Dear Friends, Grateful if I can be supported by any one who may have worked in developing targets/KRAs/KPIs for the retail business.
Would appreciate if the indicative KRAs could please be shared for further developing individual targets.
Thank and regards,
Sanjib.
From India, Delhi
8Would appreciate if the indicative KRAs could please be shared for further developing individual targets.
Thank and regards,
Sanjib.
From India, Delhi
Retail Financial KPIs
Accounts Payable Turnover --- Avg Accts Payable / (Cost of Sales / 365)
Accounts Receivable Turnover Days --- Avg Accts Rec / (Credit Sales/365)
Acid Test Ratio ---(Current Assets - Inventory)/Current Liabilities
Admin Cost % ---(Administration Costs / Sales )*100
Average Inventory --- (Beginning of Period Inventory + End of Period Inventory)/2
Break-even ($) --- Fixed Costs / Gross Margin Percentage
Cash Conversion Cycle --- Days Inventory Outstanding + Days Sales Outstanding + Days Payable Outstanding
Contribution Margin --- Total Sales - Variable Costs
Cost of Goods ---- Retail Price - Markup
Cost of Goods Sold ---- Beginning Inventory + Purchases - Ending Inventory
Current Ratio --- Current Assets / Current Liabilities
Ending Inventory At Retail ---- Beginning Inventory - (Sales + Transfers out + Return to Vendor + Markdowns + Employee Discounts + Shrinkage) + (Purchases + returns from Customers + Transfers In + Markups)
Gross Margin --- Total Sales - Cost of Goods
Gross Margin Return On Investment ---- Gross Margin $ / Average Inventory Cost
Initial Markup ---- (Expenses + Reductions+Profit)/(Net Sales +Reductions)
Interest Cost% --- (Interest Costs / Sales)*100
Inventory Turnover ---- Net Sales / Average Inventory
Maintained Markup $ ----- (Original Retail - Reductions) - Cost of Goods Sold
Margin % ---- (Retail Price - Cost) / Retail Price
Markup % ---- Markup Amount / Retail Price
Net Receipts ---- (Purchases + Transfers in + Returns from Customers + Overages) - (Transfers Out + Return to Vendors)
Net Sales --- Gross Sales - Returns and allowances
Retail Price --- Cost of Goods + Markup
Return on Capital Invested ---- (Profit for the Year / Capital Employed)*100
Sales per Square Foot ---- Sales per square foot = Total Net Sales / Squarefoot of selling Space
Stock Turnover Days ---- Average Inventory / (Cost of Sales /365) number of days Total Asset Sales Ratio ---- Sales / Total Assets
Turnover ------Total $ Sales for season / Average $ Inventory for season
Retail Customer Centric KPI's
Customer Gross Profit----- Customer GROSS Profit = Customer Sales - Customer Cost of Goods Sold for a period
Customer Lifetime Purchase Value ----- Monetary value of each customer's life time purchases from the retailer
Customer profitability ---- Customer Profitability = Customer Sales - (Customer Returns - Customer Cost of Goods Sold + Customer Promotion Expenses + Activity Based Cost of Servicing Customer) for a period
Customer Purchase Freq Count ---- Count of customer purchases transactions over a period of time
Customer Purchase Value --- Monetary value of each customer purchase during a period with an average value for all purchases for the period
Customer Reference question ---- A rating from 0 to 10 that indicates if the customer would recommend the store.
Customer Sales by Segment ---- This formula is dependent upon defining customer segments (based on age, education, lifestyle, income and other factors) and associating individual customers to specific segments.
Customer Service Staffing ---- Face to face customer service staff count / total staff count
Visit to Buy Ratio ---- Sales Transaction Count per period / Visit Count Per Period
From India, Madras
Accounts Payable Turnover --- Avg Accts Payable / (Cost of Sales / 365)
Accounts Receivable Turnover Days --- Avg Accts Rec / (Credit Sales/365)
Acid Test Ratio ---(Current Assets - Inventory)/Current Liabilities
Admin Cost % ---(Administration Costs / Sales )*100
Average Inventory --- (Beginning of Period Inventory + End of Period Inventory)/2
Break-even ($) --- Fixed Costs / Gross Margin Percentage
Cash Conversion Cycle --- Days Inventory Outstanding + Days Sales Outstanding + Days Payable Outstanding
Contribution Margin --- Total Sales - Variable Costs
Cost of Goods ---- Retail Price - Markup
Cost of Goods Sold ---- Beginning Inventory + Purchases - Ending Inventory
Current Ratio --- Current Assets / Current Liabilities
Ending Inventory At Retail ---- Beginning Inventory - (Sales + Transfers out + Return to Vendor + Markdowns + Employee Discounts + Shrinkage) + (Purchases + returns from Customers + Transfers In + Markups)
Gross Margin --- Total Sales - Cost of Goods
Gross Margin Return On Investment ---- Gross Margin $ / Average Inventory Cost
Initial Markup ---- (Expenses + Reductions+Profit)/(Net Sales +Reductions)
Interest Cost% --- (Interest Costs / Sales)*100
Inventory Turnover ---- Net Sales / Average Inventory
Maintained Markup $ ----- (Original Retail - Reductions) - Cost of Goods Sold
Margin % ---- (Retail Price - Cost) / Retail Price
Markup % ---- Markup Amount / Retail Price
Net Receipts ---- (Purchases + Transfers in + Returns from Customers + Overages) - (Transfers Out + Return to Vendors)
Net Sales --- Gross Sales - Returns and allowances
Retail Price --- Cost of Goods + Markup
Return on Capital Invested ---- (Profit for the Year / Capital Employed)*100
Sales per Square Foot ---- Sales per square foot = Total Net Sales / Squarefoot of selling Space
Stock Turnover Days ---- Average Inventory / (Cost of Sales /365) number of days Total Asset Sales Ratio ---- Sales / Total Assets
Turnover ------Total $ Sales for season / Average $ Inventory for season
Retail Customer Centric KPI's
Customer Gross Profit----- Customer GROSS Profit = Customer Sales - Customer Cost of Goods Sold for a period
Customer Lifetime Purchase Value ----- Monetary value of each customer's life time purchases from the retailer
Customer profitability ---- Customer Profitability = Customer Sales - (Customer Returns - Customer Cost of Goods Sold + Customer Promotion Expenses + Activity Based Cost of Servicing Customer) for a period
Customer Purchase Freq Count ---- Count of customer purchases transactions over a period of time
Customer Purchase Value --- Monetary value of each customer purchase during a period with an average value for all purchases for the period
Customer Reference question ---- A rating from 0 to 10 that indicates if the customer would recommend the store.
