Major challenges to retail profitability:
- Maximizing true potential of your inventory
- Determining inventory levels to reduce lost sales and obsolescence
- Minimizing inventory costs and lost margin while improving in-stocks
Discover breakthrough inventory technology
4R applies a proprietary algorithm to retail inventory. This enables retailers to make the right inventory decisions throughout an item’s life. By profit optimizing decisions such as how to buy, when to do so and how much to keep in each store or distribution center, retailers are able to profitably reduce lost sales while simultaneously providing better service.
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The retailer as investor
Profit Optimized Inventory starts with the notion that retailers are investors – they invest in their inventory and the purpose of that is to make profit. Existing systems don’t directly answer the profitability of these decisions. They are designed to help retailers manage their inventory and supply chain to meet various KPIs such as turn, in-stock rates and service levels. As a result, existing legacy systems leave it to the retailer to use a hit-or-miss approach and experiment on their business while trying to find the inventory levels that are most profitable.
4R’s retail game-changing approach breaks the never-ending cycle of inventory management and institutes a better inventory model that drives the most profitable outcome based on some of these basic assumptions:
- Profit is the driving key performance indicator
- A retailer’s inventory is their investment portfolio
Achieving Profit Optimized Inventory
The key to Profit Optimized Inventory is an economic model that directly measures the cost of holding inventory and the frequency of purchasing each item. 4R Systems’ technology minimizes inventory costs and lost margins while simultaneously improving in-stocks. As a result, Profit Optimized Inventory makes more money for retailers by providing customers with better service levels and a predictable in-store experience.