Improving Purchasing Strategies at a Leading UK Retailer

A major UK electrical retailer relies on the MicroStrategy platform to deliver new management information to its purchasing teams and improve buying strategies. Using MicroStrategy, the client’s new DPP (Direct Product Profitability) application now gives product category managers information on the gross margin of each product and, by integrating data from various sources, presents them with a profit and loss account for their entire range. DPP is used by all category managers at the client’s UK headquarters.

The DPP project is the latest phase in the client’s management information programme using MicroStrategy.

It has given its 250 store managers access to sales analysis and reporting, allowing them to share information, best practices and increase sales. Some stores increased profits by up to 20 percent as a result.

“Enabling our commercial teams to see how much revenue is in each product – not only taking the cost and selling price of each unit into consideration but also distribution, service, warranty and delivery costs – affects buying behaviour and profitability. By having a single integrated BI platform from MicroStrategy, we can easily manage reporting to all our category managers, confident we are dealing with one set of consistent and reliable data. Now decisions are made taking the true profitability of the product into account and not just margin, as we would have done traditionally.” ~ IS Development Controller