Customer Sales by Segment ---- This formula is dependent upon defining customer segments (based on age, education, lifestyle, income and other factors) and associating individual customers to specific segments.
Customer Service Staffing ---- Face to face customer service staff count / total staff count
Visit to Buy Ratio ---- Sales Transaction Count per period / Visit Count Per Period
From India, Madras
Hi Mihir, The above is very informative. Can you please provide me KPI & KRA for Operation, Marketing & Acconts Department of retails industry. Its really urgent. Regards Shikha jain
From India, Bangalore
From India, Bangalore
Hi Shikha
Here is the few key important one for - Accounts department.
Receivables:
AR Balance -
------DSO
------Closing group amount
------Credit Limit Used %
------Total AR Overdue Amount
AR Aging -
------AR Aging 1-30 Amt
------AR Due 1 - 30 Amt
------AR Overdue 1-30 Amt
Payment Performance -
------AR PAyment Days
------AR Weigthed Days
------Time Paid Before Due
AR Transactions -
------AR Avg Invoice Amt
------AR Credit Memo Amt
Payables ----
AP Balances -
------DPO
------Closing Group Amt
------Total AP Overdue Amt
------Overdue Amt to Total%
AP Aging -
------AP Aging 1-30 Amt
------AP Due 1 - 30 Amt
------AP Overdue 1-30 Amt
Payment Performance -
------AP PAyment Days
------Ap Weigthed Days
------Time Paid Before Due
AP Transactions -
------AP Avg Invoice Amt
------AP Avg PAyment Amt
General Ledger--
-Balance Sheet
------Cash
------Accounts Receivables
------Debt to Equity Ratio
------Current Ratio
-Asset Turnover
------AR Turnover
------AP Turnover
------Inventory Turnover
------Cash Cycle
------Fixed Asset Turnover
Cash Flow -
------OPerating Cash Flow
------Investing Cash Flow
------Financing Cash Flow
------Net Cash Flow
Then we have for Profitibilty
-Profitibilty Returns
-Margins
-Product Profitbility
-Customer Profitibilty
From India, Madras
Here is the few key important one for - Accounts department.
Receivables:
AR Balance -
------DSO
------Closing group amount
------Credit Limit Used %
------Total AR Overdue Amount
AR Aging -
------AR Aging 1-30 Amt
------AR Due 1 - 30 Amt
------AR Overdue 1-30 Amt
Payment Performance -
------AR PAyment Days
------AR Weigthed Days
------Time Paid Before Due
AR Transactions -
------AR Avg Invoice Amt
------AR Credit Memo Amt
Payables ----
AP Balances -
------DPO
------Closing Group Amt
------Total AP Overdue Amt
------Overdue Amt to Total%
AP Aging -
------AP Aging 1-30 Amt
------AP Due 1 - 30 Amt
------AP Overdue 1-30 Amt
Payment Performance -
------AP PAyment Days
------Ap Weigthed Days
------Time Paid Before Due
AP Transactions -
------AP Avg Invoice Amt
------AP Avg PAyment Amt
General Ledger--
-Balance Sheet
------Cash
------Accounts Receivables
------Debt to Equity Ratio
------Current Ratio
-Asset Turnover
------AR Turnover
------AP Turnover
------Inventory Turnover
------Cash Cycle
------Fixed Asset Turnover
Cash Flow -
------OPerating Cash Flow
------Investing Cash Flow
------Financing Cash Flow
------Net Cash Flow
Then we have for Profitibilty
-Profitibilty Returns
-Margins
-Product Profitbility
-Customer Profitibilty
From India, Madras
Hi Geeta
This is for genric one, it can differ for each resource level?
What have you done in the past 6 months (measurable action items)?
Areas of Improvement
Goals for FY09-2010 Jun to Mar
Business Development, Pre-Sales
Customer Satisfication
Communications
Development
Testing
Comptency Development
IP - Development
General - White Paper, Certification, Training conducted, etc...
From India, Madras
This is for genric one, it can differ for each resource level?
What have you done in the past 6 months (measurable action items)?
Areas of Improvement
Goals for FY09-2010 Jun to Mar
Business Development, Pre-Sales
Customer Satisfication
Communications
Development
Testing
Comptency Development
IP - Development
General - White Paper, Certification, Training conducted, etc...
From India, Madras
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