Welcome to the Retail Simulation Lab!

In this episode we covered how increasing ESG regulations are impacting the fashion industry;

- The upcoming sustainable fashion regulations in the EU
- The global trend for regulating sustainability
- How does this change the rules of the fashion industry?
- How can you prepare for such regulations as a brand, retailer or vertical?
- And much more.

Listen to Alan, Roel and Jasper engage in a conversation about Theory of Constraints, Supply Chain, Retail and Transformation Management 'to explore ways to do better'.

Welcome to the Retail Simulation Lab!

In this episode, recorded live on July 6th, we covered different replenishment rules, and also talked about how new tech will likely impact supply chain governance.

- Replenishment 101
- How important is the rule?
- Which rule works best, when?
- When not to follow the rule?
- The impact of new tech?
- And much more.

Listen to Alan, Roel and Jasper engage in a conversation about Theory of Constraints, Supply Chain, Retail and Transformation Management 'to explore ways to do better'.

During this second episode of the Return On Inventory podcast, Dr Alan Barnard and Jasper Zeelenberg provide you with the framework for evaluating and choosing the right metrics as a retail organisation. 

Expect actionable takeaways, hilarious (and insightful) anecdotes and expert knowledge about all the key metrics that make up a retailer's profitability.

Timestamps

• (0:00) Introduction
• (2:23) The 3 criteria for evaluating the value of a metric
• (8:02) Why really good metrics are often ratio’s
• (12:07) How to calculate true profitability
• (15:08) En example for when increasing costs in the short term can deliver great results in the long term
• (16:50) How to (actually) audit your metrics
• (19:25) On-shelf availability (OSA)
• (22:10) Average rate of sale
• (23:26) How metrics of averages lead to errors
• (26:22) Initial markup (IMU)
• (28:52) Cost per unit shipped
• (30:38) How to optimise decisions for the business as a whole
• (33:15) Why individuals’ good intentions may come into conflict with business results
• (38:00) Everything to know about supply and demand lead times
• (48:38) Quick wins and key takeaways

About the Return On Inventory Podcast

Through interviews, AMAs, and invite-only events, we give you a sneak peek into the data-backed insights we are executing for the fastest-growing retail brands in the world.

This podcast mostly covers the fashion & sporting goods industries, but there's something for anyone working in a strategic role today. Feel free to send ideas, feedback, or hello's to [email protected].

• (2:20) How to think about events LIKE Black Friday in retail. (It's not about stacking 'em high and selling 'em cheap!)
• (05:14) The real cost of surpluses
• (08:20) The fundamental problem with depending on forecasts for meeting demand
• (12:27) Common misconceptions regarding (responsive) supply chains
• (17:38) Unsustainable overproduction throughout the fashion & sporting goods industries
• (18:34) How retailers like Zara (Inditex) and SHEIN are leading the way in sustainability (contrary to popular belief) on top of profitability
• (21:07) Learnings from reducing lead times and how to properly approach reducing lead times
• (27:33) Applying wisdom from Eli Goldratt inside retail supply chains
• (31:52) Simple tactics for dealing with Black Friday and similar spikes in demand
• (40:42 The challenge of offering a variety in your assortment vs not selling any of it
• (43:17) Outdated and counter-productive KPIs driving misalignment throughout retail supply chains
• (49:51) Various metrics that retailers should be measuring and how to monitor them
• (52:23) Summarising the key takeaways for solving the Retailer’s Dilemma

About the Return On Inventory Podcast

Through interviews, AMAs, and invite-only events, we give you a sneak peek into the data-backed insights we are executing for the fastest-growing retail brands in the world.

This podcast mostly covers the fashion & sporting goods industries, but there's something for anyone working in a strategic role today. Feel free to send ideas, feedback, or hello's to [email protected].