Business Benefits Of A Retail BI Solution
There are many business benefits to an integrated analytical infrastructure.
An integrated BI environment ensures:
- Critical planning, analysis, and reporting is faster and more
- Sales planning, which relies on sales volumes, margins, bonuses
and commissions will now take hours instead of days or weeks.
- Changes in one system are reflected in other areas in near real
time. This means that if merchandising plans change, sophisticated
allocations can be used to drive those changes through the retailer’s
operating plans, at all levels.
Sales projections can have a huge impact on the production schedules
and capabilities of suppliers. Using the collaboration capabilities
of a web based BI solution, suppliers and other external stakeholders
can be included in planning and analysis processes.
Store Operations - insights and cost efficiencies
gained from new analysis tools will identify both current flaws
in decision logic and operational effectiveness, as well as future
insight into competitive strategy. For instance, one large retailer
determined found payroll analysis and planning saved the company
$10,000,000 during the first year, based upon saving just one labor
hour per day per store for the entire year. Factor in the size and
number of stores, this single revelation will result in millions
of dollars in cost savings while more accurately deploying resources
at each store.
Corporate - savings and efficiencies within corporate
departments identified using the same analytical platform result
from even the smallest improvement margins – for every dollar
gained in margin, can result in five dollars added to the bottom
With such small margins throughout the retail industry, every dollar
saved adds up. It is not so much the cost of implementing a BI infrastructure,
rather the significantly higher cost of NOT doing so.
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More Detail on Retail BI Strategy, Program & Technology
Index | BI Strategy | Complexities
| Barriers | Retail
IT Systems | BI IT Optimisation
| BI Evolution | Integrated
Retail BI | Implementation
| Business Benefits | RMS