Retail Industry KPIs that Matter

Transcription

1 Retail Businesses Run Better on NetSuite. Retail Industry KPIs that Matter Sponsored by

2 Results from Businesses Like Yours 360 o Visibility & Actionable Insight Increased 30% - 60% Business Visibility Business Agility 20% - 30% Reporting Time and Resources Reduced 30% - 50% Gross Margin Performance 2% - 5% Financial Management Time to Close Financial Books Reduced 40% - 60% Audit Time Reduced 10% - 40% Accounting Staff Productivity Increased 30% - 50% C. All rights reserved. C. All rights reserved. 1

3 Results from Businesses Like Yours Store Experience Customer Loyalty Sales Growth 3% - 5% Enhanced ecommerce and Web Experience Online Conversions Increased 10% - 35% Cart Abandonment Rate Reduced 10% - 20% Time to Process Online Orders Reduced 30% - 50% Marketing and Campaign Planning Repeat Customer Sales 30% - 60% Customer Visit Frequency 10% - 20% C. All rights reserved. C. All rights reserved. 2

4 Results from Businesses Like Yours Customer Service and Experience Merchandising and Inventory Planning Faster Resolution of Customer Issues 30% - 50% Automated Inventory Markdowns Reduced 20% - 40% Inventory Management Out of Stocks Reduced 5% - 25% IT Support Resource Costs Reduced 30% - 50% IT Management and Resources Cost to Purchase and Maintain Servers Reduction 100% Business Continuity/Disaster Recovery Costs Reduced 50% - 75% IT Resources Re-deployed to ecommerce site development Increased 25% - 50% C. All rights reserved. C. All rights reserved. 3

5 Cloud-Based Business Solutions Suite Delivers Key Performance Improvements Real-time business visibility and end-to-end business management Many firms including those in the retail sector have achieved more efficient and agile business operations by using cloud-based ERP Executive Summary The retail sector has a well-earned reputation as one of the most challenging industries for participants to navigate successfully. Retailers be they traditional brick and mortar companies, online sellers or, often, a combination of the two must manage complex supplier relationships and inventories while also catering to the sometimes mercurial wants and needs of their end customers. For retailers, supply and demand is more than a trite catchphrase. Rather, it encapsulates an ever-shifting and intricate relationship that demands real-time data, accurate forecasting and efficient operations if the retailer is to generate profits in a business characterized by razor-thin margins. In short, retailers truly need a 360-degree view of their business, encompassing suppliers, consumers and the many processes that connect the two. With little room for error, retailers must not only track critical operational metrics closely, they must continually strive to make their processes more efficient and effective. C. All rights reserved. 4

6 Addressing Retail Industry Challenges Aligning business operations to meet these challenges Supplierside Challenges Product availability and pricing: All but the largest of retailers are at the mercy of their suppliers, who can set prices close to retail selling prices and whose products may not always align with changing customer demands. Incoming inventory management: Retailers need to maintain inventory levels and mixtures aligned with the current and forecasted consumer preferences, which aren t always the same as the suppliers preferences and product lines. Average Deal Size Shipping Manager CEO External Systems WAREHOUSE MANAGEMENT INVENTORY MANAGEMENT ERP CORE BUSINESS Reduction in DSOs Customers SRP CUSTOMER MANAEMENT ORDER MANAGEMENT GLOBAL FINANCIAL MANAGEMENT BILLING MANAGEMENT REVENUE MANAGEMENT PROJECT MANAGEMENT CFO RESOURCE MANAGEMENT Sales Rep/ Manager MANUFACTURING TIME & EXPENSE Ecommerce Manager SUPPLY CHAIN MANAGEMENT PROJECT ACCOUNTING Support Manager Vendors Partners Buyer-side Challenges Outgoing inventory management: Retailers must have good visibility into inventory levels and purchasing trends to ensuring that inventories are stocked to meet both current and future demands, while limiting overstocking and forced discounting. Customer satisfaction: In addition to ensuring that they have the right product selection and price points, retailers must work to engender customer loyalty while also increasing the number and value of products each customer buys. Ecommerce operations: As higher percentages of retailers enter the online selling realm, they must deal with everything from cart abandonment rates to rapid and accurate processing of orders and shipments. Unlimited Expansion Intelligent Order Orchestration Revenue Growth C. All rights reserved. C. All rights reserved. 5

