Impact 21 provides “off the shelf” solutions for the critical areas of Inventory Management & Optimization, Loyalty/Category Management and Operations/Loss Prevention. With current performance analysis in hand, our team provides insights and training as we prepare organizations to build operational and analytical competencies internally. Clients using Impact’s solutions and services have seen increases in sales and margins, right sizing of inventory through decreased days on hand and lower excess and enhanced knowledge of their customers to provide targeted, relevant promotions.
Inventory Management is a Huge Opportunity to Foster Retailers
Excellence in inventory management is the mark of the successful retailer. Managing inventory efficiently results in a competitive edge for your business. Controlling and managing your inventory at item level provides a great advantage, but where do you start? There are many moving pieces to the process of Inventory Management & Optimization
Impact 21 brings forward data visualization, insights and analytical competencies to organizations for improved inventory management and optimization. We do this through a combination of store level training, solutions that provide visibility and proprietary models that predict optimal reorder points at the SKU/Store level. We provide support and position your company to significantly increase profitability through inventory optimization.
Inventory Management Optimizer (IMO)
The ability to effectively manage inventory at item level has evolved from a “best practice” into a “vital practice”. Retailers must gain control of inventory on the retail floor to leverage critical opportunities in reducing costs, enhancing customer yield, and generating cash. Controlling inventory in the store optimizes the delicate balance between in-stock inventory levels and out-of-stock conditions and reduces working capital deployed.
To manage excess capital currently tied up in unproductive inventory, we start with one basic fact: inventory levels must simply meet sales demand. It seems so basic, but what we find is that too many retailers are accepting high inventory levels and tying up working capital as a result.
IMO is an analytics model, based on SQL server and Qlik front-end, which provides reporting for your inventory performance at a granular level. This is a look at each store's performance at item level and provides detailed analysis and insights on sales, purchases, days on hand, excess inventory and out of stocks on a weekly basis. By providing visibility to this information at the right levels in the organization, opportunities to reduce inventory, enhance store training and / or identify vendor opportunities is highlighted.
Clients using our IMO have seen sales improvements of 1-3% due to better in-stock positions, lower days on hand in all categories, and significantly lower excess inventory and carrying costs.
Impact/4R – Profit Optimized Inventory
We provide retailers with services designed to maximize profitability by applying sophisticated retail and supply chain predictive analytics. These scientific algorithms allow retailers to predict the most “profit optimized” reorder points or orders for all items in all stores and puts profit at the core of inventory management. These reorder points and/or orders are then integrated into the retailers’ current ordering solution and virtually become an item level, Computer Assisted Ordering (CAO), predictive approach to managing inventory.
Impact/4R is designed for retailers of 150+ stores who are managing at item level and are looking to further refine their existing forecasting and replenishment activities. Clients utilizing Impact/4R are seeing improvements of 50-300 basis points in profits, improved in-stocks at stores and DCs, an improved customer experience and enhanced supply chain expertise.
Customers currently leveraging Profit Optimized Inventory include Family Express, Hess Express, Crate & Barrel, Sur la Table, Pep Boys, and The Vitamin Shoppe.