What are the most common challenges in merchandise performance evaluation?

Common challenges in merchandise performance evaluation include data accuracy and reliability, especially in tracking inventory and sales. Another challenge is the dynamic nature of consumer preferences, making it crucial to adapt quickly. Balancing various performance metrics like sales volume, profitability, and inventory turnover can be complex. External factors like economic conditions and market trends also impact evaluation. Additionally, maintaining consistency across different product categories and locations poses a challenge. Lastly, ensuring alignment between performance evaluation and strategic goals is vital for effective decision-making.

We need to check and validate data regularly to ensure data quality. Do not assume the data quality is high all the time. Once, I was tasked to assess KA inventory (store level) by utilizing data extracted directly from B2B system. At first, I assumed the data is highly reliable. However, I found some anomaly in the data, Next, I contacted my KA partner to confirm this. Soon we found that data from all stores is not collected and compiled completely into main database due to technical issues.

You have to consider the “hidden” paper shrink depending on what category one is reporting about COS v. Perimeter varies so greatly. Knowledge is key to the reporter with regard to that. For example ingredients v. sold products, which is rampant in Deli, Meat and Bakery.

?? I run on a schedule for quarters and annual presentations, in addition to period close reports. Using the IRI drop dates for p close. Anything on top of that is an ad-hoc based on the requesters needs.

We need to interpret data not only from company's perspectives, but also from our partners perspectives. For example, from our company view (FMCG), we might see that high inventory level at store will benefit us in the form of less risk of stock out. But if we take a look from partner's view, high stock to sales ratio will damage their retail KPIs (inventory effectiveness, working capital et cetera). Thus, we need to have a close discussion with our partner to be on the same ground and agree to align both views.

Making reports fun and user friendly is key, and being willing to educate! People don’t want eye charts, they need to be able to digest the data. Providing a recap synopsis of key insights as well.

Fun, user friendly and on point! Who’s the audience ??♀? know your audience and develop it to their needs. And are the questions being addressed that need be? Are you satisfying their needs, your end customer? Evaluate and reevaluate and then get an unbiased 3rd opinion.

Relying solely on traditional metrics for inventory management is no longer provide competitive advantage. Companies need to turn to methods like the 360-degree feedback system. This involves gathering feedback from various sources (customers, suppliers, internal teams, and competitors) via surveys, interviews, and social media. By implementing this, companies will gain valuable insights into trends, inventory levels, product assortment, logistics processes, and customer preferences. And by leveraging this approach, businesses can make smarter decisions and drive a sustainable growth in the future.

Merchandise performance evaluation faces numerous common challenges. * Accurately measuring and attributing sales to specific products in omnichannel retail environments * Balancing inventory management to meet demand fluctuations effectively * Continually optimizing pricing strategies for competitiveness and profitability * Adapting to rapidly changing consumer preferences and market trends * Analyzing data from various sources for meaningful insights * Utilizing sophisticated analytics tools and expertise for data analysis * Ensuring alignment between merchandise performance metrics and business goals * Integrating technology, data-driven insights, and strategic decision-making for successful evaluation

Knowledge is key. If you’re running reports for Meat: do you know what a primal is? Do you know how many wings are in the frozen box to Deli? Or whole chickens? Or what toppings go on garlic bread… or muffins? Don’t be afraid to raise your hand and ask questions. And get trained.