Managing retail supply chains is complicated, heads-down work. Supply chain teams are often expected to meet ambitious KPI targets that are critical to the health of the entire business. So why should these teams expand their focus to consider markdown planning in addition to their already full slate of targets? Because better markdowns have the potential to significantly improve the traditional KPIs that supply chain teams are evaluated on.
The most important KPIs for supply chain teams include availability, which drives sales; inventory levels, which can reduce working capital; and operational efficiency, which can drive down costs. Strategic improvements to a retailer’s markdown optimization strategy dramatically and rapidly improve these KPIs.
