The unpredictable nature of fashion put those at the centre of this industry in a uniquely challenging position, where knowledge and insight into consumer trends makes the difference between profit and failure.
One growing d'ecor specialist is eliminating the guesswork from the process of selecting its stock, with a high-technology solution: Ferreira's D'ecor World has introduced Cognos Powerplay 7, supplied and implemented by Synergy Computing, to provide valuable insights based on its data.
With branches in Johannesburg, Durban, Bloemfontein and Cape Town - and another opening soon in Pretoria - Ferreira's D'ecor World specialises in the sale of high-fashion furnishings, fittings and other products.
Ross Weston, account manager at Synergy Computing, part of the Sekunjalo Investments Group, says the company has provided Ferreira's with a data warehouse and Cognos 7 Powerplay to report off sales and financial information.
"Data is gathered into a central repository from which it is analysed to produce reports which are used by executive management to support the decision-making processes."
Managing director, Stephen Schutz, points out that technology could never replace human taste with regards to what is and what is not fashionable; however, he says Cognos acts in a decision support role. "We are reliant on and our business is driven by fashions, in terms of furnishings, d'ecor, tiles and related items. In order to buy the latest fashions, it is very helpful to have information that provides a good understanding of how successful we have been in selecting appropriate items in the past," he says.
However, creating a fashionable interior or exterior depends on creating synergies between several items. "This is where Cognos has added particular value. It is capable of providing analysis not just on a specific item, but rather, on a combination of items. This is assisting us to better understand whether or not to bring in a new product, based on the performance of 20 or 30 stock items and how combinations of these items have been accepted by the market," Schutz explains.
Cognos was evaluated as a possible solution owing to the perceived need for an effective BI solution. "We have an ERP solution which was developed specifically for Ferreira's and which is a very effective production system. However, the reporting capabilities were lacking."
Noting that company management is appreciative of the necessity of getting as much information as possible from data, he says the organisation engaged with Synergy Computing for a solution.
"Synergy set about providing an appropriate solution by first thoroughly analysing our needs and building an appropriate model. There were a few problems along the way, as one would expect with any complex technology project, but these were ironed out quickly," says Schutz.
Data is gathered from the production systems into a data warehouse, where Cognos Powerplay goes to work. Schutz says information which comes under scrutiny includes data relating to sales trends, replenishment, margins and overall performance of product ranges.
Some of the results the solution produces are interesting, he reveals. "Fashion trends are quite different in the various regions; Cape Town differs from Johannesburg, while we have been really pleased with how Bloemfontein shops and decorates," he says.
As such, Cognos supports decisions around combinations of products geared for specific areas. "In Cape Town, we might have an item which sells well with a specific wall tile; Cognos helps us identify these sorts of trends which influences how we can put together different combinations of d'ecor," he explains.
Executives rely on the insight provided by the BI solution, matching this with their own awareness and knowledge. "There is definite business value; there is a possibility that we will extend this value further into the organisation (from the executive level to operational middle management) to enable more ad hoc reporting."
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