The RPM Scoreboard has been revised in a number of ways. Here is some background to the re-design:
Index Values
Many queries are received from users regarding the scores (points) which sit alongside each KPI and which roll up to the overall RPM Index. Scores are derived from a reasonably complex calculation involving standard deviations, z-scores and more! Due to this complexity, the scores have become an unnecessary distraction to users.
In ver 2.0 the RPM Index has been removed from the Scoreboard, but is used behind the scenes to calculate the overall performance ranking.
KPI’s Added: Low Stock %, Dead Stock %
Low Stock % is the value of additional stock required to achieve an optimal stock holding, expressed as a percentage of current stock on hand (at cost). Our experience shows that many retailers run out of their best-selling products in an attempt to preserve cash flow, postponing a reorder until the end of the month. Under the Ver 1.0 Scoreboard substantial low-stock and out-of-stock instances can be misrepresented as being positive via a strong Stock Turn. By integrating the Low Stock % KPI, this dysfunction behaviour will be highlighted.
Dead Stock is Dead Stock % is the proportion of the total stock in your business which has not sold in 180+ days. The ver 1.0 only goes part way to revealing this opportunity via the Active Range and Stock Turn KPIs.
KPI’s Removed: Stock Turn, Active Range, Average Sale
The decision to remove the above three KPIs was closely linked to the question: “So how would I then fix that KPI?”
When improving the Stock Turn and Active Range, you can try increasing your sales, but the otherwise the solution is to cull the stock that isn’t performing. Given that this would typically be the non-performing Dead Products, we have revealed that opportunity through the addition of the Dead Stock KPI.
When improving the Average Sale, there are only two influencers: Average Price and Items Per Customer. Given that the Average Price and Items Per Customer are on the Scoreboard, it was redundant to also have the Average Sale.
Graphing a KPI
When viewing a KPI result, a logical next step is to understand if this is part of a longer term trend. You can now easily plot a KPI result by rolling your mouse over the KPI of interest and then clicking on the Graph Icon.
Fix
A common question upon seeing a poor KPI is “So what can I do to improve it?”. In response to this, we have added a Fix button which will guide you through how a KPI can be improved without having to go deeper into the RPM application. The Fix wizard is a important area of development for us and one which will continue to evolve.
Average and Best Results
In RPM ver 1.0 the average and best results appear as a tool tip which is quite subtle and often missed. In ver 2.0 this information will still display on rollover but is now part of the Scoreboard.
