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Shelf-Centered Collaboration
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i2 Shelf-Centered Collaboration
Effective shelf-centered collaboration drives profitable revenue growth by aligning inventory in the right stores using point-of-sale (POS) and sell-through data from the channel. i2 Shelf-Centered Collaboration reduces inventory and associated costs—such as price protection, spot promotions, and markdowns—while decreasing lost sales due to improved product availability.
Key Features
- Predictive and responsive out-of-stock detection
- Comprehensive root-cause analysis of out-of-stocks, including:
– Ghost/phantom inventory
– Forecast error
– Inventory and ordering parameters
– Replenishment execution - Predictive display and promotion compliance
- Comprehensive inventory and sales reports that analyze:
– Inventory, sales, and shipment trends by store and distribution center
– Slow-moving and non-productive/excessive inventory items
– Inventory performance of new and end-of-life items - POS-based forecasting
- Demand-shaping playbooks
- Synchronized replenishment
Key Functions
POS-Based Forecasting to Increase Accuracy
By using current POS or sell-through data, brand owners can identify and react to market trends at the earliest possible opportunity and increase predictability of both demand and inventory needs. This information helps brand owners better balance inventory across slow- and fast-moving stores, improving sell-through rates to consumers immediately. With this type of forward-looking consumer insight into their product categories, brand owners increase credibility with their retail partners.
Store-Level Monitoring to Diagnose Store Performance
While aggregate POS data can help brand owners understand the “mega trends” affecting their product categories, this data fails to explain declining product sales at the store level. In fact, declining sales across multiple stores are typically caused by a number of store-level discrepancies—such as competitor promotions, forecasting errors, or production or stocking problems—not captured by high-level POS analyses. By performing store-level POS studies and root-cause analyses, brand owners gain powerful information that helps them improve the effectiveness of specific channel tactics.
Synchronized Replenishment to Drive Inventory Alignment
By basing safety stocks, replenishment plans, and purchase orders on current, real-time consumer needs at individual stores, brand owners can respond to changes in demand at the earliest possible opportunity. This reduces the financial risk associated with weeks of excess inventory and enhances the brand owner-retailer relationship.
Demand-Shaping to Plan Local Promotions Effectively
Brand owners can take an active role in shaping demand for products experiencing declining sales. By performing a root-cause analysis, brand owners can determine whether overall demand is down for a particular product, or if sales are off only in a certain regional distribution center or individual store. Once the root cause is identified, brand owners can implement demand-shaping actions—such as a promotion, advertising campaign, or gift-with-a-purchase—to make immediate corrections. This empowers brand owners to take a proactive role in influencing consumers’ purchasing decisions.
How can we help you?
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