7 Business Visibility Business value for company management Increase in 360 o visibility and knowledge of operations 30% - 60% business agility 20% - 30% Reduction in reporting time and resources by 30% - 50% i Siloed applications and data provided an incomplete view of business and customers Errors due to lack of automation and integration between applications Inability to quickly assess and respond to all aspects of a business in response to various customer opportunities due to siloed applications, lack of integration and data latency Different applications required to support different channels impact opportunities Difficulties in getting reports in a timely manner, often days after they are needed IT required to develop custom reports Significantly improved real-time visibility into all aspects of the business, allowing faster strategic decision making and continuous year-over-year improvements Much greater visibility into customer purchases and interests through multiple channels Availability of 360 o view of customers and operations Integrated approach to run business using different sales channels stores, online, etc. Significantly improved ability to scale and support company growth without adding staff Business managers can now run their own reports and analysis much more quickly without depending on IT Real-time drill down to the lowest level of detail increases ability to act in a timely manner Users able to build their own custom reports C. All rights reserved. C. All rights reserved. 6

8 Financial Management (1 of 2) Business value for revenue analysis and management accounts receivables gross margins over time 2% - 5% budgeting, financial planning and forecasting Excessive time required to identify and post collections data Error prone Excel spreadsheet-based operations Lack of ability to monitor product margins due to lack of real-time information, campaigns and analytics Varied sources of information and metrics and lack of integrated planning processes Disparate business solutions made it impossible to tracks sales and do forecasts Inefficient, manually intensive Excel processes Significant increase in accuracy for accounts receivables Automated and timely invoice generation and mailing to customers Integrated POS and credit card solutions Ability to monitor product margins through integrated marketing and campaigns for various channels Integrated EDI capabilities help with getting better wholesale prices Reduction is discounting through capabilities to do better marketing and campaigns Ability to track sales by SKU numbers Integrated ability to do forecasting and analytics C. All rights reserved. C. All rights reserved. 7

9 Financial Management (2 of 2) Business value for accounting department Reduced time to close the financial books 40% - 60% Reduced audit time 10% - 40% Increased accounting staff productivity 30% - 50% Extensive time spent on reconciliations, especially with multi-channel, multi-region and multi-currency Difficulty in translating web-sales related currency between regions lead to errors and time consuming financial consolidation No central repository for the information required to support audits Inefficiencies as a result of manual work and processes Use of spreadsheet based accounting Earlier availability of financial results through faster period-end processes and more accurate reconciliations Ability to do monthly/annual financial book close and analysis due to availability of real-time data Since all the information required for audit is available in NetSuite, companies see significant reduction in audit time required Real-time information and analysis to lowest level of details provides transparency and accuracy for audits Increased efficiency through integrated and automated reconciliations and reporting Support 2-3X company growth with fewer or same accounting staff C. All rights reserved. C. All rights reserved. 8

10 Enhanced Store Experience Business value of integrated and real-time store experience store performance Siloed applications and latent data makes it difficult to have full visibility into store performance and take corrective action Analytics provides ability to monitor real-time store performance vs. plan (by store) to meet revenue goals and sales quotas Identify variances through drill-downs and remedy issues Optimized on-shelf product availability customer loyalty program related sales growth 3% - 5% Lack of efficient way to monitor onshelf availability at different stores Lost sales opportunities and reduced customer satisfaction None or separate customer loyalty solution that is not integrated Lack of integrated customer forms solution or through Excel Real-time access to inventory by store and warehouse helps optimize on-shelf availability Enables much better inventory management to reduce out of stock items and backorders Reduced need for promotions and improved margins Ability to do customer loyalty program from within NetSuite with loyalty cards, customized s campaigns Use of contact forms reduces errors by getting information directly into NetSuite reducing need to duplicate data C. All rights reserved. C. All rights reserved. 9

11 Enhanced ecommerce and Web Experience Business value of integrated ecommerce and back-office solution Increased online conversions with checkout enhancements 10% - 35% Different channels and products required separate systems leading to inefficiencies Lack of integrated shipping systems lead to poor checkout experience checkout experience with integrated shipping information and shopping cart enhancements Integrated back-end allows orders to be directed to correct warehouse and shipping services Reduced cart abandonment rate 10% - 20% Reduced time to process online orders 30% - 50% Lack of complete information to make purchase Lack of complete customer information Complex checkout processes Lack of integrated front-end and back-end systems led to increase in errors, especially as the number of SKUs available online increases Availability of complete purchase information (including inventory, shipping costs, etc.) to make purchase Customer information and cart history easily available to follow-up with automated s Increased sales potential Ability to increase the number of online SKUs without additional resources Reduction in errors even with increase in number of SKUs C. All rights reserved. C. All rights reserved. 10

12 Marketing and Campaign Planning (1 of 2) Business value of integrated cross-channel marketing management repeat customer sales 30% - 60% Difficulty in understanding customer demand and buying patterns Lack of real-time information prevented timely response to customer preferences Access to accurate customer information, demand, sales trends along with analytics Targeted marketing programs and promotional offers customer visit frequency 10% - 20% Lack of integrated solutions Latent data leads to campaigns that are not effective Integrated marketing and campaigns to increase additional transactions/customer Highly targeted promotions based on purchasing history and buying preferences customer loyalty program No loyalty program or separate programs that weren t integrated Lack of integrated customer forms solution or based on Excel Ability to do customer loyalty program from within NetSuite with loyalty cards, customized s campaigns Use of contact forms reduces errors by getting information directly into NetSuite reducing need to duplicate data C. All rights reserved. C. All rights reserved. 11

