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Monthly Archives

August 2013

Do You Make These Mistakes with Slow Demand Products?

Slow demand 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 managed incorrectly. There are two key pieces that must work together for a retailer to win with slow movers: the demand forecast and how the supply chain software uses the demand forecast to manage the inventory. The results of poor buying are low turns and loss of capital for other product.

Slow Demand Product Forecasting Myths

“How do you forecast slow demand products?” The same question was posed to me in three different meetings at NRF this year. Many software companies differentiate their demand forecast capability from their competition by highlighting their skill in forecasting slow product demand; at the same time, they strike fear into the hearts of retailers by highlighting retail losses delivered due to poor demand forecasting of slow moving products. The key to this discussion is to not get trapped into a no win conclusion. More than a great Demand Forecast is needed to attain winning results with these product groups. Like the story of the ‘Tortoise and the Hare’, Slow demand products are part of any assortment and can be big winners.

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You Can Laugh At Holiday Sales Worries--If You Follow This Simple PlanThe dog days of summer may seem too early for retailers to look at their seasonal indexes for holiday season planning; but consider this, 32% of e-commerce sales in 2012 were generated between October and December. Since this is the season that can make or break your results for the year, Omni-Channel Holiday planning can’t start soon enough.  Retailers must prepare their Seasonal Index strategies now to be ready for the most important shopping period, the Holiday Season.

Do Your 2013 Holiday Sales Plans include the Dramatic Fiscal Week Changes?

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Could #Sharknado be Chewing Up Your Lead Time ?This is an excerpt from,” Did Sharknado Chew Up All Your Lead Time?”,” found in the August 2013 edition of Retail Value Chain Federation’s monthly newsletter, RVCF Link. To see the article in its entirety: RVCF LINK. It is part of an ongoing 5 part series on Demand Forecasting and Inventory Replenishment.

Lead Time is a large factor in your supply chain performance. Like a shark chewing voraciously, Lead Time variance chews up profits in multiple ways. A shorter than expected lead time causes overstocks with additional carrying costs, theft, and potential damage issues. A longer than expected lead time creates out of stock service issues or additional product and freight costs and devours customer opinions and bottom line profits.

Poor lead time performance also “chums” your supply chain with a barrage of activity; e-mails, phone calls, and impromptu meetings drain organizational energy and productivity while increasing stress levels.
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Why Your Inventory Replenishment Costs will Explode this FallThe speed of business operations today is outpacing the level of insight and the execution capabilities of legacy inventory replenishment software. In the new omni-channel marketplace, sales and market behavior can, as they used to say ‘change on a dime’, today we say ‘change on a tweet’. Companies are looking for different processes and new systems to increase their view of inventory replenishment activities and make better decisions to support their customer’s expectations, their market share, and profitability.
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