ToolsGroup and Retail Velocity Partner for POS Demand Sensing
Key expected benefits available through the new solution are:
- B2C and B2B manufacturers and distributors can now acquire POS data across their retail distribution network, bringing demand connectivity to companies previously one step removed from this data
- Suppliers can now use POS data to optimize Vendor Managed Inventories (VMI) across a wide range of their retailers through use of ToolsGroup’s Demand Sensing analytics and Retail Velocity’s VELOCITY® POS Analytics and Reporting solution
- Suppliers will be able to incorporate Direct EDI 852 POS Data, Walmart Retail Link, Target MerchIQ, Kroger Business 2 Business, CVS CMG, THD HomeDepotLink, Lowes VendorDart, and over 400 other Retailer and Distributor data streams into one Demand Signal Repository
- Suppliers will have access to Retail Velocity's POS analysis reports and tools to maximize sell-thru, reduce out-of-stock, manage inventory, and many other POS Analytics Benefits
- Using the VELOCITY® POS Analytics and Reporting solution, suppliers are able to Identify Phantom Inventory, Reduce out-of-Stock, Increase On-Shelf Availability, Maximize Sell-thru, Manage Promotions, Perform Media Spend Analysis, Manage and Analyze New Product Launch, etc.
Sensing demand using downstream data (such as POS, Walmart Retail Link, Target MerchIQ, THD TheHomeDepotLink, store and DC inventories and promotions) and the VELOCITY® POS Analytics and Reporting solution generates major improvements in forecast accuracy and inventory optimization. To illustrate, ToolsGroup customer and vertically integrated retailer Amplifon (known by its brand Miracle Ear), recently deployed POS Demand Sensing to reduce inventory levels by 18 percent and inventory obsolescence by 40 percent. ToolsGroup customers with captive or a few closely connected retail networks have achieved similar results in industries such as coffee, cosmetics and mobile phone retailing.
The gap in the marketplace exists where data is required from many disparate retail networks. ERP systems usually cannot access nor maintain the data at the highly disaggregated level required for demand analytics. Neither can they cleanse and harmonize the POS data across all retail networks consistently. Retail Velocity and ToolsGroup solve this problem by incorporating VELOCITY®’s Demand Signal Repository into ToolsGroup’s SO99+ POS Demand Sensing platform to allow businesses to sense demand across multiple retailers and plan within a single model. The Demand Signal Repository cleanses and harmonizes retail POS, inventories and DC shipments, and integrates this data seamlessly within the SO99+ POS Demand Sensing platform.
"Taking advantage of data at the point of consumption to achieve near real-time representation of consumer behavior leads to performance improvements and enhanced supply chain inventory optimization," says James Cooke, principal Analyst at Nucleus Research.
The joint ToolsGroup POS Demand Sensing and VELOCITY® POS Analytics and Reporting solution is available now through both ToolsGroup and Retail Velocity.