Acceleration of Benefits Realization to GMROI

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According to many industry experts, many retailers, wholesales and their brands vendors now face some challenging threats, from shifting sales trends and seasonality, changing customer behavior, higher pressures on competitive and effective pricing and promotions, and increased supply chain instability, to financial limitations to cover operational expenses and unplanned investment. But they also have significant strengths, which these retailers and their vendors, working in collaboration, can leverage to overcome those challenges faster and more effectively!

To be part of the solution, we offer an Acceleration of Benefits Realization to GMROI program to help you overcome those threats faster and more effectively, and help retailers achieve that in close collaboration to their vendors, by leveraging state of the art but clearly focused AI technologies and Data Science algorithms and services, in a way that is achievable under limited investment scenarios. In this summary, we outline the main fundamentals and basics of this.

The following are some of the main challenges we have identified retailers and their vendors face, where we can help!

Sales shift adds more uncertainty

Uncertainty on predicting sales trend and seasonality, which are now shifting from what used to be in previous months and even previous years, making it more difficult to anticipate demand and inventory needs and prepare for proper product availability and purchases.
Lack of ability to quickly detect rapid shifts in products demand, which is now happening more often than ever, leading to lost sales due to increased demand causing increased out of stocks, but also decreased demand causing over stocks.
Lower sales caused by having less customers visiting the stores.
Lower sales transactions due to lower customer's purchase power, leading to smaller average ticket.
Uncertainty on changing customer's purchase behaviors and purchase frequencies, making it harder to redesign promotion strategies and planograms that meet the new customer needs.

Supply Chain threats

Long or uncertain vendor lead times.
Insufficient product availability from supply sources.
Inventory out of stocks across the supply chain, on both the retailers locations and their vendors.
Inventory shortages during promotions and special events, causing lost sales and an negatively impacting customer satisfaction and loyalty.

But they also have some valuable strengths that will help them overcome these challenges.

Leverage Strengths

Category Management skills to help overcome challenges.
Customer brand recognition and desire to continue buying from their stores and e-commerce sites.
Close and intimate relationship with vendors with understanding of their products and markets.
Talented teams with effective operational systems, with significant valuable data and knowledge.

At the same time, these challenges create a great window of opportunity for change, innovation and improvement to gain business benefits, and competitive advantage.

Overcome Weaknesses

Insufficient analytical capabilities to quickly identify shifts on demand at the item and location levels.
Insufficient demand predictive capabilities to anticipate new trends and seasonality.
Insufficient and inaccurate ordering automation across the supply chain to plan weeks or even months ahead and collaboratively with vendors to improve supply and prevent shortages in stores, distribution centers, or both.
Insufficient ordering automation to plan ahead collaboratively with vendors to minimize out of stocks and over stocks.
Insufficient analytical capabilities to quickly identify shifting shopping trends in product demand.
Insufficient collaborative supply chain levels of automation at the stores and/or at the distribution centers to collaborate among buyers, category managers and their vendors with days, weeks or months before orders to vendors are placed.
Insufficient ability to identify and negotiate the need for alternative supply options with alternate vendors and wholesalers when primary vendors run out of stock.
Difficulty to identify best products to include in promotions according to the potential impact on revenue and profit gains.
Difficulty to identify which prices are best to maximize revenue or net profits.
Difficulty to plan and analyze different scenarios of reshaping offering vs financial impact and store and warehouses space allocation impact.
Insufficient ability to identify adequate alternate substitute products.
Lower or more limited investment capabilities.
Less cash for vendors terms or internal expenses.
Increased debt to vendors and other third parties.

Seize the Opportunities

Gain market lost by other competitive retailers by offering more profitable and at the same time more attractive regular prices.
Offering more effective and appealing promotions to customers.
Offering higher product availability than competitors.
Reshape product offering.
Increase collaboration with key vendors to:
Improve collaborative supply chain improving product availability while reducing out of stocks, in the stores as well as in multiple warehouses and distribution centers.
Better negotiate products purchasing and payment terms with vendors to maximize the utilization of the more limited cash.
Better project, design and plan joint promotions, sharing calculated risks and allowances fairly and jointly.
But to better leverage those strengths and effectively turn those opportunities into business benefits, retailers need to be more prepared than ever. And this can also be achieved by overcoming some important weaknesses.

So, how can JuiceMantics help you?

Team

By helping you promptly get the most “juice” out of your business with increased customer satisfaction, with a special highly adaptive program that will suit each retailer's, wholesaler's and brand's specific needs:

A very focused smart application service that addresses only the specific needs you have.
With no need for long-term acquisition of perpetual software licenses, databases, frameworks, or support, but just the specific ones needed, and for a time period that is reasonable to enable achieving your business goals, either short term, mid term or long term, on each business case.
With no need to replace your existing software, technologies or system applications.
Quick results based on minimum information: only basic sales and inventory data is needed to obtain great results!
With a mutual shared commitment model to achieve business results in a shared benefit model.
In any (one, multiple or all) of these areas to choose from:

Adaptive Seasonal and Trend demand forecasting by category item hierarchy, region, store format, item, store, warehouse, and distribution center, identifying new trends and seasonality, as well as outlier shifts in demand.
Collaborative multi-echelon Supply Chain Optimization to project and better predict seasonal and trend demand considering recent trends, and tailor inventory to demand all across the extended supply chain, from stores, web sites, warehouses, distribution centers and even vendor’s locations.

Regular Price Optimization to help you find the best prices to maximize profits and revenue.
Promotion Optimization to help you design better promotions and maximize promotional effectiveness and customer attractiveness, combining promotional price optimization with market basket analysis segmentation.

Market Basket Analysis to analyze your sales and product correlations at the typical transaction level, to classify products affinity and likelihood to be acquired together to help you find the best product mix on each store and customer-facing locations.

Assortment Product Catalog Variety Planning, allowing to define and plan any number of assortment factors like size, flavor, brand, generic, prescription required, salinity, acidity, customer main usage, or any other assortment factors at multiple levels of the item hierarchy up to the item and SKU level.

Category Management to define and monitor goals, benefits, initiatives, owners and tasks needed to achieve the business benefits.

Automated Exception Alert detection with user-defined exceptions alerts and user defined priorities for each type of exception detected, including rapid shifts in increased or decreased demand, out of stocks, over stocks, low inventory turnover speed, average ticket and more.

Cash Flow Maximization to identify projected cash flow needs and balance cash needs with investment accounts terms helping anticipate and avoid projected cash shortages, while balancing to prevent having more cash than needed in certain accounts.

We want to work with you to find the best way to help in each of these specific needs you might have. We provide the most advanced AI applications through specialized services combined with scientific data analysis, predictive and optimization algorithms. We have done that before with great results.

Let us work and partner with you to collaborate in achieving your goals, making sure that we focus on obtaining the business benefits together with your teams.

The JuiceMantics team.

contact@juicemantics.com