With a web-based planning system, Staples increased its gross margin 75 basis points to 28.6% of sales and its operating margin 90 basis points to 8.7% of sales, comparing the third quarter of 2004 with the same quarter of 2003, Staples said at the National Retail Federation conference in New York this week.
“Staples is serious about advanced planning,” said Mark Bauer, director of planning and forecasting.
Staples is using a web-based advanced planning system from Evant. The Evant Merchandising Planning system provides a browser-based user interface that provides for faster planning processes; the system also supports integrated planning processes that more closely associate merchandise and category planning with functions like assortment among stores.
In addition to helping to sell products faster, avoid markdowns and improve margins, the system also has helped improve inventory turns, Bauer said. Inventory turns in the second and third quarters of 2004 improved by 34 basis points over the comparable periods of 2003, while maintaining in-stock product availability, Bauer said.
Bauer added, however, that retailers expecting to benefit from a web-based advanced retail planning system should first get their business processes in order. “Start out with your business processes, where you are today and where you’re going,” he said.
Back...
