The holiday shopping season is right around the corner and for many retail owners, this can be a stressful time for many reasons. There are larger crowds, a need for extra staff, the general strain of the holiday hustle and bustle and the guessing game of how much extra inventory you’re going to need in your store to accommodate those crowds. [Read more…]
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RIS News Editor-in-Chief Joe Skorupa Interviews 4R’s CEO Kevin Stadler NRF’s 2017 Big Show in New York.
Learn how the company’s newest solution uses prescriptive analytics for profit-optimal inventory assortment. 4R will present its solution at NRF’s Annual Expo, Retail’s Big Show; Offers Industry’s Only Profit Guarantee.
4R invites retailers to meet with their team January 15-17, 2017, at booth 1315 to learn how the company’s newest solution uses prescriptive analytics for profit-optimal inventory assortment.
BERWYN, PA, January 11, 2017 – 4R Systems, Inc., a leading provider of advanced omni retail inventory and supply chain solutions, announced its next generation assortment optimization solution for omni retail chains. The company uses science and technology to help retail chains maximize profit from their omni retail inventory investment.
Many retailers use predictive analytics to determine assortment across their retail chain. 4R’s solution uses prescriptive analytics. It uses sophisticated demand decomposition logic based on true demand, not just past sales results. This equips a retailer to identify winning SKUs, prevent negative effects such as cannibalism and halo, as well as correct for stockouts. 4R’s prescriptive analytics move beyond showing what happened in the past, and beyond predicting future inventory activity. The solution accurately prescribes what, when, and where each SKU should be in the retail chain. 4R manages over $45 billion in retailers’ revenue and creates over 8 billion reorder points annually.
Mark Garland, 4R’s Executive Vice President Sales, Marketing & Solutions said, “4R’s assortment optimization solution is a retail game changer. Retailers have been pressured to pay exorbitant amounts of money for enterprise solutions with no assurance of increased profit—until now. 4R offers an Inventory Productivity Analysis. It shows in advance how much profit increase the retailer can expect. We always hit our target, or exceed it.”
“4R’s assortment optimization gives retailers the results they want,” added Frank Palazzo, Senior Product Manager for 4R. “Of course this solution solves inventory management challenges, but it doesn’t stop there. The end goal is to maximize profit for every SKU in a retail chain, so we crafted a solution that removes the guesswork and delivers more profit.”
The solution helps retailers increase profit in these ways:
- It identifies winning SKUs, even those not offered in current assortments.
- It quantifies the benefits of key merchandising decisions, increasing localization and reducing SKU proliferation. Clients can see in advance the additional profit from increasing the assortment localization and select the level appropriate to its business.
- Visualization tools enable clients to control assortment size based on revenue, profit, SKU count, space goals or other business constraints.
- It eliminates the need for third party measurement tools by automatically tracking rollout and performance of assortment changes during a pilot test as well as full deployment phases.
- It continually monitors category performance to trigger re-assortment if performance lags as well as on a scheduled basis.
- When combined with 4R replenishment, 4R’s assortment optimization requires no additional data feeds and can calculate the impact of assortment changes on inventory cost.
Like all solutions offered by 4R, assortment optimization is cloud based, requires no capital investment, no additional staff, and minimal IT resources. Deployment and ROI can be realized in a few months, not years!
Retailers can learn more about 4R’s Next Generation Assortment Optimization Solution for Retailers at the NRF’s Big Show, January 15-17, 2017, at booth 1315. Qualified retailers can obtain a free NRF Expo pass by visiting https://4rsystems.com/nrf/, courtesy of 4R Systems.
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.