Benchmarks: Pick-a-number


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Retail is Detail is the old aphorism. But it has never been truer than now.

I wrote previously about the ‘million dollar’ question and how to identify the real problem as opposed to the symptom. IT really should have been the trillion dollar question. Consider this:

1,000 Stores


X


50,000 SKUs


X


26 Weeks


X


4 Measures (Sales, Inventory, Receipts, On Order)


X


Plan, Actual, Last Year


X


4 Seasons


= 1 trillion numbers


 

That’s a lotta numbers, you’d agree?

I cannot even imagine what a trillion numbers looks like – but there are hidden somewhere on a computer.

The downside of technology is that analysis paralysis is ever easier.

But as the owner/manager of a business (any business, but retail business in this example) the flood of data is overwhelming.

The obvious conclusion: pick the numbers you re going to focus on carefully.

My favourite is GMROI. One number that captures so much. (Check out some benchmarks here.)  

  • What do you use?

  • Why?




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