Fashion goods manufacturers reach consumers through retail outlets.
They find significant erosion of value at the Point of
Sale.
Symptoms
-
Value loss on of liquidation of slow moving stocks at retail is
over 15%
-
Only 60% of the goods are sold at full price.
-
The average discount for the 40% of goods is 40%.
-
Lost sales on account of unavailability is estimated higher than
10% even though it is not recorded.
-
Only 90% line fill rates in retail shelves.
-
20%-30% lost sales in many SKUs because of the unavailability of
the SKU.
-
Cash blocked
-
2-3 months of cash is blocked in inventories
Underlying Challenges
The answers to these fundamental questions provide simple solutions
to exponential profits and sustainable growth for fashion goods
manufacturers:
-
Forecasts have to be made many months in advance. How can we ever
get it right? Is there a method to manage the loss?
-
Manufacturing process involves multiple companies. Each of them is
focused on their local efficiency. Is there a way to create a
win-win relationship to manage the overall loss at the Point of
Sale?
-
The focus is to push goods to the retail points to provide customer
visibility. How do you know which products will sell at which
outlets? Are you losing out because the products are in the wrong
store?
-
Customers are walking out because the color she wanted or the size
she wanted is not available. Is there a way to satisfy a customer
who is walking out?
Our offer
We promise to deliver:
-
50% increase in your inventory turns.
-
10% increase in your Gross Margins.
