Lora Cecere, one of the leading analysts in the consumer packaged goods industry, gives a perspective on how operational retailer data will shape the industry in 2010.
“A downstream data information layer is a requirement to build outside-in or demand-driven processes. As companies accelerated their adoption of demand-driven processes in 2009, the use of downstream data increased. Although this isn’t happening fast enough for application providers in today’s crowded technology market, it is happening. Ever so slowly, the market is moving forward. It’s becoming a reality.”
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In his latest blog posting on Logistics Viewpoint, Steve Banker reviews how phantom inventory can cause out-of-stocks even before its level hits the replenishment threshold.
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Steve Banker of ARC Advisory Group highlights some of the industry’s latest findings about the root causes of shelf out-of-stocks.
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“Instead of the retailer spending tens or even hundreds of millions of dollars to build these DSRs, companies like Retail Solutions (RSi) build the DSR for retailers like CVS and Walgreens.”
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“Technologies for collaborative forecasting and multi-tier optimization have required redeployment of traditional APS technologies. Only recently have products evolved that are designed for vendor-managed inventory at the account level and use multiple sources of downstream data. Pilots by […] Retail Solutions are promising.”
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“Consider products from Retail Solutions to sense retail compliance on mass-merchant and drug-channel floor displays. The gap between retail planning and store execution is large and will not be closed any time soon. As a result, CP companies need to build compensating processes to sense out-of-compliance situations and automate alerts to the sales force for resolution.”
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“The example — and growth — of Retail Solutions in this current down economy is both insightful and encouraging. […] It was among the first to recognize the power of applying sophisticated analytics to retailer data such as POS, supply chain, merchandiser feedback, and EPC data through an extensive set of software-as-a-service (SaaS) applications.”
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“[Retail Solutions' offering allows] for improved replenishment, as well as allowing a manufacturer to predict which stores have not properly executed the agreed-upon promotions.”
Arc Advisory Group, Steve Banker
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“Retail Solutions is proving that pattern recognition to drive custom alerts on POS data is feasible in the long run, with compelling ROI in the short term.”
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“If your company wants to jump-start work on shopper segmentation with store-item data, […], Retail Solutions can offer a leg up on learning how to use the data—not to mention a leg up on the competition.”
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“Why did you adopt the T3Ci algorithm?
It was easy. Their algorithm was outperforming ours. We tested theirs against ours and found that their system was detecting 5-8X more OOS conditions than we were getting from our algorithm.”
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“Retailers continue to struggle with promotion execution and face hefty financial consequences, including skyrocketing administrative costs, misspent funds, and sales cannibalization. To help, an increasing number are investing in RFID, business intelligence (BI), and task management solutions to better synchronize demand stimulation with inventory and store labor availability.”
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by Lora Cecere, AMR Research
AMR Research Selects T3Ci Software-as-a-Service Model as a Technology That Signals the Wave of the Future for Consumer Products
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AMR Research Names T3Ci as an Innovation Winner in the Small Company Category for Company’s Breakthrough Ideas in RFID Analytics
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