rigafood2011replenishmentenufinalv-1-1-110922075647-phpapp02

7/31/2019 rigafood2011replenishmentenufinalv-1-1-110922075647-phpapp02

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Automatic Stock Replenishment in Retail

Its Impact to Sales and Losses

Riga Food2011 September 7-10


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Topic in Detail

Ill be talking about how using Automatic

Replenishment

Can help you sell more

Can help you get a bigger profit


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Why we talk about that at all

Because, unfortunately, customers buy what

they want to buy, not what we want them to

buy.


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How the customers feel about

the issue?

They havent brought what I need to buy today

again.

The Best before date on the item is not OK.

I hate having to go to some other shop to buy

what I havent got here.

I dont like the view of the empty shelves.

They dont love me!


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What the customers do about

the issue?

Ill make this shop my Number Two/Three

option (The lucky one)

Ill STOP visiting this shop altogether

(And youll never find out that)


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What the retailers do about the

issue?

They replenish inventory in retail outlet:

Externally (Manufacturers, Vendors,

Wholesalers)

Internally /Todays topic/


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Internal Replenishment

Mostly manually:

Not accurate (though often believed so)

Too subjective

Too time consuming


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Wider picture

You lose sales because of Out-Of-Stock

situations

You lose money because you overstock

You lose money in the unnecessary price

markdowns and clearance sales

And you lose customers!

What is a possible solution to that?


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Automatic Replenishment

It is not a panacea

But many of our customers who adopted it found

that it was exactly what they really needed

Weve got the right knowledge how to

implement it

Weve got the right tool


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New Vision are experts in the complex Retail IT systems.They can evaluate the problems impact on the businessprocesses, assign the correct task priority or just simply doconsulting via the phone. Thats the big advantage incomparison with the general helpdesk or call centercompanies.

Andrius emekeviiusRIMI Baltic" IT director

Customer testimonials


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The right tool

LS Retail is the leading provider of end-to-end solutions for

the Retail and Hospitality industry.

LS Retail is the most flexible solution on the market that

can be very fast adapted to the changing company needs.

According to customer surveys, using LS Retail as the

platform for their solutions, we can help retailers achieve30% more ROI than with alternative platforms.

End-to-End Retail Solution

based on Microsoft Dynamics


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LS Retail Coverage

1.900 customers

35.000 stores 77.000 POS

130 Countries

33 Languages


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LSR Replenishment

How does it work?

Different type of retailer:

Food / Fashion / Electronics / DIY / Restaurants /

Different item types:

Fast/ Slow moving

New/ Seasonal/ Regular

Different ordering processes:

Centralized/ Decentralized

Different delivery processes:

Vendor Store/ CWH Store/ Vendor CWH Store


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Calculation methods

Average

Usage

Manual

Estimate

Stock

Levels Like-for-Like

Estimatedusage per day

Sales History Same year Past year Seasonal

calendar

Usage per day

Sales HistoryAdjustments

Zero Days

Minimum Maximum Replenish soldstock


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Out of Stock Days

Example: The period is 10 days

Result:

15+10+5+10+10+10 +10+0+0+0 = 70On Average: 70 / 10 = 7 pieces per day

Without Out Of Stock: 70 / 7 = 10 pieces per day

Day Daily Sale

1 202 103 54 155 106 10

7 108 09 0

10 0


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Forward Sales Profile

Example: Workday = 15.08.07 Back Period= 6W Forward Period = 4W

Result: 20+30+30+50+50+30 / 6 = 35

60+100+50+70 / 4 = 70

Calculated Forward Factor:70 / 35 = 2.0

Weeks from todaysdate

Unit SalesLastYear

Unit SalesThisYear

-6 20 30-5 30 35-4 30 35-3 50 55

-2 50 36-1 30 40+1 60+2 100+3 50+4 70


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Summing up What

Before - is a modern ERP going to bring value?

Now - WHICH TOOL TO CHOOSE?

With Automatic Replenishment you will sell more,

you will lose less and you will get a bigger profit.


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Summing up What in Detail

You will reduce the number of stockouts!

You will increase the number of items that meet the

companys in-stock goals!

You will reduce amount of time spent on replenishment!

You will sell more!

And you will create a better

shopping experience for you

customers!


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Summing up Why and How

There arent many IT companies in Europe with

190+ employees, 90% of whom are dedicated for

Retail.

We deeply specialise and our customers love it!


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In Retail IT since 1993

In Navision and LS Retail since 1999:

MICROSOFT Gold Certified Partner (5

competencies)

LS Retail Gold Certified Partner

120+ NAV customers

Implementations in LT, LV, EE, UK, RU, UA, CZ, PL,

RO, SE

The right knowledge: Facts

about the company


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Call to Action

Lets talk

Free diagnostics and customer-tailored

presentations

Visit www.new-vision.com

Visit www.lsretail.com

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