• Call Us: +1(770)574-4100
  • One Meca Way, Norcross, GA 30093

Monthly Archives

April 2013

Critical Steps to Forecasting Replenishment for Demand PlanningForecasting replenishment correctly and following standardized inventory replenishment processes continues to deliver significant returns to retailers, wholesalers, and manufacturers. For the retailer/ wholesaler/ manufacturer ready to move away from legacy technologies, there are huge opportunities that cost 50-90% less than legacy systems. A forecast accuracy in the 90% range we know delivers a significant shareholder value increase of 15% or more.

Several documented events support these claims (click a link): a retailer achieved a 25% inventory reduction and a 3% same store sales increase in 90 days, the sales and inventory trend continued going forward (press release), Dr. Mentzer’s 3 page story concerning a collection of businesses that delivered an average 15% shareholder value increase via forecast accuracy improvements which directly impacted forecasting replenishment, and The Home Depot Chairman and CEO, Frank Blake, specifically stated in the 2011Q4 earnings briefing that supply chain investments continued to provide significant benefits including increased turns and same store sales.
Read More

Expert Investment Buying Tips for your Optimized Inventory Replenishment Inventory Investment Buying (forward buying) is a strategic part of the buying role that many companies don’t realize today. The truth: Investment Buying that is based on accurate demand forecasting and effective inventory optimization processes delivers significantly higher gross margins, better GMROI, and balanced inventory levels.
Buying and maintaining inventory is often viewed as a cost center and companies struggle with these 4 basic questions:

  • When do I buy?
  • What quantity should I buy?
  • When I buy, how can I balance inventory levels?
  • A vendor has offered a discount, how much more, if any, should I buy?

Read More

Is your Promotion Planning and Execution Process Out of Date?

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 and Repeat Purchases AND create all important Impulse Sales. You know impulse sales; they are all of those items you purchased that were not on your shopping list!

According to a recent study from The Nielsen Company, 42.8% of grocery purchases are sold on promotion, up from 40.8% a year ago. Drug stores, too, sell a significant portion of products on promotion, with 40.4% of sales linked to displays and/or features. Read More