THOUGHT LEADERSHIP

Thought leadership is a critical competitive differentiator of Karabus. We achieve this advantage with a tireless search for the brightest, most experienced people, a culture of internal competitiveness to find the next big ideas, and ongoing investment in industry research and benchmarking.

We encourage clients to think about process transformation as an enabler of competitive advantage not just to complement technology changes.

Often our work begins as a tactical review of one of more functions but ends as a company-changing transformation of costs, processes or people. We believe strongly in ideas that will be transformational not just incremental, coupled with tireless execution.

Finance & Accounting Benchmark Service
In 2005, Karabus formally launched a benchmarking study of finance functions in retailers. This service is the result of two years of proprietary research identifying best practices with 35 leading North American Chain retailers. The benchmark program helps retailers quickly identify and quantify opportunities to reduce costs and increase the value of their finance and accounting departments. Feedback from retail CFOs who have used this service has been extremely positive. Click here to read more on this extensive research.

This Karabus benchmark service offering has been valuable to many retailers. The benchmark revealed that retail finance departments need to significantly increase the value they provide to business functions and that they had significant opportunities to improve efficiency despite the significant investments made over the past 10 years in ERP systems. The study identified specific tactics leading retail CFOs have used to help merchandisers improve their operations.

To participate in our Finance & Accounting Benchmark program, click here.

Selling, General & Administration Cost and Working Capital Benchmark Service Karabus Management launched an extensive proprietary retail SG&A and Working Capital benchmarking program in 2008. This provides the CFO and CEO with a "snapshot" of their G&A costs and how they rank against comparable leading retailers on key financial and operating metrics.

We benchmark the following key retail functions:

• Merchandising
• Store Operations
• Marketing
• Information Technology
• Finance and Accounting
• Human Resources
• Real Estate & Construction
• Occupancy Costs
• Supply Chain
• Corporate Services

Karabus has developed custom benchmarks for each of the following sectors:

• Department Stores
• Grocery
• Specialty
• Big Box

IT Benchmarking Service
With IT critical to retail success and competitive advantage, most retail business executives wonder whether they are spending too much or too little on IT. There are numerous public studies that indicate IT should cost anywhere from 1.5% to 2.5 % of sales -- a massive variance.

The retail industry today is simply too complex for executives to base their IT spending on a single metric that does little to account for the unique aspects of their particular organization. While benchmark surveys from the major research firms are a useful first step, they should be considered directional and only a part of the answer.

Benchmarking IT costs is not simple. Retail executives must dig much deeper than just their IT budgets and understand all components of their business that could impact IT costs. The most effective way to determine the right IT budget is to partner with an objective third party such as Karabus Management and evaluate IT costs in the context of overall IT effectiveness.

Karabus has conducted extensive IT benchmarking at more than 30 major retail chains. By following this approach, retail executives can determine whether they are truly getting value from IT and assess whether they are spending too much or too little on IT. Click here to read more on IT Benchmarking.

To participate in our IT Benchmark program, click here.

BEST-PRACTICE RESEARCH
To keep its consulting practices ahead of the industry, Karabus regularly conducts primary proprietary research on how retailers are addressing key issues. Each study examines at least 20 retailers and conducts in-depth case study interviews with multiple people in each firm to identify best practices. In reporting the results of each study, Karabus always maintains the confidentiality of study participants with regard to their individual practices and metrics.

In early 2007, Karabus released its first such study, on markdown optimization and assortment planning. We have shared the results with more than 20 leading retailers and at key retail industry investor conferences. In addition, the prestigious Women's Wear Daily published the results of the study.

In late 2007, Karabus will launch primary research with 18 grocery chains on a key aspect of driving merchandise profitability in the grocery industry.