Retail
Business and Inventory ChallengesFor Retailers, out-of-stocks often translate into lost sales. As a consequence, most retailers are sensitive to maintaining very high customer service and in-stock conditions. This puts inventory planners under a lot of pressure, especially if they are caught between Store Operations who want outstanding customer service and high in-stock levels, and the merchants who own the inventory and sell through targets.
Retail is a very dynamic industry, with merchandise behaving very differently from its introduction to its transition off of the shelf. Moreover, there are many factors that drive retail demand, so understanding merchandise sales volatility and variability is critical in setting the correct inventory level.
Finally, most retailers must manage their inventories to maximize gross margin sales, while improving working capital performance. They need to make sure that right merchandise is on the shelves, yet inventories are small enough to minimize costs, spoilage and obsolescence.
ToolsGroup solutions also address many of the specific needs of retailers such as handling:
Retail is a very dynamic industry, with merchandise behaving very differently from its introduction to its transition off of the shelf. Moreover, there are many factors that drive retail demand, so understanding merchandise sales volatility and variability is critical in setting the correct inventory level.
Finally, most retailers must manage their inventories to maximize gross margin sales, while improving working capital performance. They need to make sure that right merchandise is on the shelves, yet inventories are small enough to minimize costs, spoilage and obsolescence.
ToolsGroup's Unique Capabilities
In this environment, ToolsGroup has the ability to deliver stable, reliable and very high service levels to stores and consumers, despite increasing pressure from product proliferation through regional assortments and different floor sets. In addition, we deliver improved short-term forecast accuracy, which is critical to achieving very high levels of service. Many ToolsGroup customers in retail are already obtaining 99+% service levels.ToolsGroup solutions also address many of the specific needs of retailers such as handling:
- Product perishable requirements
- Supplier and manufacturer lead times
- Transportation constraints such as minimum shipment order quantities
- Initial allocation quantities and follow on allocation/replenishment plans.
Successes
ToolsGroup is already successfully deployed at many retail customers, such as:- Dixons Group
- LA Duty Free
- Mercury Group
