Errors in sales forecasting and the volatility of consumer demand can cause problems with your product supply, which can result in cost overruns. With the ability of VELOCITY® to harmonize POS, inventory and shipment demand signals in real time, you’ll be able to replenish product quickly to:
- Maintain optimal levels of inventory
- Ensure a strong customer experience for shoppers
- Reduce costs from overstocking or out-of-stocks
Understanding the intricacies of a retailer’s internal replenishment system is a key competitive advantage for many leading consumer goods companies. There are countless flags and triggers in a retailer’s system that might be turned off or set incorrectly which can cause your products to be out of stock or overstocked risking markdowns or returns. The retailer may aslo have key performance indicators (KPI) that can be leveraged to help you proactively detect when there may be a potential lost sale on the horizon.
To quickly identify the root causes of out-of-stock or low-selling situations, VELOCITY users employ comprehensive and proactive techniques for examining all appropriate measures at the store and item level. Using VELOCITY’s data mining capabilities, root causes are easily identified and tagged with appropriate threshold values, then closely monitored through exception reports. VELOCITY uses your business rules to analyze your daily data to identify and predict replenishment issues like out-of-stocks, excesses, store-level anomalies and incorrect replenishment settings. By proactively managing these trigger points, VELOCITY users experience lower out-of-stock rates and higher sales.
VELOCITY helps identify situations in which excess inventory can be eliminated without dissatisfying the consumer, thereby assisting you to:
- Increase Turns and Sell-Thru %
- Eliminate Out-of-Stocks and Lost Sales
- Improve On-shelf Availability and Increase Sales
- Reduce Markdowns, Returns and Out-of-Dates
- Generate Wins at Promotions and New Product Rollouts
- Build Stronger Relationships with Retailers
- Become the "Go-to" Answer Source for Buyers and Replenishers
Some sample topics covered in VELOCITY’s standard reporting are below plus ad-hoc reporting is always available for your "on-the-fly" needs.
- Low Turns Exceptions
- Low Weeks of Supply Exceptions
- Ladder Plans
- Zero or Low Sales Exceptions
- Store Count Tracking
- Planogrammed but Not Replenishing (Traited/Not Valid)
- Reorder Point Analysis
- Store Specific Order (SSO) Recommendations
- Deseasonalized Demand (DD) Analysis
- Safety Stock Setting Review
- Frozen Deseasonalized Demand (DD)
- DC to Store Inventory Supply Analysis
- Low Sell-through
- Lost Sales Opportunities
- Actual to Forecast Tracking
Many more reports geared for analyzing your inventories at the chain, DC or store level are available with VELOCITY. For more information or a demo of VELOCITY’s capabilities in the area of replenishment, please contact us.