Published on: October 23, 2013by Randy Fields, Bruce Christiansen and Sage Horner
Imagine generating the perfect order every time, delivering the right product to the right customer at the right location at the right time with the correct cost. Every point along the supply and consumer demand chain optimized so goods and information flow freely to people and places they are needed.
Now imagine not knowing how much to order or even where your orders are because your systems don’t have the capability of tracking them. Promoted items are out-of-stock, the slowest moving products are overstocked and every point along the supply and consumer demand chain is clogged with goods, data or both. In simple terms, think about how “unproductive” the inventory is throughout this supply chain.
PCG’s “Visibility” is now helping to drive sales, improve the customer experience and make the use of promotional funds more efficient, so the first scenario plays out much more often than the second. And while there are still too many retailers, wholesalers and suppliers in the dark, more companies are turning to tracking and trace systems to truly see where all of their products are at all time and using that information to better serve the consumer.
Here are just a few examples of companies using technology to gain visibility in their extended supply and demand chain.
• One “Best–in–Class” retailer had an ordering system that didn’t support ordering from multiple distribution centers. All products were being ordered without regard to how fast they were selling, or how much stocking space existed, creating inconsistent stock conditions and resulting in lost sales and overstocked slow moving items. The retailer implemented a new tracking and analytics system that reduced inventory quantities by more than 30%, reduced inventory costs by $125 million and lowered safety stock by 55%.
On the supplier side, a beverage company deployed new supply chain technology to extend its view of sales and inventory down to the “point of sale” at retail. By having Visibility to the actual sell-thru of product to shoppers, the company has reduced days of supply at all accounts, while increasing service levels to above 98% and ultimately grew sales. It also solidified trading partner relationships allowing the company to seamlessly introduce new products.
At Park City Group, we live in the trenches of the retail, manufacturing and distribution world so we know how to help you take advantage the opportunities and effectively address the challenges. We are experienced and understand the nuances of the business. Most important, we are committed to helping you sell more, stock less and see everything.
Park City Group provides robust, collaborative supply chain, merchandising and store level solutions for both retailers and suppliers that increase sales, improve operational efficiencies, such as shelf replenishment and merchandising, optimize inventory and reduce out-of-stocks. Our innovative solutions provide trading partners a common platform on which they can capture, manage, analyze and share critical data, bringing greater visibility throughout the supply chain, and giving them the power to make better and more informed decisions.
Enlightened retailers, wholesalers and suppliers are making significant investments in their ability to see and understand their extended supply and demand chains, and working to use that knowledge to build a 360 degree view of the shopper and their own operations.
Contact us today and we’ll listen to your challenges and then help you develop and execute a plan to Sell More, Stock Less and See Everything: Email us at email@example.com, or call (435) 645-2205.
- KC's View: