Getting sourcing decisions right first time every time is not a luxury but a necessity in the unpredictable, fast moving retail industry. But it is incredibly hard to make the right buying decisions because there are so many variables – cost, lead time, response to consumer trends, likelihood of mark-down, variability of demand and forecast accuracy.
PA has developed a sophisticated retail model which evaluates the profitability of different sourcing decisions. It incorporates factors such as forecast accuracy, sales volatility and mark-down policies, as well as the buying fundamentals of product cost and lead time.
Our user-friendly model can help buyers and merchandisers understand more clearly the impact of being able to re-order later in a season or a product's life cycle, and how products should be sourced and re-ordered depending on their characteristics. The model almost instantly shows the results of a variety of different sourcing options, and can be tested against historical results in actual known situations, and against buyers and merchandisers’ own experience and instinct.
When sales and sourcing data is put into the model, current and planned sourcing decisions can be fully weighed up against many factors to improve the performance of buying and merchandising teams, while maintaining their motivation and passion for retail.
Sales and marketing
Logistics outsourcing
Enhancing the performance of retail IT
