Accurate forecasting is at the core of increased operational efficiency as it is key to accurately match resources, such as stock and personnel, with demand.
As sales fluctuate significantly day to day, precision with fresh food is only possible through accurate daily forecasting and daily replenishment.
Given tight margins spoilage reduction can easily add 25% to typical retail profits on food of roughly 2% of turnover.
To borrow a phrase from the famous baseball player Yogi Berra “It’s like déjà vu all over again.”
In challenging times, when opportunities to increase your revenue become harder to find, there are still ways to improve your bottom line.
Clients thinking of automating their replenishment processes often ask me what potential problems they should be alert to when changing their systems.
Many companies switch to automated replenishment to improve shelf availability and inventory turnover, and to make re-ordering more efficient.
In grocery retail, approximately 3.9% of revenue is lost due to stock-outs and it is estimated that the situation is even worse in specialty retail.
This article focuses on stock replenishment from the perspective of department store operations.