Retail

Multichannel has forced retailers to revisit how they forecast demand and position inventory. It means no longer planning in silos, but across channels. Promotion forecasting, new product forecasting and demand planning all need a fresh approach. And “long tail” demand and inventory planning are important, even when the problem is disguised as an assortment or merchandising problem.

As fulfillment options – shop on line/pick up in store, shop on line/ship from store, etc. – continue to grow, the increase in cost-to-serve is starting to impact the bottom line. More efficient and accurate planning is required.

This includes deciding where to place inventory in the network to satisfy demand – including inventory postponement rather than pushing it all out at once. Where does product need to be to satisfy customers?

With the right tools, retailers can generate a unified demand signal, making the supply chain responsive to volatile demand, even in multichannel networks. They can achieve greater supply chain visibility, significantly increase shelf-fill rates, reduce lost sales at point of sale, and reduce global inventory.

• Demand modeling assures precise modeling of seasonality, new product launches and returns.
• Promotion forecasting and optimization leverages machine learning for shaping demand in the digital path to purchase.
• Inventory optimization analyzes daily store-level demand to determine in-store and warehouse inventory buffers at individual stocking locations.
• Demand collaborations allows both internal trading teams and external suppliers to optimize supply chain planning and/or Sales & Operations Planning (S&OP).