The Age of “never normal” is driving the Digital Transformation of retail supply chains.
Significant shifts in consumer preferences have created unprecedented levels of volatility, uncertainty, and complexity. Retailers are being forced to challenge the status quo and step up their supply chain competencies, in an effort to successfully grow and transform their businesses.
o9’s platform enables retailers to transition from their traditional operating model to a digital operating model, so that they can quickly analyze, optimize and evaluate complex decisions before taking action.
problems by role
- “Complex coordination between different actors both inside and outside the retailer.”
- “A lack of collaboration between various links in the supply chain, causing poor decisions leading to over/under stocks.”
- “Store footprint rationalization due to consumer demand for omnichannel options.”
- “We have Limited end-to-end visibility on supply chain status, capacity and constraints”
- “Our Manual or Statistical Forecasting is driving a decline in forecast accuracy.”
- “We have Poor Inventory & Order status Visibility.”
- “Changing consumer preferences with the move towards sustainability, fresh/organic/healthy, and locally sourced materials challenging sales plans.”
- “Significant shift in channel preferences with the need to support various store formats and omnichannel options.”
- “Constant introduction of new and personalized items to address changing consumer tastes challenges shelf space and supply chain.”
- “Massive volumes of customer, supplier, product, and market data available but not being used effectively to drive decisions and business results.”
- “Many people are second guessing forecasts - Limited visibility and collaboration around assumptions.”
- “Our market visit reports are all on email – no way to reference them systematically.”
- “Changing assortments and new product launches are resulting in excess inventory throughout the fulfillment network.”
- “Slow, siloed planning processes without clear view on constraints leading to sales and margin alignment gaps between finance, merchandising and operations.”
- “Increasing volatility of raw material / finished goods costs as well as unpredictability in transportation costs create financial headwinds.”
- “Our growth return on marketing/promotion is not meeting our expectations.”
- “We cannot answer management what-if questions in real time.”
Aim big, start small, iterate rapidly.
Top 5 quick-win o9 capabilities that retail clients are starting with
Define your Assortments
Determine product mix across channels, regions and stores to maximize profits and minimize markdowns.
Retail Demand Planning
Sense & Forecast demand
Understand what drives customer purchases and incorporate market and customer knowledge with machine learning to dramatically improve forecast accuracy.
Replenish & flow product to maximize in-stocks
Utilize advanced allocation and optimization techniques to proactively position inventory to service demand.
Merchandise Financial Planning
Ensure predictable financial performance
Align all financial, strategic, Top-down, Middle-Out, and Bottom-Up planning processes to improve efficiency, quality and accuracy.
Respond to disruptions
Take corrective actions to resolve unexpected network bottlenecks, supply shortages and demand disruptions.