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You just filled the stores and know they won’t order for weeks, but here comes millions in inventory that will sit until the orders start to trickle in again.

Companies with tens of thousands of products in hundreds or thousands of locations have special challenges. The complexities of the retail supply chain makes it very difficult to align inventory levels with product availability and demand fulfillment needs—most lack the ability to line up DC inventories with their stores orders—causing out of stocks in the stores at the same time chain inventory is bloated.  The Blue Ridge CLARITY Multi-Echelon application helps address the particular complexities of an environment with multiple tiers of demand and locations.

Make Sure Each Location Has the Right Inventory

Retailers, distributors and manufacturers know well how difficult it can be to manage inventory across a large number of locations…where one location is dependent on another for stock and where the precision of the demand signal is paramount. Companies must make sure that every item customers want is available. All too often, items just aren’t available for the stores in need, or the DC is chock full when the stores are stuffed. That leaves you with shortfalls in one place, excess in another and a situation that negatively impacts cash flow and customer service.

Better manage across locations by:

  • Defining the proper demand signal for Distribution and suppliers in the supply chain
  • Aligning inventories and supply plans precisely with demand occurrence
  • Reducing cycle stock and safety stock levels to free up cash without jeopardizing service
  • Eliminating customer service failures that happen even with adequate inventory within the chain

Experience Increased Sales

CLARITY Multi-Echelon assures you have the right amount of items in the correct locations, on time and only when needed. Our SaaS application aligns DC availability with store need with daily precision, resulting in a better use of budget funds, and an increased level of consumer confidence.

Benefit by:

  • Understanding cash allocation, gross margin, sales, inventory and more, to effectively plan and manage the business
  • Improving store sales and image by increasing the accuracy and effectiveness of multi-echelon inventory management:
  • Freeing up cash by reducing cycle stock and safety stock levels at superior tiers of the supply chain
  • Collaborating with suppliers using precise demand signals based on how and when you buy
  • Reducing supply chain costs with precise and logical demand and supply data, enabling the ability to communicate and use data enterprise-wide

Leverage Sales and Ordering Methodology

With CLARITY Multi-Echelon, supply-chain need is projected based on both sales and ordering methodology, including joined-order technique and need-based (rather than only fixed) order schedules. Replenishment is precisely timed—to the day—based on this demand understanding to assure fulfillment without the guesswork that requires additional inventory.

In a multi-tiered supply chain, it’s critical to understand the ordering logic of the lower tiers—a methodology that provides the greatest accuracy in providing a forecast of future demand. What the stores sell is an input to the overall process—but what they order is the most important factor. If DC demand is stores sales from the past, rather than what they’ll order in the future, DC inventory gets out of alignment for the following reasons:

  • Just because a store sold an item doesn’t mean they need to have it replenished
  • Basing replenishment on store sales means DC demand doesn’t consider overstock or out-of-stock situations in the stores
  • Timing of sales is difficult to predict with slow-moving items

CLARITY Manages comprehensively by:

  • Accurately evaluating and discerning demand type by SKU/loc, at the consumer (e.g., site, store & wholesale) level:
    • Stochastic (fickle, consumer) demand
    • Lost Sales demand
    • Causal (promotional, etc.) demand
    • Dependent (kit) demand
    • Deterministic (predictable, simulable) demand
  • Precisely understanding and predicting inventory stock status by SKU/loc at the consumer level
  • Daily granularity of SKU-level, time-phased demand and supply planning at the store level and higher in the supply chain
  •  Effectively projecting order triggering and building technique, along with order constraints for each tier of the supply chain
  • Completely accumulating the order projection data as a forecast of forthcoming demand from subordinate tiers to the superior tiers

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Learn, share, grow ...

Blue Ridge Buyer Campus

Clarity FAQ of the Week: How do I see a range of service goals by buyer? Get the Answer.
Free Book Offer: 10 Steps to a World Class Inventory Investment Team Request a Copy
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