Data analysis in the Retail sector how to effectively manage the sales network

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  • October 6, 2019
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The retail industry is characterized by a high degree of fragmentation and, consequently, a large number of sources of data on the condition of the company, customers or the immediate environment of the enterprise. The question arises how to integrate dispersed data, process and make the most of it in company management. The answer is Business Intelligence.
Nowadays, a conscious and development-oriented retail network manager is not satisfied with a monthly summary with information about what and for how much has been sold. Retailers support a huge amount of data on many elements of a company’s business – from the supply chain to a single sales operation in a specific store.
It’s therefore hard to keep track of the data, not to mention the fact that it’s not easy to assess which data is relevant in the decision-making process. Business Intelligence systems dedicated to the retail industry allow reporting, analysis and monitoring of large amounts of data, which entails a number of business benefits, and above all, maximizing the value of information.
What does Business Intelligence give to the retail industry?
Retailers can use Business Intelligence solutions in many ways, increasing the effectiveness and quality of their business.
Sales and profitability analyses
Product sales analysis allows you to constantly monitor data at points of sale, discover trends, track product demand and optimise your merchandising strategy.
Analyses of operations taking place in stores
Store managers can quickly and easily obtain personalized sales or marketing reports, scorecards and shop comparison charts, while ensuring that the data is always up to date. Unified system architecture allows you to monitor shop performance and increase the effectiveness of sales, promotion, marketing, operations and budgeting management.
The cooperation with the world’s leading manufacturer of innovative audio, video, telecommunication and IT equipment for the mass market and professional customers has resulted in the creation of a system counting customer conversion. Now the managers know how many people entering the store actually make a purchase.
Customer analyses
BI systems dedicated to the Retail industry help monitor the customer’s life cycle and profitability. Tracking the history of contractors’ interactions with the company and their credit habits allows to identify the most profitable ones as well as those who may be insolvent. Additional features allow you to identify trends in consumer behavior, strategically plan marketing campaigns, attract, retain and segment customers. Analysis of the needs of customers and their life cycles allows to effectively build long-term relationships with them and provide them with the products and services they need.
Commodity management
Business Intelligence for Retail enables you to deliver the right products to the right stores at the right time. Flexible analytical capabilities allow you to compare product performance and evaluate the effectiveness of promotions across items, categories, locations and vendors. Analysts can monitor and forecast all aspects of the merchandising process. In addition, the system enables the improvement of logistics, reduction of goods shortages and improvement of the inventory.
How does it work? During the implementation of the project by BI in ATLANTIC, more than 1000 product colours were found in the database. After eliminating most of the problems, this number was reduced to less than 80 items.
Inventory management
The ability to monitor inventory helps you avoid product losses due to changing economies, technologies or consumer conditions. Simply include a report to instantly see which products are selling fast, where they are needed and when they can be delivered, and identify effective response strategies such as discounts and promotions. Warehouse movement analyses also help to reduce warehousing costs. By creating inventory turnover forecasts, you can not only save money, but also optimize delivery cycles based on the forecasts so that the volume and frequency of transport is as efficient as possible. Thanks to the system, it is also possible to track inventory throughout the entire order, delivery and warehouse process. The solution makes it easier for managers to quickly create daily or weekly reports – also at the product level.
During the implementation of BI in a distribution company that distributes selected brands of products in the segments of sports, health nutrition and sports wear, the difficulty in controlling inventory levels or inventory was the fact that partner stores had different operating systems and different ways of entering data. This solution was solved by introducing a special mapping algorithm, which allows to match the same products from different databases, mainly based on

Data analysis in the Retail sector how to effectively manage the sales network
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