Excellence in inventory management is the mark of a 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, data visibility, and proprietary models. We provide support and position your company to significantly increase profitability.
Understanding Item Level Inventory (ILI)
There is often a misunderstanding around what it means to be on item level inventory. Scanning in and out, counting every item, and rolling it up to a category level does not equate to managing inventory at the item level. Item level inventory is managing on-hand inventory levels for each item on a perpetual basis.
A focus on optimizing inventory management can address some significant industry challenges and greatly improving financial flexibility. Our cloud-based Inventory Management Optimizer solution increases inventory visibility and leads to increased profit.
- Data visualization
- Exception reporting
- Critical insights
Common Industry Challenges
|Inventory is the largest investment inside the store.||Inability to manage inventory at item level has resulted in significant out of stocks and higher carrying costs.|
|Capital is tied up in unproductive inventory.||Retailers have less flexibility to invest in other parts of the business: new stores, upgrades, M&A, foodservice and more.|
|Labor-intensive inventory solutions are in place.||Maintaining store, category or item profiles is time consuming; field-level understanding is limited.|
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 which ties up working capital.
IMO is an analytics model, based on SQL server and Qlik front-end, which provides reporting for your inventory performance at a granular level.
Impact 21 IMO Results
Clients using our IMO have seen sales improvements of 1-3% due to:
- Better in-stock positions
- Lower days on hand in all categories
- Significantly lower excess inventory and carrying costs.
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.
IMO Solution Benefits
Release Working Capital
- Reduce on-hand inventory
- Optimize SKU mix
- Improve in-stock position for top sellers
- Reduce out-of-stocks for slow movers
Improve Store Operations
- Reduce time spent ordering products
- Reduce store inventory cycle count time
- Less frequent, more targeted physical inventories
- Re-focus on customer interaction to improve sales
- Reduce working capital by lowering on-hand inventories
- Increase sales by focusing on top sellers and reduce out-of-stocks
- Improve store operations by cutting down on order time through automated ordering
- Decrease physical inventories with less frequent, more targeted cycle