One of the critical responsibilities of the financial control team in any organization is to ensure the efficient functioning of the company’s cash flow. To accomplish this, they must source multiple data from various functions/divisions within the organization, analyze this and then identify cost-efficiency avenues and past leakages.
Gauging market demand for the Apparel retail industry is challenging. The success of Stock Keeping Unit (SKUs) sold in this market depends on customer preference (fitting, feel, regional acceptance etc.) and latest trends, which change frequently. Due to these ever-changing trends, large amount of stock remains unsold, impacting retailers’ working capital in the short term (3–6 months) and eventually leading to large liquidation of leftover stock, reducing the overall company’s profitability.
Sourcing & Procurement (S&P) teams generally spend much time collecting data for discussions with their suppliers. Post-data collection, these discussions with suppliers happen based on the performance of the products and their service. The negations with vendors are often Distributive in nature and are often a “Win-Lose” conversation where the party with more Power gets their way. This “Value Claiming” exercise often leads to long-term issues with suppliers and, in the future, impacts businesses.
In my previous article, “Intelligent Demand Forecasting for Inventory Optimisation”, you would have understood the importance of building an intelligent demand forecasting on AWS cloud system to help businesses optimize their inventory, leading to higher working capital and a positive impact on bottom-line and top-line numbers. In this blog, I would like deep dive into one of the effective ways retailers can identify unproductive Stock Keeping Units (SKUs) and understand the impact on a company’s overall profitability and working capital.
Businesses of various sizes, scopes and scales face multiple challenges like Overstocking, causing limited working capital, slow-moving inventory, and stock liquidation, eventually impacting their bottom line number. Some businesses face understocking, leading to loss of sales, customers, bad reviews and an overall decline in top-line numbers. The majority of companies face an issue of both under and overstocking across various Stock Keeping Unit (SKU) types, leading to both top-line and bottom-line impact
Modern NBFCs, both startups & SMBs in India, are leveraging the power of Artificial Intelligence to give their businesses an edge over traditional lending businesses. All operations from application development (mobile apps and websites) for lending to credit risk assessment, digital KYC & loan disbursal, and follow-ups (refer to figure 1) are done through automated/semi-automated systems.
Startups often spend a significant portion of the total available budget on various marketing channels like Television, Digital spending, radio, and paper ads to drive customer visibility and growth. However, often, it is observed that the ROIs for these marketing investments need to be in line with expectations. Additionally, startups need more visibility into data across different marketing channels they invest in and the impact it is creating.
Amazon Redshift is a fully managed data warehouse service provided by AWS. It is widely used for warehousing purposes and storing and analyzing very large amounts of data for business intelligence. It is known for its performance, scalability and security which makes it a suitable choice for enterprises of all volumes. Access Management in AWS Redshift can be understood as the process of monitoring and controlling who can access and perform actions on Redshift resources (clusters, schemas, individual tables or even individual columns/ rows). These accesses are traditionally managed by using concepts of IAM Users and Roles, Redshift Security Groups, Network Access, Database User Management, Encryption, etc.
Ganit’s client is a leading manufacturer of sutures, surgical mesh, and surgical clips appliers that caters to over 2,500+ hospitals and nursing homes across India. They have a highly customized approach of dispensing approximately 1,000 stock-keeping units (SKUs) across their portfolio from nine separate supply locations across the country.
More Retail Ltd. (MRL) is one of India’s top four grocery retailers, with a revenue in the order of several billion dollars. It has a store network of 22 hypermarkets and 624 supermarkets across India, supported by a supply chain of 13 distribution centers, 7 fruits and vegetables collection centers, and 6 staples processing centers.