ROI E2 - Why Focussing on the Wrong Metrics is Hurting Retailers and How to Solve it

During this second episode of the Return On Inventory podcast, Dr Alan Barnard and Jasper Zeelenberg provide you with the framework for evaluating and choosing the right metrics as a retail organisation.

Expect actionable takeaways, hilarious (and insightful) anecdotes and expert knowledge about all the key metrics that make up a retailer's profitability.

Timestamps

• (0:00) Introduction
• (2:23) The 3 criteria for evaluating the value of a metric
• (8:02) Why really good metrics are often ratio’s
• (12:07) How to calculate true profitability
• (15:08) En example for when increasing costs in the short term can deliver great results in the long term
• (16:50) How to (actually) audit your metrics
• (19:25) On-shelf availability (OSA)
• (22:10) Average rate of sale
• (23:26) How metrics of averages lead to errors
• (26:22) Initial markup (IMU)
• (28:52) Cost per unit shipped
• (30:38) How to optimise decisions for the business as a whole
• (33:15) Why individuals’ good intentions may come into conflict with business results
• (38:00) Everything to know about supply and demand lead times
• (48:38) Quick wins and key takeaways
  

About the Return On Inventory Podcast

Through interviews, AMAs, and invite-only events, we give you a sneak peek into the data-backed insights we are executing for the fastest-growing retail brands in the world.

This podcast mostly covers the fashion & sporting goods industries, but there's something for anyone working in a strategic role today. Feel free to send ideas, feedback, or hello's to [email protected].