Promotions are Vital for Greater Revenue and Reduced Inventory In-Store trade promotions are the lifeblood of the supermarket industry and discount retailer. Trade promotions include products featured in ads and in-store circulars, products displayed on end of aisle caps or away from their normal shelf location, and products with temporary price reductions. They create Trial […]
What is Lead Time? Why Is it Important? Lead Time is the length of days between when an order is placed and the date the goods are available for use. The largest impact to lead time accuracy is found by comparing the expected receipt date to the actual receipt date for each purchase order. In […]
Sales Forecasting is the wrong tool for inventory replenishment and inventory planning. Sales Forecasting, by its very name itself, is a measure of total sales. In our last article, we discussed that the key difference between sales forecasting and demand forecasting is whether (or not) sales data is broken out into the type of sale, […]
Demand Forecasting and Sales Forecasting are different, and the results of each can have a dramatic impact on your profitability. Demand Forecasting and Sales Forecasting should be calculated with some similar and some different data points. While closely related, the two resulting forecast numbers will not be the same in most business situations. The forecast […]
Reviewing Seasonal Indexes is critical for an accurate demand forecast. Seasonal Indexes, also called seasonal multipliers, are used to adjust the demand forecast by multiplying the product base forecast by a multiplier. The effect will raise or lower the demand forecast for the time period, often a week or month. The results are often used […]
Slow and Intermittent products make up 35-40% of most retailer assortments. These products often are critical to the assortment because a top 20% product is often paired with a selection from an assortment of slow demand product choices. This large group of products in your assortment can ruin your turn goals and your GMROI when […]
A mountain of research today shows that improving forecast accuracy delivers a high ROI. Improved forecast accuracy, when combined with software that translates the forecast into demand-driven events, will decrease inventory and operating cost, increase service and sales, improve cash flow and GMROI, and increase pre-tax profitability. Lowering Inventory and Raising Sales at the Same […]
Demand-Driven Forecasting discussions seem to run into a debate on the differences between demand forecasting and planning. We know how new technologies have moved beyond many planner job descriptions, some still think a planner and inventory manager are the same. Unfortunately, many people don’t realize the value proposition that bottom up, demand-driven retail delivers; they […]
Hottest Topics of 2012: Inventory Optimization and Supply Chain Visibility Inventory Optimization and Supply Chain Visibility are the top interest blogs (stories) from 2012. Based on the number of blog viewers and average time each viewer spent on each page, the following five blogs are 3-1 favorites from 2012. These blogs indicate the key areas […]
Speed, Data Granularity, and Groups Combined with Actionable Customization Will Drive Profits in 2013 Atlanta, December 19, 2012 – In 2013, mid-tier retailers, distributors, and grocers will increasingly need real-time actionable insight their into supply chain to drive behavior changes and profitability. Data Profits’ (https://data-profits.com/) iKIS supply chain visibility solution provides actionable insights, allowing companies […]