Wharton Professor Marshall Fisher: The New Science of Retailing
Episode Description
n today's economy, retailers are hard pressed to increase revenues. Among the biggest challenges they face is matching supply with demand. In The New Science of Retailing: How Analytics Are Transforming the Supply Chain and Improving Performance, Wharton management professor Marshall Fisher and co-author Ananth Raman argue that retailers have the data they need to manage supply chains more efficiently and increase sales and profits. Knowledge@Wharton spoke with Fisher about what types of data are most important for retailers to collect, how they can use this information to identify home-run products and why the retailing industry might be missing as much as one-third of sales. 📂 Management
Brief Summary
Marshall Fisher discusses retail supply issues, inventory management, and adapting to consumer behavior for improved profits.
Key points
- The Cost of Excess Inventory. Excess inventory leads to markdowns and lower profits for retailers.
- Retailers and Supply-Demand Mismatch. Retailers often struggle to match supply with demand, leading to lost sales and profits.
- The Importance of Inventory Management. Effective inventory management can significantly boost a retailer's profits.
- Retailers Drowning in Data. Many retailers have vast amounts of data but lack actionable insights.
- Agility in Supply Chains. Flexible supply chains are crucial for retailers to meet demand effectively.
- Retail Staffing Impact. Every dollar spent on payroll can lead to a significant increase in revenue.
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Episode highlights
- The Cost of Excess InventoryExcess inventory leads to markdowns and lower profits for retailers.“The average item sells for 40% off full price.”2:16Jul 21, 2011
- Retailers and Supply-Demand MismatchRetailers often struggle to match supply with demand, leading to lost sales and profits.“A third of customers walk out empty-handed.”2:46Jul 21, 2011
- The Importance of Inventory ManagementEffective inventory management can significantly boost a retailer's profits.“Correcting stockouts could double a retailer's profit.”4:26Jul 21, 2011
- Retailers Drowning in DataMany retailers have vast amounts of data but lack actionable insights.“They're a wash in data but starved for information.”6:53Jul 21, 2011
- Agility in Supply ChainsFlexible supply chains are crucial for retailers to meet demand effectively.“Inflexible supply chains are the bane of almost all retailers.”14:09Jul 21, 2011
- Retail Staffing ImpactEvery dollar spent on payroll can lead to a significant increase in revenue.“Every dollar more you spent on payroll added $10 in revenue on average.”24:49Jul 21, 2011
- Changing Consumer BehaviorThe recession has altered how consumers prioritize spending, making them more price conscious.“People have changed their buying behavior and price matters more now.”27:55Jul 21, 2011
