COR-Private-LabelOperationsReport

COR-Private-LabelOperationsReport - Private-label Report...

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Private-label Report Explanations of Numbers — Cost Allocations — Suggestions and Tips for Using the Report Consulting this report regularly is absolutely essential if your company’s management team is to (1) know the extent to which participation in the private-label segment is contributing to the company’s overall performance (Did you win any of the bids submitted? Did you make money or lose money and in which regions?) and (2) do a good job of running the private-label portion of the company’s business. This report, the Benchmarking data on p. 6 of each issue of the Footwear Industry Report regarding private-label statistics, and to a lesser extent the Plant Operations Report are your three most valuable tools for crafting and executing a strategy to make money in the private-label segment of the global footwear market. This Help page consists of three sections. The first deals with understanding where all of the cost numbers come from and seeing what the margins/profit contributions were on any of the bids that were won in the four geographic regions. The second section presents some suggestions and tips for using the information in this report to good advantage in enhancing the profitability of your company’s private-label operations. The third explains the details of how the two types of exchange rate adjustments shown on this report are calculated. Understanding the Numbers on the Private-Label Report This report contains a comprehensive rundown on your company’s private-label operations, from production costs to pairs produced and shipped to revenues and margins over direct costs. Offers Submitted. This section of the report shows the company’s offers (bids) made to private-label buyers in the report year and, if one or more offers were accepted, the pairs ordered by private-label buyers. For bids that were accepted by private-label buyers, the pairs ordered by private-label buyers always match the pairs offered by the company unless the bid was the last bid accepted by private-label buyers in the region. The last bid accepted in a region will sometimes be for an amount of pairs that is less than the number offered when private-label buyers have satisfied most of the demand by accepting more attractively priced bids from competing companies first. Production and Shipping. This section of the report shows the costs of making the private-label footwear for those contracts that were actually won in the competitive bidding process and the total number of pairs that were produced after rejects, and to which warehouses the pairs were shipped. A brief discussion of each of the production cost components for private-label footwear is presented below: Materials Costs — Your company’s materials costs for private-label footwear are a direct result of the percentages of standard and superior materials used in producing them and the prevailing worldwide prices for standard and superior materials. The “base prices” for materials, unless you have been notified of changes, are $6 per pair for
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COR-Private-LabelOperationsReport - Private-label Report...

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