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Profitability Questionnaire
 

Answering NO to any of these questions almost guarantees you are incurring “hidden costs” which directly reduces profit. A few of the areas impacted by these "hidden costs" include lower customer fill rates, increased customer acquisition costs, increased overstock (and carrying costs), reduced cash flow, reduced warehouse efficiencies, higher freight costs, etc., etc.

1. Does a formal “season” and “catalog by catalog” merchandise assortment plan exist?
2. Is there a planning timeline that encompasses all departments (e.g. marketing, merchandising, inventory, creative, production, etc.) in place?
3. Are there regular in-season and post season reviews of results/issues between marketing, merchandising, creative, inventory management, finance, distribution, call center, etc?
4. Does a pro-forma item level profitability model exist as items are planned or re-listed?
5. Does a formal Merchandise Open-to-Buy plan (purchase budget) exist? Is it controlled?
6. Is all item/SKU “demand” being captured (including items cancelled at time of order)?
7. Is your Distribution Center supplied a pre-season item/SKU forecast? Are they provided weekly “Top 10” backorder updates?
8. Is there a “pre-drop” review to ensure inventory availability, validation of forecasts, etc?
9. Is overstock identified and disposed of “in-season”?
10. Are all inbound and “drop ship” freight charges being invoiced directly to you by the carrier rather than the vendor?

If you answered NO to any of these questions, GJM Associates, Inc. can quickly identify and implement strategies in these areas (and others) to reduce these “hidden costs” and increase your profits.

Please contact us for more info.