Management One’s Top Models

No, it’s not a new reality show, but it’s just as intriguing. You often hear us talk about our models and how they affect your plans. M1 models aren’t the kind that walk the runway enticing you to buy the latest fashions, but the correct models will maximize profits and identify missed opportunities to grow your business.

How do models do that?

First, we analyze your data and identify the peaks and valleys. Is inventory peaking to satisfy demand and maximize sales? Is inventory then reduced to the correct level to begin the next period with fresh goods to drive new business? Peaking and valleying deliver significant dividends in growth and cash flow. No other planning system places as much energy in getting this right as Management One.

Next, we incorporate a cross-sampling of data from our client database that represents the same class type and demographics. By blending this information, we develop the ideal sales curve for each class in your location. This is especially critical in new location setups. Our models assess:

• Seasonality of the class

• Reasonable markdowns

• Initial Markup (IMU)

• Efficient turn rates

This comprehensive approach allows us to build accurate sales, inflow, and cash flow models. By peaking and valleying inventory, we ensure a desired cash flow outcome and sustained business growth.

Why don’t we just follow your history?

While history provides useful patterns, it also carries inherent biases. For example:

• Shipping Delays: What if vendors didn’t or couldn’t ship on time? Earlier deliveries could change your sales curve.

• Trend Shifts: What if a major trend changed or unexpected weather disrupted business?

These factors skew historical data. We don’t want to repeat past mistakes or plan for disruptions that may not occur again. By blending your historical data with cross-client insights and current trends, we offer a more dynamic and accurate forecasting model.

Additionally, businesses may have biases toward certain classes. Some retailers believe products can only sell during specific times of the year. Our models challenge these assumptions by evaluating each class's true potential. We ask important questions, such as:

• Is there more demand than what history shows?

• Is the class emerging, making past data irrelevant?

The Power of the Management One Ecosystem

Management One maintains the largest database of Independent Specialty Retail Data, organized by classification and other demographic insights. Each month, our clients benefit from being part of this ecosystem. As our database grows and our analysis evolves, your business gains from the collective intelligence and market trends we uncover.

We encourage you to engage with us. Your insights from the field are invaluable in helping us refine our models and provide even greater value to your business. Together, we can continue to drive growth, maximize profits, and uncover new opportunities.