How DIFOT analysis helps prepare retailers for Cyber Monday?
Cyber Monday is quickly become one of the largest online shopping days of the year. With a 17.9% year-over-year increase in sales, this year’s Cyber Monday is expected to be another busy shopping day. To all the retailers participating – we trust your e-commerce, stock and shipping procedures are ready for the extra attention. For those considering getting involved in 2021 –get started now –and use DIFOT analysis to ensure your customers have a good experience.
Cyber Monday affects shipping speed
Since 2004, Cyber Monday sales have seen double-digit increases year-over-year. In fact, Cyber Monday has actually surpassed Black Friday sales figures since it offers the same benefits without the hassle of braving the crowds. However, this massive surge of online orders can seriously impact shipping speed if companies aren’t prepared.
A study conducted by SmartHub, measured the performance of more than 200 top online retailers on Cyber Monday in 2015. They found they the average order cycle time (AOCT), or “time from click to consumer,” was 4.5 days. While transit was an average of 2.5 days, order processing times varied from 0.69 days to 5.5. Consequently, retailers must prepare for increased sales volume by optimizing their order fulfillment processes to meet the high expectations of consumers. Holiday shoppers expect an excellent experience, especially when it comes to delivery expectations.
Delivery in full, on time (DIFOT)
With an increased demand for fast delivery service, companies need to prepare for record holiday shopping by improving their supply chain efficiencies to ensure excellence during this time of year despite ongoing pandemic disruptions. The delivery in full, on time (DIFOT) metric is a fundamental gauge for evaluating the performance of your supply chain. The whole purpose of your supply chain is to get the products your customers need, when they need them, in the quantity they ordered. DIFOT directly measures how successful your supply chain is at fulfilling this objective. DIFOT is simply the number of orders that were delivered on time, with the right quantity of the correct products, on the day that the customer required them.
How to use DIFOT to prepare for Cyber Monday
In the months leading up to Cyber Monday, you can use DIFOT to evaluate the performance of your suppliers. DIFOT will highlight which suppliers are always late with their supply of stock. Alternatively, this can reveal which suppliers deliver your order on time but not the quantity you ordered. This way, companies can make sure they are relying on their top performers during the holiday rush and you promote these products specifically.
Next, DIFOT can identify help issues within your own supply chain. For example, with DIFOT you can ensure you are maintaining appropriate stock levels by identifying lead times. DIFOT can reveal other issues such as human errors from misreading, miscounting, or misplacing part of an order. Or you may find that a low DIFOT is the result of a disorganized warehouse. Effectively tracking your supply chain will enable you to get things back on track before the holiday rush.
Getting DIFOT right
Investing in a data analytics solution like Phocas is essential to supply chain efficiency. A global supply chain survey found that using data analytics will keep DIFOT at 96% and above, which is 7% higher than the average. While many companies know what the DIFOT percentage is, data analytics allows you to pinpoint where and when problems arise and why. This is because a data analytics solution, lets you ask questions and drill down into the data to discover what is causing you to not DIFOT and then take appropriate measures to fix the problem
Once you determine what’s affecting your ability to DIFOT, you can address it before Cyber Monday and the holiday season. If, for example, you are having problems with a product, you can talk with your supplier to resolve it. If the problem is recurring human error, you can make changes that improve processes. If your stock being mixed or lost, you will have the time to address warehouse inefficiencies. Identifying problems and making adjustments ahead of time will help you to ensure your company is prepared to meet the demands of Cyber Monday, and beyond.
To learn how KPIs like DIFOT can put rigour into your decision-making, click the box below to download our free eBook for retail managers: The keys to retail success.
Empowering businesses with intuitive data analytics, driving informed decisions for growth and profitability. We make people feel good about data.
Behler-Young connects Amazon Alexa and Phocas BI with great results
Can you have a conversation with your business intelligence solution while driving? Behler-Young sales people do. Robert Wright, a Senior Application Developer and Analyst at Behler-Young, integrated Amazon Alexa with Phocas, a business intelligence solution for manufacturers, distributors and retailers. With critical data only a question away, they always know what's going on even when they're on the road.
Why it’s time to rethink financial forecasting
The demands on finance teams are changing. As organizations face increasing uncertainty, business functions are turning to finance teams to provide more frequent, accurate forecasts to help them adapt fast.
7 effective sales team KPIs and metrics
Sales managers need to be savvy and strategic to get ahead. Fortunately, there are many advanced data measurement and analytics options available to help you motivate your team and drive performance.
Here's what's really holding back your finance transformation
Most organizations know they need digital transformation – but too many aren’t delivering.
Find out how our platform gives you the visibility you need to get more done.Get your demo today