There are many people working in supply chain departments of retailers that know what I mean by this. How often is your retail business messed up by those dreaded marketing guys coming up with some promotion or another?
Just when you think things are under control comes another marketing period and many great ways of messing up wonderful forecast and in stock position. Not only does this create huge spikes in demand for the promoted items when they stop we are left with masses of stock that will take ages to sell at the higher price.
The supply chain professionals spend most of their life chasing to keep up with this never-ending round of items going on promotion, coming off promotion, buy one get one free, advertising etc. What makes it worse is that all this pain is self-inflicted!
Some smart retailers moved to every day low pricing and a great sigh of relief passed through the supply chain community, stability at last. The trouble was that this only worked for a few retailers and for a short period of time until one retailer breaks rank and starts to promote again… suddenly the floodgates open and everyone is at it again. All hell breaks out in supply chains around the world.
Then along comes RELEX, a inventory optimization software solution, that is capable of managing the chaos that exists around promotions and takes away the daily grind of the remainder of the inventory management process.
It is not magic, it is science and great technology that enables the management of vast amounts of data in a timely, understandable and meaningful manner that enables retailers to gain huge benefits from getting their inventory and supply chain optimized at center and stores maximizing the opportunity created by the promotions and advertising. Now the smart guys in marketing can do their best to create chaos and only the poor guys in the stores will suffer!
Stay on top of the latest trends in retail planning
Subscribe to receive a monthly digest of our most valuable resources like blog posts, whitepapers and guides.
Other blog posts
- Change Agents in the Age of Living Retail: The Power Shift
- The Age of Living Retail: Staying Ahead when Change is the Only Constant
- Recapture Sales from Digital Players by Improving Out-of-Stocks
- MIT Research: The Effects of Dynamic Safety Stocks on Inventory and Service Levels
- Future-Proof Your Technology Strategy