Answering NO to any of these
questions almost guarantees you are incurring “hidden costs” which directly
reduces profit. A few of the areas impacted by these "hidden costs" include
lower customer fill rates, increased customer acquisition costs, increased
overstock (and carrying costs), reduced cash flow, reduced warehouse
efficiencies, higher freight costs, etc., etc.
- Does a formal “season”
and “catalog by catalog” merchandise assortment plan exist?
- Is there a planning
timeline that encompasses all departments (e.g. marketing, merchandising,
inventory, creative, production, etc.) in place?
- Are there regular
in-season and post season reviews of results/issues between marketing,
merchandising, creative, inventory management, finance, distribution, call
- Does a pro-forma item
level profitability model exist as items are planned or re-listed?
- Does a formal
Merchandise Open-to-Buy plan (purchase budget) exist? Is it controlled?
- Is all item/SKU
“demand” being captured (including items cancelled at time of order)?
- Is your Distribution
Center supplied a pre-season item/SKU forecast? Are they provided weekly “Top
10” backorder updates?
- Is there a “pre-drop”
review to ensure inventory availability, validation of forecasts, etc?
- Is overstock
identified and disposed of “in-season”?
- Are all inbound and
“drop ship” freight charges being invoiced directly to you by the carrier
rather than the vendor?
If you answered NO to any of these
questions, GJM Associates, Inc. can quickly identify and implement strategies in
these areas (and others) to reduce these “hidden costs” and increase your
Please contact us for more info.