Replenishment- The next frontier for Revionics
Over the next couple of weeks, Revionics will be announcing RAPS Replenishment, a fully comprehensive inventory management, forecasting and order optimization system. We intend on demonstrating this system to prospective customers at the annual NRF show in New York on January 11th and 12th. General Availability (GA) for customers will be April 1, 2010. The completion of this module will be a significant accomplishment for our development team.
Why is Revionics focusing on Replenishment?
As many of you know, we have 100+ retail customers already. Many of them are increasingly focused on finding new ways to free up working capital tied up in non-value adding inventory while simultaneously reducing out of stock situations, especially those out of stock situations tied to promotional activities. With our integrated forecasting system, Revionics is uniquely qualified to help retailers address both issues.
The RAPS Replenishment system has three primary components:
- Inventory Management: This module maintains store level perpetual inventory. It offers a fully integrated receiving system capable of tracking in-bound shipments from the warehouse or from DSD vendors. The system will also integrate with Point-of-Sale (POS) systems or back office systems to monitor sales on either a trickle feed or periodic basis. The system also supports physical inventory counting as well as computer directed cycle counting.
- Forecasting & Optimization: This module generates optimal order quantities based on integrated forecasting, inventory balances and a real-time understanding of order status.
- Order Management: This module provides capabilities to produce Computer Generated Orders (CGO) or Computer Assisted Orders (CAO) where the user can review and modify order quantity before submission. The system will also support manual order entry through customer defined order templates. The system can consolidate or parse orders to separate vendors. It tracks order status, and manages changes to orders.
The system will offer some very exciting functionality such as:
- Allocation from Distribution Centers-this will allow retailers to plan and distribute orders to store locations based on that store’s capabilities to actually sell the product.
- Vendor Order Optimization-this will allow retailers to “buy in” on expiring promotions, or in advance of price increases. It will support bracket purchasing, always trading off how much inventory is needed when compared to the financial incentives to buy and hold more inventory at store level.
Each of the above modules can be deployed as a complete suite or can be integrated with other modules that retailers may already have installed. The system can be deployed with Revionics’ price, promotion, and markdown optimization modules or as a standalone system.
RAPS replenishment is designed to be highly scalable, serving retailers of all sizes and lines of trade. It will be deployed for customers in a Software-as-a-Service (SaaS) fashion where Revionics manages the hardware and software infrastructure for clients.
What are the benefits of RAPS Replenishment?
- Reduce Store Level Inventory by 20-30%
- Reduce Lost Sales due to Out of Stock
- Reduce Shrink and Spoils
- Improve Stock Rotation
I am very excited about this module because it is a huge complement to our existing Full Life Cycle Pricing capabilities. Our role in helping our customers is expanding beyond defining the right price, promotion or markdown for our customers. We are now leveraging our best in class integrated forecasting engine to do even more good within our retail clients by helping them to better manage how much inventory they need on hand to satisfy consumer demand.
Revionics is uniquely qualified to help retailers with replenishment because our system can accurately do what others simply cannot do. We can account for demand influencing factors such as:
- Price, promotion, markdown
- Seasonality and holidays
- Inventory supply and demand
- Cannibalization and affinity
- Weather and other events
In this unique economy, for retailers, it is all about serving the consumer. Right price, right promotion and right product! Our technology can make a huge difference in optimizing retailer profitability while improving customer satisfaction along with shopper loyalty. If you have any questions or are interested in further information, please feel free to contact me at email@example.com. I also would like to personally welcome you to stop by our booth at the NRF Show (Booth #1971) in New York City to say hello on either January 11th or 12th. For more information, please visit our website at www.revionics.com.
PS – Watch this space for some further updates on new innovations from Revionics. I will blog about our new Vendor Collaboration Portal (RAPS Collaborate) in the coming weeks.