Removing the Risk, Increasing the Payoff in Your Omniretail Inventory.
No Risk, No Reward?
Enthusiastic investors and gamblers have one thing in common: they want to win BIG. However, trying to win big requires greater risk. With a higher risk, the chances of losing are also higher. Both the investor and the gambler dream of winning big, but often want to find ways to minimize the risk of losing.
In business, the same is true. We often want to invest as little time and resources as possible to find the best solutions and payoffs. This is especially true for retailers who cannot afford to risk much with the current state of the retail industry. What if retailers could find solutions that helped them maximize profit with less effort? Better yet, what if there was a solution that allowed retailers to see just what kind of ROI they could expect with little to no risk?
If you’re a retail executive, you’ve likely searched for low risk/high reward solutions yourself. 4R Systems has created a low-risk process to help retailers discover just how much profit improvement they can gain before making a long-term commitment. This would be like betting on a horse race with inside knowledge of who the winner would be and how much your bets will earn before the race even begins. Similarly, it is like an investor knowing exactly which stocks to buy or sell each day to maximize returns before the stock exchange is even open.
We call it the Value Creator Suite.
Most retail tech companies offer sales pitches with lofty promises and ambiguous results at best. Adding in all the contemporary industry buzz words only further convolutes the message, making it even more challenging for retailers to find the best solutions. Value Creator is a four-step process that helps retailers clearly see how much profit can be gained as well as what they can expect from partnering with 4R Systems.
Value Creator Suite Process
The first step of the process is called Inventory Benchmarking. The Inventory Benchmark has two main purposes:
- It helps us determine if the potential benefit the client will see from our solution
- Shows the client what they are doing well and if the cost of doing business would exceed the benefit of service
Participating in the Inventory Benchmark is simple for the retailer and 4R performs it quickly. It also offers a straightforward analysis to see if partnering is in the best interest of both parties.
Inventory Productivity Analysis
When all goes well with step one, the retailer moves on to step two, which is called Inventory Productivity Analysis (IPA). During this stage, 4R will work closely with the retailer to build models using existing location-specific data. In a matter of a few weeks, retailers understand the results would be gained by implementing 4R’s solutions. 4R then shares impactful insights into the retailer’s business. It clearly shows just how the retailer could improve profit from inventory improvements. This is also the stage where the retailer can learn their estimated ROI in advance.
Once the IPA is complete, the next phase would be to pilot 4R’s solutions with a portion of the retailer’s business. It’s typical that approximately 20-25% of the store locations would be tested over a few months. Results from the test stores would be compared to the control stores to see exactly where profit improvements can be made.
After the pilot has been successful, the next and final step would be a complete solution rollout. This would involve deploying the new 4R solution in each store. Implementation at this point is quite simple since much of the work is already in place from the previous steps. The 4R team works closely with clients to deliver weekly results and continuous improvements over time. In all phases of 4R delivery, retail clients maintain complete control of all decisions and can override the solution if they wish.
Every client and prospect who has taken advantage of the Value Creator Suite has found it to be a valuable exercise because the results are quantifiable. It provides a deep level of insight into how the retailer can improve in many areas, including inventory reduction, profit maximization, and service level increases. However, not every client needs to undergo each step.
Value Creator Suite is more of an adaptable framework than a series of methodical steps that are contingent on each other. Some retailers find they can go right from Inventory Benchmarking to implementation, while others like to test each phase and analyze the results carefully. Regardless, the results are clearly outlined throughout each phase with transparency and honesty.
Ready to Move Forward?
We are positioned to help retailers grow their business. Fill out the form below to set up a free consultation call and learn more about the Value Creator Suite and how it can clarify profit improvement.