Top 3 Reasons CFOs Should Invest in Real-Time Execution and Workforce Management
Brett Friedman, Reflexis Senior Vice President, Global Sales and Marketing, discusses in a Q&A with Chain Store Age how retail CFOs can achieve their business results goals through operational excellence — while executing their customer engagement strategies from online to stores.
As the key cog in the wheel of a retail chain’s financial structure, today’s retail CFOs find themselves caught in the crosshairs of senior management and stakeholders who demand maximum profit and measurable growth amid increased consolidation and tightened revenue. Brett Friedman, Reflexis Senior Vice President, Global Sales and Marketing, recently talked with Chain Store Age Senior Editor Dan Berthiaume about what the retail CFO needs to know about real-time execution and workforce management, including ROI, improved omni-channel execution, and better customer engagement.
How can a platform of real-time task execution and labor scheduling help today’s retail CFOs meet their financial and customer engagement goals?
Retail CFOs operate in a challenging environment that includes fierce online-only competition and increasingly demanding customers. Shoppers demand a seamless online-to-store, also called omni-channel, shopping experience.
The good news is omni-channel customers spend more than online- and store-only customers. And retail chains can use stores as a competitive differentiator. But many retailers still force stores to execute traditional and newer omni-channel processes using obsolete tools such as email, spreadsheets, and office PCs. At Reflexis we see three primary reasons why retailers should implement workforce management solutions.
#1 Increase sales with task management
Retailers have repeatedly confirmed the following ROI metrics after implementing Reflexis Task Manager, in 21 weeks or less:
- 2-5% increased sales
- 95%-plus store-level execution of corporate initiatives
- 30% or more increased sales for items on promotion
- 100% recall compliance, in three hours or less
Task Manager enables retailers to do away with email and phone calls and better coordinate planning, streamline headquarters-stores communication, and ensure sales driving merchandising and promotional initiatives are completed as intended.
#2 Reduce labor costs with task management AND time and attendance / labor scheduling
Retailers have seen the following benefits after implementing task management, time and attendance, and automated labor scheduling:
- 3.5% reduction in annual labor spend through optimized scheduling
- 2.5% savings by reduced labor theft and payroll errors through time and attendance
- Savings in hundreds of thousands to millions of dollars in legal fees, fines, etc. for labor law violations/class action lawsuits
One Reflexis customer, a $17.5 billion retailer, attributed a decline in selling, general and administrative expenses (“SG&A”), increased sales, and increased profitability of $35.9 million over two quarters to its new workforce management system!
#3 Improve profitability with real-time execution and workforce management platform
The third reason pertains to operational excellence in newer omni-channel processes that retailers are introducing. The benefits of an integrated workforce management/real-time execution platform include:
- Efficient store-level fulfillment of e-commerce orders
- Right-time customer service at all touch-points
- Best practice response to alerts about local events, weather, customer feedback, and other demand signals.
Bottom Line –
$50 million-plus increase in annual sales for a $1B retailer (5% increased sales).
$6 million-plus savings annually for a $1B retailer (6% total reduction in labor spend, based on 10% labor-to-sales ratio).
$30 million-plus increase in store sales for a $1B retailer (3% increase in omni-channel sales).
The above interview appeared in the June/July 2014 special issue of Chain Store Age (www.chainstoreage.com) “What the CFO Needs to Know …”
For more information on the Reflexis platform of real-time execution and workforce management solutions, go to reflexisnew.wpengine.com