suggests optimal pricing to maximise prots and sell through.

Gross Margin Return on InvestmentA quantitative computation of investment on existing inventory mapped to expected margins, is

statistically used to draw out the varied levels of detailed GMROI statements.



Efficient Inventory Holdings

Most users of BIRetail are able to justify their investment in BIRetail based just on Inventory

management yet this is just a fraction of the capability of the product.

www.BIRetail.com

[email protected]


4/5

Employee analysis



Employees and rent often make up the majority of a retailers costs. BIRetail analyses sales and prots

to improve the performance and deployment of this valuable resource:




Retail organizations tend to detail targets and budgets for product lines, regions, stores, employees,

etc. There is a huge gap in post-operative analysis of the actual yields against the prescribed targets.

Ability to harness such an analysis would vastly improve the budgeting and target specication

process, by bringing in a pragmatic viewpoint. BIRetail works in the background to bring a simplistic

interface to compare targets to actual across various specied dimensions, thus imparting an

enhanced planning tool at the executive level.

Day of week and time of day analysisBy analysing the busiest times and days, sta resources can be allocated at times when they are

most needed.

A detailed analysis allows a comparison to be made of sta at dierent levels of detail and allow for

the rewarding of good sta. Equally, less ecient sta can be identied for further training.

Best performing storesBy calculating individual store performance, the best store can be identied and be encouraged to

spread their magic to other stores in the chain. Similarly, poorly performing stores can have

attention lavished on them to improve their performance and make better use of valuable

management time management will spend less time on the better performing stores.



Effective Planning and Tracking


Reduced Direct Marketing CostsMost businesses have a marketing budget. All businesses will want to make this budget go as far as

possible and produce maximum benets. An example of a way in which BIRetail optimises

marketing budgets is in direct mailing to customers. BIRetail proles customers and identies two

types of customers early adopters (who want the latest fashion or gadget as soon as it comes out

and are not price sensitive) and price sensitive (who are looking for a bargain). Then, suppose a

new phone comes out, the direct marketing budget could be directed to those customers likely to

be most responsive to the marketing i.e. the early adopters. Any mailings to people outside this

customer base are likely to be wasteful. Similarly, when having a promotion, the mailing would be

restricted to the price sensitive customers since they are more likely to want to save money and

take advantage of this opportunity.

www.BIRetail.com

[email protected]


5/5

Highlight items being sold at a loss






The power of Business Intelligence is utilised to eliminate everyday human errors. Examples of errors

highlighted include:

Identify items with negative inventoryperhaps some items are being sold under the wrong SKU number

perhaps the items selling price is wrong.

Items selling at high marginPerhaps, again, the item is priced incorrectly and is not selling at its full potential (or at all) as a

result.




www.BIRetail.com

[email protected]

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