In the past 16 years I have spoken with a variety of leading retailers. Some had good data, others great processes, some with well organized teams, all with various operational efficiency. In their own way, each of these retailers are successful, but they all have potential for additional growth and profit opportunities. Profit amplification is the solution that enables retailers to best utilize their data, people and process to increase growth and improve profits.
I’m often told by our customers that they’re surprised they didn’t start using a profit amplification solution sooner. I have to remind them that retail is a complex system and it can be hard to see the forest for the trees. Profit amplification is a journey that begins with as many questions as it does answers.
The first step is to ask how utilizing a profit amplification solution can help their business grow?
Profit amplification will allow retailers to do more with their current resources, allowing them to understand where to focus and easily find valuable opportunities.
By using the profit amplification solution to analyse the data they already have, anomalous patterns are identified, not easily seen in spreadsheets. While traditional analysis methods can yield improvements, they often fail to identify all the anomalies. It’s common for profit amplification solutions to identify new patterns to pinpoint areas of high shrink, waste, damage or margin erosion. Correcting these issues can quickly lead to increased profits and growth opportunities continuously.
Increasing efficiency and effectiveness is done by using a broad range of data to pinpoint opportunities. Once the opportunities are identified the automated profit amplification system ranks and prioritizes them based on the impact they have on profitability growth. Then, best practice solutions are used to correct the inefficiency and grow profits, while maintaining the retailer’s culture on how to solve these opportunities and turn them into growth.
By adding profit amplification actions to existing processes retailers will be able to find anomalies in their business. They should be able to check if these anomalies have a direct impact on shrink, damage, wasted, and margin erosion; and then identify the best practices in the organization that will have direct impact on profit improvement. When non-compliance is identified, these best practices must be a top priority when integrated into audits, training and general awareness activities.
Improving these key areas will build process capabilities for sustainable performance improvement and profit growth. Profit amplification is the solution that enables retailers to best utilize their data, people and process to increase growth and improve profits.