How retail software and business intelligence can improve the profits of your business.

Stephen Connolly • • • •

Family Business:

CEO, Ordorite Software Solutions BENG Digital and Software Engineering 2002. Over 16 years Industry Experience Here today to talk to you about Business Intelligence

ORDORITE provides cloud-based enterprise management systems for retail firms that operate a ‘to order’ business model.

Retail sectors such as: Furniture, Lighting, Tiles, Stoves, Carpets, Gardening Utensils, Toys and other ‘to order’ type sectors.

What is Business intelligence? Business intelligence usually refers to computer software and other tools that collect all sorts of complex business data for a company and condense it into reports.

Business intelligence at its rawest form  Everyone knows there best store or selling platform(ecommerce, ebay or amazon)  Everyone knows there best salesperson  Everyone knows there best seller  You may know your best customer demographic Collecting data is great and really important. • Its how you use it, that effects the performance of your business.

How Business intelligence reporting effects the bottom line  

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Get Fast answers to critical questions Extract crucial facts from large amounts of data at rapid speeds Align business activities with corporate strategy (efficiency and streamline) Have people and departments focused on desired strategic objectives Empower employees The more people that have access to the data, encourage data driven informed decisions that impact the company’s bottom line Manage inventory better Improve stock turn, avoid stock outs, know what to order and when Gain insights into customers Learn customer habits and maintaining valuable customers Identify areas for cost saving Cutting excessive inventory, what to order and when to order

Replenishment Forecasting Reporting:

The use of analytics as a predictive tool has produced some impressive forecasting power for businesses.

A recent survey revealed 86% report a return on Investment for their predictive forecasting.

Benefits of replenishment forecasting:

1. Reduces Holding Stock Increase Cash flow  Control inventory and free up working capital  Example: A customer had a holding stock of £2,000,000 By using replenishment reporting and not over-stocking the customer managed to reduce their holding stock to £1,800,000.  This was a saving of 20% in holding stock and a cash flow injection of £200,000

Benefits of replenishment forecasting: Reduces Stock outs   

Replenishment reporting not only reduces over stocking but has the reverse effects and stops stock-outs. The global average out-of-stocks is 8.3% and between 70-90% of these stock outs is caused by defective replenishment practices, this equates to a 4% loss in sales. By calculating a minimum holding stock and a warning date calculated to remind the user to order under-stock items thus reducing this figure significantly.

Eliminates replenishment of non-sellers and discontinued items

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Replenishing only items that sell again reduces holding stock and eliminates mistakes Reduces waste and keeps fresh stock

Efficiency and Holding Stock Reduced man hours 

Having a report that quickly notifies you of stock replenishment information, reduces manual counts on sales, stock, and reviewing historically sales Reduce Holding costs & space

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Holding inventory has costs, whether this is utilities for the space or labour costs. More space – by maintaining low levels of products allows you to have the space to expand the range of products you sell

So by using effective forecasting metrics, improving the supply chain management and more efficient inventory control you can dramatically improve your business performance

Current sales Vs previous sales trends to predict future decisions

So by looking at our current sales over Leadtime + Order Frequency And calculating the % growth of the category we can predict what quantity we will need for the future period Analyse current stock levels, or order levels with your data to know what to order and when.

Replenishment attributes and Algorithms So by calculating our sales we know based on these trends we can calculate when we deplete our stock and our inbound stock and even suggest the date you should order your replenishment stock

Stock-Out, Stock-Out, Stock-Out STOCK-OUT reporting Along with reports to control the inventory we purchase we also need to see where it is

As the saying goes “STOCK-OUTS CAUSE WALKOUTS” • Retailers find stock-outs a huge annoyance as it is also to customers, but they live with the gaps in their inventory, they tell themselves, when a customer can’t find the products they are after they’ll usually substitute similar items for the missing ones. • But in actual fact depending on the product category up to 25% would continue to shop but NOT buy a similar product, and up to 43% will actually go to another store to buy the product. • Those abandoned purchases can equate to a 4% loss in sales. • Roughly 72% were caused by poor replenishment practices and the remaining 28% to mismanaged shelf or floor space. • Fixing these stock-outs do require new IT solutions and a systemic change on how retailers manage their supply chain.

Stock-Out, Stock-Out, Stock-Out

Reducing stock-outs does not have to be difficult and expensive, but the cost of assuming that little can be done – or that it doesn’t really mattermay be higher in both pounds and customer loyalty. In business with thin margins, can you afford to ignore bare shelf space? So with the replenishment forecasting correcting poor ordering practices, there is also reporting tools to show products on the shop floor that quickly spot stock-outs. We expect to see a growth in sales between 2-4% just by managing stockouts

Ez living Case Study: Prior to adopting Ordorite, EZ Living encountered some of the issues when trying to expand. Due to their rapid expansion (from 2 – 10 stores and ecommerce growth) EZ Living needed live information across all stores and departments such as sales, delivery, order changes, stock levels, financials and other. Ordorite provided EZ Living with a comprehensive system which increased and improved productivity, operational efficiency, decision making and cash flow during its continued expansion.

Liam Dilleen, Director, Ez Living, Testimonial: “We needed to systemise our business and get one full integrated system to support our expansion. Ordorite provided this to us, we have worked closely with Ordorite over the years to adapt ordorite as our business grew, Ordorite is now the corner stone of our business, providing us live stock across all our branches and kpi information for all departments that guides us to make accurate business decisions”

How you can start using Business Intelligence with your retail system • Start gathering customer information • Start getting more of an understanding of your product ranges • Start looking at a full omni-channel experience for you business • Start consolidating your data in one location

• You need a Business intelligence strategy in the same was you need marketing strategy

How Business intelligence can start working for you • Your not just collecting data for records proposes • You need to start using it and we can help you • Visit us right across from the theatre stand A 132 • Talk to us about your retail and BI solution for you

Ordorite Contact Details

• Stephen Connolly, CEO • Email: [email protected] • Phone: 0044 203 2861 202 • Mobile: 00353 86 325 8602 Kemp House, 152 City road, London, EC1V 2NX

Lock House, Dominick Street, Galway, Ireland