Variety of supply processes in spheres of retail, logistics and distribution breeds a lot of opportunities for services quality increase to final customers, for necessary costs reduction and thus competitive advantage gain. Customers are used to higher and higher services level of their trader and less and less tolerable to shortcomings usually rising just from supply mishandling. Great competition, availability of e-shops and other means of shopping limit salesmen and they then are not able to reach required service quality.
A salesmen challenge consists in customers’ requirement to buy what and when they need. On the other hand, every trader has limited financial and capacity opportunities. It brings a necessity of balance between funds hidden in inventory and customers’ demands for goods availability. Simultaneously we feel rising popularity of new sale channels like e-shops, Click&Collect or home delivery what brings other claims for traders.
Our company focuses mainly to following processes in the sphere of supply optimization:
- Inquiry forecasts;
- Automatic ordering including supply optimal regime identification;
- Suppliers benefits administration;
- ABC analysis of assortment;
- Operative management of promotion reserves;
- Evaluation of achieved KPI, managerial and operative reports
Inquiry forecasting is intended for exact replenishment of goods so that goods sellout and thus a turnover loss have avoided together with prevention of retails oversupply and capital binding to stock. The forecast is provided by a mathematic algorithm determined from a sales history.
Automatic ordering has a large impact on the trader operation. The system makes a buyer free from the routine and time consuming work, prevents human faults and enables to concentrate on key or problematic goods. The system can cooperate with forecast module; however, it can work alternatively too. It takes account of logistics limitations; it takes into consideration possibilities of supplier, packing, transport economy and many other factors.
Administration of suppliers’ benefits provides detailed evaluation of claimed benefits. Human factor elimination contributes mainly to selected benefits volume increase and it finally can raise achieved margin.
ABC analysis of assortment classifies an entire sales assortment per its importance what means a share of single item in revenues or margins. Resulted classification enables to focus on goods from class A and its replenishment is then managed individually. Other items are replenished by automatic ordering.
Management of promotion reserves is intended for goods availability ensuring during promotions analogous to management of common reserves. It has correspondent tools for it made for both sufficient forward buying and it prevents promotion reserves drop under the given safe level.
KPI evaluation and reporting consists of many views to the supply system efficiency. We can recommend a management based on exceptions supported by our solution. The main idea is based on visualization of such indicators exceeding given limits. Our tools then can guide the user to unexpected limits. A responsible manager thus has a possibility of follow only tasks demanding his attention and thus he is not overloaded by high information content what donť signalize any problem.