In a previous blog post, we discussed how demand planning is crucial during a crisis. Demand planning is the stabilizing anchor in a volatile supply chain. Demand planning may sound like old technology, but it is the foundation of a profitable supply chain. However, not all solutions are created equal.
So what demand planning solution is right for you? It depends. There are a number of factors to consider before making a decision. While researching the various options, you should evaluate solution providers to see how they perform and compare the results. At a minimum, each solution provider should offer a pilot or trial so your retail company can see estimated profit improvement before making any final decisions. Once a trial is conducted using your stores’ data, you can see what actual results would be for each solution provider to determine value.
There are at least four metrics to consider when evaluating results:
- Profit Margin
- In Stock Percentage
- Inventory Costs
To see how 4R measured up to competitors, we did an experiment with our own solution. First, we collected historical sales data from customers before they used 4R Systems. Second, we looked at results from their previous vendor’s solutions. In order to make sure we were comparing apples to apples, we used the same data and timeframe as the previous vendors, and ran the numbers through our system. Here’s what we discovered: In nearly every metric listed above, 4R outperformed all five competitors.
- Sales: 4R provided higher sales than competitors by up to 2.5%
- Margin: Margins were higher than competitors by up to 1.3%
- In Stock%: 4R improved in stock more than competitors by up to 1.5%
As you can see, 4R helped increase sales, profit margin, and in-stock percentages. In addition, in most cases, 4R also reduced inventory costs. When deciding which inventory solution is right for you, conducting an analysis this thorough may be daunting. At 4R, we do this every day to deliver maximum profit to our retail clients and we are confident we can help your retail stores improve. Why spend time talking about it when we can actually show you?
See how 4R’s demand planning solutions can help you navigate a volatile supply chain and increase profit in the process.