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Planning and replenishment solution from IBM
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| Leverage our leadership and experience
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A mismatch between supply and demand can result in stock-outs, frustrated customers, lost sales and, paradoxically, excess inventory levels. Disconnects between promotion planning and execution can lead to poor demand forecast accuracy. A planning and replenishment solution from IBM can help your consumer products company gain clear visibility into customer demand to improve forecast accuracy over long cycle times.
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| Improve forecasting and planning
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IBM has the consumer products industry experience, supply chain management expertise and technical skills to help you implement a successful planning and replenishment solution.
- We have more than 2,500 consumer product and retail professionals who are veterans of many successful engagements worldwide.
- We integrated our own 30 supply chains into one, resulting in savings of US$20B over three years.
- We understand the challenges associated with transforming to a consumer driven supply chain, and we can help your company develop a roadmap that leads to clear results.
- We provide a world-class hosted service that enables suppliers, manufacturers and brokers to deploy continuous replenishment and vendor managed inventory processes to their retail customers.
- We have been a leader in RFID solutions for more than ten years, developing many of the patents that still drive the industry today.
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| Improve forecasting and planning
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With a planning and replenishment solution, IBM can help your consumer products company:
- Measure and benchmark your on-shelf availability, comparing it with industry averages.
- Capture downstream demand data and use this information to refine your base demand and statistical forecast.
- Provide visibility to store-level inventory and movement data via advanced planning dashboards to improve onshelf availability.
- Predicatively identify issues—and determine root causes—to devise actionable recommendations enabling demand-driven replenishment capabilities down to the store and SKU level.
- Develop a well defined sales and operations planning process and provide the technology to enable this process.
- Clearly define a promotional planning process which is integrated with your forecast and demand plan.
- Understand the trade-offs involved in determining the frozen period for production in terms of upstream supply chain efficiency, requirements for forecast accuracy and limits to the ability to respond to changing demand signals.
- Dynamically adjust your safety stock requirements based on actual demand volatility, forecast accuracy, demand distribution patterns, seasonality and growth.
- Ensure your planning parameters take account of the continuous improvements made in the flexibility of manufacturing and procurement.
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| Advanced retail planning and replenishment produce results
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A major home entertainment manufacturer and distributor turned to IBM to help execute on their unique supply chain model. The company faced many challenges including:
- Uncertain consumer demand.
- Unique retailer requirements for customized packaging and targeted promotional offers.
- Limited options for excessive inventory liquidations when demand for new products drops dramatically.
A combination of Advanced Retail Planning (ARP) and responsive replenishment allowed the company to seize the opportunity to shape demand and address availability at the same time. Historical sales patterns are analyzed carefully to project the sales lifecycle and inventory requirements for each new release.
After actual product release, these forecasts are updated daily from the point-of-sale to determine the immediate replenishment requirements of store inventory. The broad supply chain model focus has created sales and productivity results that surpass industry benchmarks.
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| Plan for better savings
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A planning and replenishment solution from IBM is designed to help consumer products companies improve forecasting and planning accuracy, and ultimately make better business decisions. This improved management can lead to a variety of cost savings while also driving revenue growth.
- Improve inventory management to reduce inventory levels and logistics costs.
- Decrease the cost of goods and services acquired, and lower the cost of acquisition of those goods and services.
- Reduce out-of-stocks, improving customer service levels and increasing customer satisfaction, retention and value.
- Increase sales revenue and enhance profit margins.
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Questions about this solution? Contact an IBM consumer products specialist.
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