13 Marketing and Campaign Planning (2 of 2) Business value of integrated cross-channel marketing management customer interactions through mobile apps cross-channel sales and fulfilment On support for mobile apps linked to ecommerce solution Lack of flexibility to do development, customizations and workflow changes easily Lack of integrated cross-channel solutions with a single back-end ERP solution Development of mobile app linked to frontoffice and back-office solution (e.g., to allow customers to interact with salesperson and place an ecommerce order in the store through the mobile app) Targeted marketing programs and promotional offers through mobile app Marketing campaigns for store customers to buy on the web Integrated marketing and campaigns to increase cross-channel sales and fulfilment (i.e., sell online and ship to store, etc.) upsell and cross-sell programs No loyalty program or separate programs that weren t integrated Lack of integrated customer forms solution or based on Excel A 360 o view of customer enables new marketing campaigns Ability to do customer loyalty program from within NetSuite to increase revenues C. All rights reserved. C. All rights reserved. 12

14 Merchandising and Inventory Planning (1 of 2) Business value for customer segmentation and product planning inventory planning and customer management Difficult to monitor real-time status of customer orders and related inventory Inventory availability, utilization and expertise based on gut feel Streamline omnichannel and resources Ongoing monitoring of customer orders, inventory and resource required customer satisfaction Reduced automated inventory markdowns 20% - 40% C. All rights reserved. Lack of integrated solution and data lead to inefficiencies and disgruntled customers Lack of flexibility to make customizations through easy-to-use scripting One integrated customer record that is updated in real-time Faster response to customer inquires and support calls due to the ability to have a 360 o view of customer Ability to use scripting to create rules to automate and minimize unnecessary markdowns Ability to automate discontinued item markdown without need for manual price adjustments through use of scripts Enablement of automated fraud control to flag suspicious orders without manual intervention C. All rights reserved. 13

15 Merchandising and Inventory Planning (2 of 2) Business value for customer segmentation and product planning Reduced out of stocks 5% - 25% inventory management Difficult to monitor real-time status of inventory Lack of integrated front-office and backoffice solution make it not possible to offer merchandizing alternatives Lack of real-time data lead to inefficiencies Limited capability to add and manage SKUs Out of stock items had impact on company performance and customer satisfaction Enables better forecasting due to drill-down capabilities into categories and subcategories Enable detailed orders of price points, size, color, etc. in an automated way Ability to easily substitute alternate brands Inventory orders based on NetSuite data and market trends not gut feel Enables much better inventory management to reduce out of stock items and backorders Reduced need for promotions/discounts and improved margins inventory turns Lack of integrated solution and real-time data, limited ability to get products to customers in a timely manner impacting sales and customer satisfaction Integrated solution helps plan and deliver targeted products across different channels Real-time insights by product and channel help improve customer service C. All rights reserved. C. All rights reserved. 14

16 Customer Service and Customer Experience Business value of integrated front-office and back-office execution customer service and operations Lack of integrated solution and data lead to inefficiencies and disgruntled customers Long response time to customer issues Customer service queries implemented through NetSuite case process Workflow scripting solution help automate and direct request to the appropriate person resolution of customer issues 30% - 50% No good way to track customer questions/issues and their resolutions Single customer record with purchase history and issues helps track and resolve customer satisfaction issues Faster resolution of customer queries and issues such as shipment or returns accuracy of customer transactions Lack of availability of real-time customer data leads to higher percentage of systematic errors Elimination of systematic errors with single customer record customer experience and higher customer satisfaction C. All rights reserved. C. All rights reserved. 15

17 IT Management and Resources Business value for company operations Reduced number of IT support people, IT cost savings of 30% - 50% Eliminated the need and cost to purchase and maintain servers 100% Reduced need for business continuity / disaster recovery solution 50% - 75% IT resources needed to implement, maintain and update on-premises ERP solutions IT resources needed to install and maintain server hardware and software Separate ecommerce and ERP systems Capital expenditure required to acquire and maintain servers for on-premises ERP application Ongoing management and maintenance costs IT resources and infrastructure needed to support business continuity/disaster recovery Implementation is complex and costly Cloud-based solutions eliminate need for internal IT staff to support ERP application, on-premises servers Faster to implement for productive use of ERP solution IT resources re-deployed to ecommerce site development and support No need for IT capital expenses as NetSuite is a cloud delivered solution Greatly reduced management and operational costs Business continuity/disaster recovery are a built-in benefit of the NetSuite SaaS solution NetSuite has redundant data centers to support business suite and data availability at no additional cost to customers C. All rights reserved. C. All rights reserved. 16