Spring 2019 - Inside Outdoor Magazine

Tech Savvy Inside Outdoor | SPRING 2019 45 potential orders – you can reduce split shipments, stockouts, markdowns and shipping costs all at the same time. It can have a fairly significant impact on revenue and margin. Breaking Down the ROI You are also probably wondering what the impact will be on your bot- tom line by using a predictive analysis platform to streamline inventory man- agement. Celect says that its custom- ers see an average revenue increase of about 10 percent. We asked Andrews to break down the ROI of using this type of solution. As he explained, there are both imme- diate and long term benefits. “From a planning perspective, you may be several months out from when a product is actually going to hit the store,” said Andrews. “So right now, you may be trying to decide what your assortment is going to look like in Spring 2020.” It’s a complicated process, and one that involves analyzing many different components. For instance, should you be looking more into men’s boots, women’s shoes or children’s apparel? And how much should you buy? 8.0% Ways Advanced Analytics Could Help Respondents Sell-through More Products at Full Price, Among U.S. Retailers Source: Coresight Research; Celect How Much Stock to Buy Planning Promotional Schedules and Understanding the Best Products to Mark Down Types of Products to Buy Decisions on Product Replenishment Within Season Allocating Stock to Individual Stores/Distribution Centers/Channels Not Seeing Advanced Analytics as Helpful Deciding Where to Fulfill Online Orders From 43.5% 36.0% 34.0% 30.0% 21.0% 14.0% 12.5% Print Advertisi ng Broadcast Ad vertising Email Campaigns 1 3.2% 10.5 % 1 3.2% 15.8% 39.5% 26.3% Growth in Clo thing Sales and Decline in Utilization Source: Euromonitor; World Bank 100 2000 2005 2010 2015 110 120 130 140 150 160 170 180 190 200 -50bn units (2000) >100bn units (2015) 2x W orld GDP INDEX 10 0 IN 2000 NUMBER OF TIMES ITEM IS WORN Cl othing Sales Clothing Utilization