High above Melbourne’s bustling streets, we gathered with some of the brightest minds in merchandising to discuss the challenges and opportunities shaping the industry today. The 360 view of the beautiful Melbourne bay was spectacular and the conversation was rich with insights, as leaders shared candidly about the pressures they’re facing and the strategies they’re deploying to navigate this complex landscape. 

Here are my key takeaways from that discussion. 

 1. Defending Margins in a Competitive Market

This was the main point of conversation. With consumer spending under pressure and fixed costs rising, the need to protect margins was at the forefront of every leader’s mind. The days when one could rely on volume alone are gone. Now, it’s about being strategic with your product mix—selling more high-margin items while keeping markdowns to a minimum. But this is easier said than done.

A senior director spoke about the difficulties in establishing scalable rebate structures with suppliers, particularly in the early stages of the relationship. It’s a balancing act—one that often leaves retailers struggling to maintain profitability as they negotiate terms that are mutually beneficial. This is a common pain point, especially when trying to foster partnerships with emerging brands where both sides are still finding their feet.

 2. Data Quality and Alignment Across the Business

One of the most persistent challenges discussed was the fragmentation of data and the struggle to align it across different departments and business arms. Whether it’s managing thousands of SKUs from a multitude of suppliers or trying to ensure that everyone is working from the same playbook, the pain is real.

Retailers who deal with hundreds of suppliers, often find themselves wrestling with inconsistent data formats and outdated systems that make it difficult to react quickly to market changes.

The Head of Merchandising for a large conglomerate mentioned how challenging it is to manage cross-functional teams when each department has its own objectives and systems. She was concerned that this misalignment not only slows down decision-making but also leads to missed opportunities in the market.

 3. Optimising Inventory and Reducing Markdowns

Another major concern was the ongoing battle to optimise inventory and reduce the reliance on markdowns.  A leading specialist retailer, for example, is heavily focused on improving sell-through rates at full price, which requires a delicate balance of inventory allocation.

“You need to avoid stock-outs and minimise slow-moving stock, all while ensuring that your best-selling items are always available but with disparate systems, this becomes the white elephant in the room.”

The challenge here is not just in predicting demand accurately but also in having the agility to respond quickly when things don’t go according to plan. This is where the real work happens—on the ground, in the day-to-day operations of managing a retail business.

 4. Managing Supplier Relationships

Building and maintaining strong relationships with suppliers was another theme that resonated deeply. Many leaders spoke about the difficulties in working with suppliers of varying sizes and capabilities. Whether it’s a small startup or a large multinational, the dynamics can be tricky. You want to ensure that both parties benefit as the relationship grows, but this requires careful management and clear communication.

For instance, balancing the needs of a startup supplier with a large national retailer can be challenging. If not managed properly, it can lead to friction and ultimately affect the success of the partnership.

Andisor’s role in the ecosystem

In the midst of these challenges, there’s a clear need for tools and platforms that can help merchandising leaders navigate the complexities of their roles more effectively. This is where Andisor comes in. Andisor is built to optimise the buying process, helping buyers and their suppliers achieve their shared goals of increased margins.

1️⃣ Unified Data Format

Say goodbye to a flood of Excel files and PDFs. Andisor transforms data from all suppliers into a single, consistent format. No more aligning scattered data—everything’s readable, reliable, recognisable across the board - and ready for action. out innovative business model delivers immediate value to buying teams 📊

2️⃣ Visual Assortment Planning

Andisor offers a visual, intuitive platform where buyers can compare products across brands and categories, ensuring your decisions are strategic and spot-on. 🎯

3️⃣ Streamlined Ordering Process

Place orders faster and with greater accuracy. With Andisor, both suppliers and buyers work off the same data set, reducing errors and freeing up time to focus on what really matters—driving growth. Andisor can also integrate with specialised planning software, converting the excel output of suggested orders to order forms and finally POs ⚡

4️⃣ Real-Time Post-Purchase Tracking

Keep track of every order with ease. Andisor provides post-purchase service and tracking, so you always know the status of your shipments. 🚚

5️⃣ Instant Sell-Through Data

Get instant insights with sell-through data crunched and shared at the click of a button. This empowers both retailers and suppliers to make informed decisions quickly, boosting profitability and reducing markdowns. 💥

In today’s challenging retail environment, every margin dollar counts. Andisor gives merchandising leaders the tools they need to make decisions with confidence, helping to drive growth and defend margins in an increasingly competitive market. Let me leave you with this stunning view, and let’s talk about how we can tackle these challenges together and unlock new opportunities for your business.