Article published by SupplyChainBrain
Client Retools Inventory Strategy and Reaps Profits Across Categories
Challenge: 105-location hardware store retailer identified $5 million in excess inventory and $2 million in missed sales.
Solution: 4R’s intelligent inventory solution analyzed historic sales, created future demand forecasts, and provided data-driven insights to rebalance inventory counts to ensure the most profitable sales. This enabled the client to remove the influence of manual and emotional decisions from their ordering procedures. They saw improved sales in various product categories, achieved lower inventory levels, and empowered employees to focus on more strategic tasks. The client especially liked the improved look and feel of the stores – shelves were stocked with the right amount of inventory at the right time, according to brand and product. The use of data and the success they enjoyed changed their way of thinking about ordering.
Results: The client improved net profits by 50% in just over a year.
About 4R: The 4R suite of solutions and services helps businesses manage inventory as an investment. We focus on the high-value processes for optimizing supply chain and inventory management, in these core functions: Demand Planning, Replenishment, Assortment, Allocation, and Markdown. Our Profit Optimized solutions take full advantage of advanced analytics, which leverage these improved predictions and promise to deliver a profit optimal improvement across your supply chain and merchandising decisions.