Learn how to maximize sales by following these steps to build an effective nearing out-of-stock report.
Step 1: Gather Your Sell-Through Data
Portals, emailed reports, and EDIs – oh my! In the dynamic landscape of wholesale, every retailer operates with a unique set of data protocols that vastly differ. As a seasoned professional in wholesale, your success hinges on your ability to efficiently gather and interpret data from each of your retail partners. Yet, amidst the myriad of data streams and formats, ensuring optimal reporting practices can be a daunting task.
Unsure if your current reporting process is delivering optimal results? Enter SKYPAD – Your trusted ally in navigating the complexities of data management and analytics. Our team of experts stands ready to assist you! Feel free to reach out to our data experts at SKYPAD via email at: info@skyitgroup.com. Alternatively, you can opt to streamline your reporting process with reports from our retail partners: Saks Fifth Avenue, Saks Off Fifth, NMG, Nordstrom, and Cos Bar.
Expert Recommendation: Secure organizational efficiency by saving files weekly to a shared folder with your team, labeling each folder by the relevant Saturday date corresponding to the captured sales data. This keeps your team organized and helps track both pending and received data.
Step 2: Consolidate Your Sell-Through Data
Now that you have collected data from each retailer, the next challenge is consolidating this information into a cohesive report. Start by identifying the respective sources for the following data points in each report:
· Product Information (e.g., UPC, style, color, size)
· Door Information (e.g., account or store level)
· Metrics (sales units, sales dollars, on-hand units, and on-hand dollars)
Once these sources are identified, create a consolidated report incoporating data from all retailers into a single table. Sounds manual and labor intensive? We think so too! That’s where SKYPAD comes in handy – it automatically collects and aligns data for brands.
If you currently have SKYPAD, contact our analyst squad to set up a consolidated report for your retailer partners.
Expert Recommendation: Reach out to SKYPAD for complimentary training or brush up on your Excel skills using Power Query.
Step 3: Calculate Weeks of Supply
In your consolidated report, add columns for "Weeks of Supply," "Average Sales," and "Weeks On Floor." These additions will be helpful in Step 4 for parameter definition. At SKYPAD, we calculate "Weeks of Supply" automatically using the following formulas:
· Weeks of Supply: On Hand / Average Sales
· Average Sales: Sales / Weeks On Floor
· Weeks On Floor: The number of weeks with On Hand > 0 or Sales ≠ 0
Expert Recommendation: In your data file, keep these columns as placeholders with the formulas pre-filled. This will save you time and effort of typing the formula each week.
Step 4: Define Your Parameters
Each brand's out-of-stock threshold will vary. To determine the optimal stock levels, ST% (stock turnover percentage), and sales figures for reporting, analyze a few months of sales data. Additionally, eliminate styles that are no longer relevant or selling to focus on the top performing best sellers. Define the following to get started:
· Stock levels should be between _ and _ (e.g., 0 and 15)
· ST% STD should be above _ (e.g., 8%)
· Weeks of Supply should be less than _ (e.g., 5)
Once defined, filter your report to see which styles are nearing out of stock.
Expert Recommendation: Use a combination of IF, AND, OR functions in Excel. Or let SKYPAD create the report for your brand!
Step 5: Enhance Reporting with Shipments, On Order, and ATS Data
Integrating Shipments, On Order, and ATS data into your report allows you to quickly see which styles can be re-ordered by filtering those that have been ordered or shipped. Contact your SKYPAD representative today to load this data into your brand's application.