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].