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| Transition to integrated merchandise and supply chain operations
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The merchandising and supply chain solution for retail from IBM provides methods, tools and accelerators to help you execute a customer-centric merchandising and supply chain strategy to support your business objectives. Increase your flexibility and respond to customer demands quickly. Transition from a siloed business model to one founded on a fully integrated and optimized network. Exploit global sourcing. Plan and buy to maximize profitability. Provide customer-specific assortments, allocations and pricing. Reduce lead times and improve on-shelf availability with more granular inventory data.
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| Invest in leadership and experience
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IBM retail industry experience, merchandising and supply chain expertise, supporting technologies and implementation capabilities can make the difference between wishful thinking and the realization of a customer-centric retail business. As evidence of industry leadership, we:
- Have more than 30 years of experience in the retail industry and more than 4,400 consultants dedicated to consumer-focused industries, serving thousands of retail clients globally.
- Have delivered more than 300 major merchandising and supply chain transformation initiatives.
- Apply cutting-edge technologies, such as RFID, to transform core merchandising and supply chain capabilities and provide near real-time inventory visibility.
- Have a long history of developing innovative, market-changing technologies—such as merchandising and supply chain workbenches—which align people, processes and systems to deliver seamless assortment planning, sourcing and ordering.
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| Product. Placement. Price. Promotion.
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Outperform the competition. Deliver the product offerings that your customers demand. The merchandising and supply chain solution for retail from IBM features eight offerings designed to optimize retail merchandising and supply chain functions.
- Merchandising and supply chain strategy—includes methods for assessing market position and strategic objectives, best practice process and organizational design, tooling and IT requirements, transportation and logistics strategy, business case and program design.
- Core merchandising and supply chain transaction systems—provides the foundation for master data, as well as the ability to manage buying, ordering, suppliers, the stock and inventory ledger, margin control and overall item management.
- Integrated global sourcing—delivers the capability to identify, quantify and assess global sourcing opportunities, as well as provide logistical capabilities to execute sourcing requirements.
- Merchandise, assortment and space planning—offers integrated supply chain visibility, a common process template and a measurement framework to help you plan and execute a buy, from the aggregated level down to the store shelf, and respond proactively to customer demand and trends.
- Supply chain planning, forecasting and replenishment—uses consumer demand data to provide an integrated set of order forecasts and stock movement requests that can help you move products from the supplier to the store and shelf at the right time, without the need for large inventory.
- Supply chain execution and logistics—addresses the efficient transportation, warehousing, picking and movement of stock to enable products to flow from the manufacturer to the retail back door as quickly as possible, at minimum cost.
- Price and revenue optimization—helps you maximize profitability for items and categories, reduce markdown spend and manage price effectively without sacrificing margin.
- Store replenishment—helps improve your on-shelf product availability by driving all replenishment forecasting and ordering from real-time consumer demand signals and synchronizing supply chain forecasts and plans across the value chain.
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| Implement for success
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Working with IBM to increase the consumer focus of your merchandising and supply chain operations can yield many benefits.
- By matching product assortments, pricing or space allocations to the needs of local markets, our clients have increased same store sales by up to 9 percent, while reducing waste and markdowns.
- By improving supply chain planning and execution in both the warehouse and distribution center, our clients have reduced their on-costs by up to 7 percent.
- Better supply chain planning, forecasting and replenishment have taken millions of dollars worth of inventory out of warehouses and stores, while improving product availability at the shelf from 92 percent up to 98 percent or beyond. Deploying the latest RFID technology has driven this even higher.
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| Improve financial performance
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Stay competitive and grow profitably by responding to market changes quickly to realize the financial advantages of optimized merchandising and supply chain capabilities. We can help you:
- Increase sales and lower costs by helping to ensure higher product availability in the store, while reducing overall inventory levels.
- Reduce the cost of sourcing, warehousing and transporting merchandise.
- Increase revenue by delivering the right products to the right channel through improved forecasting and demand intelligence.
- Improve margins through initial price optimization and reduced markdown activity.
- Reduce the time and risk to roll out new geographies, stores and formats by standardizing processes and systems.
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Questions about this solution? Contact an IBM retail specialist.
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