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The Analyst Viewpoint

Retail Solutions 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.

-Simon Ellis, Manufacturing Insights, 'Retail Solutions' Growth Mirrors Critical Consumer-Centricity Efforts for Manufacturers'

Inventory Management and Replenishment

Supply Chain Solutions

Inventory Management and Replenishment

The ultimate performance metric for inventory management and effective replenishment programs is changing. No matter the replenishment method (warehouse or direct store delivery) and no matter the distribution of responsibilities between retailers and themselves, leading suppliers are now focusing these processes on the ultimate performance metrics shared by both retailers and their suppliers: on-shelf availability and GMROI (Gross Margin Return on Inventory) - rather than service levels.

Retail Solutions changes the inventory management and replenishment paradigms to integrate real customer demand at each stage of the process, managing inventory coverage in near-real time and by designing order forecasts based on actual sales, by item, by store, by day - to ensure each step of the supply chain has the optimal inventory to maximize availability.

By integrating downstream data and leveraging point-of-sale (POS) data when available, Retail Solutions customers are operating Vendor Managed Inventory (VMI) and Direct Store Delivery (DSD) programs using near-real time data at the store level (rather than using historical DC shipments) data to optimize replenishment and inventory. Some of Retail Solutions use cases for inventory management and replenishment include:

  • Excess inventory reduction, both at the warehouse and at the store level
  • POS-based Vendor Managed Inventory (VMI)
  • POS-based Direct Store Delivery (DSD)

Retail Solutions helps you cut down inventory levels and build nimble replenishment programs focused on store- and shelf-level availability.

  • Monitor inventory in real time and align replenishment processes on sell-through rather than on sell-in
    Case Study: see how Kellogg's achieved a 17% DC excess inventory reduction
  • Accurately predict or respond to sudden changes in demand/supply caused by promotional activity
  • Take into account individual store facts to build more accurate projections and plans
  • Improve visibility on real consumption throughout your enterprise, to fuel your S&OP processes

Retail Solutions inventory management and replenishment solution enables CPG companies to build a more effective, more efficient forecasting process.

  • Granular: by customer DC or store, by item, by day
  • Automated: removing the need for customer team resources
  • Accurate and up-to-date: re-projects store orders on a daily basis by item & DC to account for sudden changes in store demand/supply
  • Fully integrated into existing vendor-managed inventory (VMI) or direct store delivery (DSD) legacy solutions such as SAP APO or IBM CRP

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