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:
4 Measures (Sales, Inventory, Receipts, On Order)
Plan, Actual, Last Year
= 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?
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