Reducing Inventory Costs by 13% by Accurately Predicting Demand for a Canadian Retailer
Retail Demand Management Solution As the world of retail distribution continues to transform, customers demand faster delivery of products. To meet the ever-evolving needs and demands of customers, retail companies will need to bring precision to every point of the supply chain. This is where the real power of leveraging demand management solution comes into [...]
Retail Demand Management Solution
As the world of retail distribution continues to transform, customers demand faster delivery of products. To meet the ever-evolving needs and demands of customers, retail companies will need to bring precision to every point of the supply chain. This is where the real power of leveraging demand management solution comes into play. Demand management can help retail brands to build a reliable forecast, improve product forecast accuracy, increase supply chain scheduling, optimize labor management, and create efficient cash flow management.
The client is a retail company based out of Canada.
Our client, a retail brand, faced significant losses due to overproduction. Besides, they faced difficulties in efficiently managing supply chain processes. In order to prevent supply chain disruption, they wanted to identify, forecast, and fulfill product demand based on the market needs. They chose to partner with Infiniti Research to leverage their expertise in offering demand management solution.
By leveraging demand management solution, they also wanted to:
Reduce supply chain costs: The client wanted to identify supply chain challenges and find out which processes cost the most and areas where revenue is being used inefficiently. By doing so, they wanted to restructure their supply chain structure and reduce supply chain costs.
Optimize inventory: By leveraging Infiniti’s demand management solution, the client wanted to review inventory levels in real-time and stock up the right number of products.
Minimize risks: By accurately forecasting the product demand in advance, the client wanted to better plan and make the right decisions about budgeting, sales, marketing, raw materials, and production. Besides, they wanted to minimize supply chain risks, improve distribution planning, improve supplier relations, and boost customer experience.
The experts at Infiniti Research followed a three-phased approach that involved:
Market research engagement to analyze industry transformations and developments in the Canadian retail market.
Inventory forecasting solution to forecast the target stock level to meet the potential market demand.
Demand planning engagement to predict demand patterns based on historical sales data, customer orders, and market indicators.
By tracking real-time inventory data, the experts at Infiniti Research helped the client to improve visibility across the supply chain. Also, by leveraging demand management solution, the experts helped the client to optimize functions such as forecast-to-stock, order-to-cash, prepare effective production schedules, and optimize inventory levels to significantly lower operating costs.
Besides, by thoroughly analyzing the client’s core areas such as storage strategy, supplier relationships, and the speed of moving supplies, the experts helped them to identify processes that cost the most and areas where revenue is being used inefficiently. This helped the client to improve these core areas and produce significant cost savings. Also, the client was able to identify cost-effective solutions for transportation, gain access to better inventory management, and speed up transportation processes. The company was able to reduce inventory costs by 13%, and thereby enhance profits by 21%.