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Automated store replenishment for a leading global CPG manufacturer

Summary

The client’s existing store replenishment model required sales-rep or distributor bandwidth to ensure the right quantities were shipped to stores. This often led to stockouts and proved time consuming, impacting the productive man-hours of the sales reps. The client wanted to have in place a store replenishment solution that could handle multiple distributors and delivery models, enable replenishment at the right time, optimize cost of delivery, and reduce loss of sale.

Approach

We predicted store replenishment quantities for each item sold across the retailer expanse using a combination of internal shipping data, point of sales, inventory and invoice inputs at the retailer level. We did this by:

  • First, determining product level seasonality and underlying daily sales variations
  • This information was used to forecast expected future sales
  • Multiple forecasting techniques using time series trends, in combination with store and product related factors were considered
  • Relevant constraints were applied to forecast quantities such as the minimum order quantity required for a replenishment trip to a store, the total capacity of a store, and the threshold below which an inventory replenishment will be required

Key Benefits

  • Our solution provided an intuitive interface for over 500 users, with reports on sales performance and sell-in recommendations
  • Provided a single, comprehensive veiw of total business performance by Integrating information across retailers

Results

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Adherence to route plan

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Root cause for missed replenishments

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“Loss tree” that captures value lost at various stages of execution owing to non-adherence, Standard Operating Procedure

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