“The Domo BI SaaS solution gives us an edge and analyses those variables that a BI tool does not normally look at.”
Daniel Martín Ruano
Director of Operations at PuroEGO
PuroEGO is a Spanish company born out of more than 20 years of experience in the textile sector. With its headquarters in Madrid, the brand was launched in 2007 with the aim of providing a more dynamic, urban vision of masculine fashion, with its roots in traditional tailoring. PuroEGO offers affordable fashion based on a commitment to design, detail, and garment quality.
Challenge: PuroEGO needed to be able to access quality information in real time on two KPIs in textile distribution — margin and surplus — in order to make more accurate strategic decisions.
Solution: With the help of Luce IT, PuroEGO decided to implement a Domo BI SaaS solution, which allowed it to better control rotation of its goods by having a clearer picture of its stock, in order to confirm in real time, the margin and surplus from week to week, making decision-making more agile and effective.
Impact: With the Domo BI SaaS solution, data is extracted and analyzed automatically and intelligently in real time (Machine Learning), enabling PuroEGO to rotate goods monthly instead of just twice a year. This automation has also helped to drastically reduce the time it takes to extract and analyse data, going from two days and one person dedicated to this task, to having access to the information in real time, without the need to have somebody assigned to data review, thus reducing costs and increasing profits.
PuroEGO is a Spanish company born out of more than 20 years of experience in the textile sector. With its headquarters in Madrid, the brand was launched in 2007 with the aim of providing a more dynamic, urban vision of masculine fashion, with its roots in traditional tailoring.
Driven by the company’s innovative spirit, PuroEGO won the 2019 Innovation in Retail Prize at the Retail Forum of Spain. However, its Director of Operations, Daniel Martín Ruano, wanted to be able to access more detailed information, much more agilely, that would allow him to make strategic decisions for the business more easily and as quickly as possible.
In the retail sector, an overview of the whole logistical value chain is needed in order to be able to plan strategies that allow excess stock to be relocated and to know exactly what the profit margin is each day. “Before choosing the Domo solution, we would prepare our reports manually in Excel, a task that would take a dedicated person two days to complete. Therefore, from Monday to Wednesday each week, we would be working blind, not having a complete vision of our margin or surplus, and by the time we had finished collecting and analysing the data, it was already two days out of date,” explains Martín Ruano.
PuroEGO’s objective was to have better control of its margins and surplus so it could rotate its stock more effectively, thus reducing operating costs and increasing profits. For that, it needed greater agility in the gathering of information, data analysis and, finally, decision-making. Together with Luce IT, PuroEGO’s provider of technological solutions and a Domo partner, they compared various Business Intelligence solutions, but Domo proved to be the most complete, comprehensive, and scalable option for the company.
With the Domo solution, PuroEGO now has real-time knowledge of how goods are doing in each store. In textile retail, the most important thing is to control two KPIs:
Gross margins on the sale of goods throughout the entire season, taking into account discounts and targets.
The surplus, i.e., the amount of overhead still to sell, which should ideally be no more than 20%.
With the Domo SaaS solution, PuroEGO has a system that gives it a general, real-time overview of each store’s situation, allowing the company to move goods once a month, instead of just twice a year as it did before using Domo. “Information is updated automatically on a daily basis. I can therefore start my day by reviewing the data and then use this information to make decisions much more agilely,” says Martín Ruano. “This way, we can distribute the surplus more quickly, at the same time increasing our profit margin, without having to resort to discounting to sell this surplus.”
All companies need reliable data to be able to make smart business decisions, but this is particularly relevant in the retail sector, which is becoming increasingly competitive with shorter-cycle strategies and facing new challenges related to changes in consumer habits. For this, a BI SaaS platform like Domo’s covers the entire process from extraction and storage of the data in the data lake, to visualisation of this data, and in which intake is so flexible that new data sources can be incorporated and new dashboards can be designed in just a few hours.
Domo gives PuroEGO an edge to analyse variables that BI software does not usually look at. This, combined with Luce IT’s experience and support throughout the process, means the perfect blend to make a resounding and lasting success of PuroEGO’s operations.
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