BY FRANK PALAZZO, SENIOR PRODUCT MANAGER
Q: How has the move toward consumer-centric assortments changed omnichannel retailers’ merchandising strategies?
FRANK PALAZZO: Consumer-centric assortments imply higher degrees of localization and faster reactions to market trends than ever before. Omni-retail adds complexity to the situation, where consumer expectations around customization and product availability are greater. To stay ahead of these trends, merchandisers need to view assortment management as an ongoing core function. It must continue throughout the year and be driven by consumer demand rather than a fixed schedule. This means constantly monitoring category performance and prioritizing reviews accordingly. Traditional merchandising strategies, such as SKU rationalization, have proven to miss important connections between assortment composition and sales results. Assortment planning activities must incorporate consumer tastes and preferences that can only be harvested from big data. Merchandisers are looking to leverage science-driven methods, such as systems analytics, to augment traditional decision-making previously driven only by experience and judgment. In addition, these tools must have visibility into all merchandise planning functions to produce the best result, including promotions, marketing materials, and supply chain.
Source: CIO Review (Start page 16)
In today’s digital era, advancements in technology are bringing seismic shift in consumer purchase behavior. Buyers access multiple channels to perform a purchase, leading to the requirement that all channels from online to brick and mortars come together for better seller and customer experiences. Although, many modern day retailers are Omnichannel, very few of them have an efficient supply chain.
“We specialize in the ‘exit strategy’ of inventory, signifying that, given a deadline or target profit, we utilize predictive analytics to match the exit of an item to its maximum profit,” said Kevin Stadler, 4R President & CEO.
Download the full PDF article below to learn more about 4R’s exit strategy of inventory.
Source: Nucleus Research
THE BOTTOM LINE
The Vitamin Shoppe deployed a solution from 4R Systems Inc. to improve replenishment and inventory performance for both its in-store and online business. Nucleus found that 4R’s Store and DC Replenishment Optimized Inventory Service allowed the specialty retailer to take profit margins into account in determining inventory replenishment.
- Increased in-stock availability of store product from 90 to 96 percent
- Upped inventory turns from 30 percent.
- Cut back order rates from 10 to 4 percent
- Achieved payback under the target date of two years
4R Team members put on their running shoes to participate in the Great Valley Corporate Center 5K. Our custom shirts say, “Running up your profits.”