As a result of the COVID-19 crisis, Intergamma (known for Gamma and Karwei) experienced strong growth of sales. To make this growth sustainable, the DIY chain, in collaboration with IG&H, has built and implemented a profitability solution called "Margin Manager". The solution provides actionable data insights into product profitability that enables fast decision-making in the financial, commercial and operational domain.
Technology and data science are combined in the Margin Manager. This is presented in a user-friendly and dynamic dashboard in which the "Gross Margin after Delivery and Fulfillment" (GMDF, or bottom-line profitability of products and orders) is transparent. Since exceptions are made visual in this dashboard, all disciplines within the organization can see at a glance where action is needed. Data from all relevant data sources, from sales data to invoices, is immediately and automatically transferred to the Google Cloud to deliver these insights. Advanced algorithms and activity-based costing methods are used to allocate all sources at product level. Through the use of BI software it is possible to facilitate profitability insights at any moment in time. With over 100 employees trained to use the solution, it a big step forward in embedding a data-driven way of working across the Intergamma organization.
The rapid development and implementation of the solution has enabled Intergamma to steer on profitability throughout the crisis. The multidisciplinary approach of the project ensured company-wide support and resulted in the implementation of more than fifty improvement initiatives. The solution therefore contributes to Intergamma's objective to make their e-commerce model scalable.
"It is important for Intergamma to be able to steer on data that really matters. As it has been a challenge for many companies, it was also a great challenge for us to create the right structure for doing this. IG&H helped us to structure our data, set up user-friendly dashboarding, but especially supported in the implementation of these tools. Something that was desperately needed as online sales reached peak after peak due to the corona pandemic. Now we can anticipate much better on the KPIs that really matter! "
- Anouk Beeren (Director Cross Channel Intergamma)
"The GMDF model provides a lot of information and insight into profitability at segment, product and order level. The model enables all relevant disciplines, including category management, logistics and finance, to be able to manage online profitability fast and solid, thereby providing financial support for decision-making. This increases the predictability and scalability of our online business.”
-Laura Hendrickx (CFO Intergamma)
"The corona pandemic has sharply increased the online revenue share of many retailers. We often see that the unexpected nature of this growth presents a challenge to manage it in a sustainable and profitable way. We are pleased to help Intergamma with this challenge by combining our retail knowledge with our technology and data science capabilities. In collaboration with Intergamma, we have been able to successfully build and implement this Margin Manager.”
-Jasper van Rijn (Partner IG&H)
Jasper van Rijn | Partner IG&H
Myrthe van Hoek | Consultant Retail
Daan Eickmans | Manager Retail