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DEMAND PLANNING & REPLENISHMENT

NeoGrid Supply Chain Synchronization Global Demand Planning & Replenishment solutions help strengthen the relationships among retailers, suppliers and their trading partners along the supply chain to enhance efficiencies and significantly improve business results.

INTRODUCTION

Changing the way the world looks at supply chain ... one solution at a time.

With increased competition, growing product segments, more frequent new product launches and shorter product life cycles, managing an efficient and successful supply chain is becoming more challenging every day and retailers and manufacturers must be focused on maximizing every interaction with prospective customers, as consumers demand not only more value-conscious products, but also higher levels of service, greater quality, and enhanced shopping convenience.

NeoGrid solutions enable visibility and operational capability to support the fulfillment of demand at any node in the supply chain, including down to the store shelf, by letting everyone along the chain share valuable information that is critical to effectively respond to demand, thus reducing out-of-stocks, lowering overall inventory and bettering the consumer experience to deliver the high level of results, while strengthening relationships and building trust among retailers, suppliers and ultimately, the consumer.

NeoGrid Demand Planning & Replenishment suite allows retailers, suppliers and other supply chain partners to work together in true collaboration by providing increased flexibility throughout the entire supply chain. We help driving the comprehensive and accurate planning of inventory through collaborative forecasting, sales and operational planning, statistical forecasting, demand planning and event management-all to achieve immediate recognized value.

SOLUTIONS

 

VIEW THE BUSINESS SUMMARY 2013

Vendor Managed Inventory – VMI

VMI is a business model that works to strengthen the relationship between retailers and suppliers, by allowing the supplier to be responsible for maintaining adequate inventory levels at distribution centers or stores. The retailer, manufacturer or distributor provides the necessary product information to the supplier, who then is responsible for an agreed level of inventory. By letting suppliers take a more active role in managing inventory on the retail side, VMI leads to greater efficiency and helps to eliminate unwanted gaps in demand and supply.
 
Retailers' and suppliers' biggest challenges::
  • Improving responsiveness of the supply chain
  • Reducing supply chain costs
  • Managing demand volatility and variability
  • Managing collaborative planning
  • Managing service levels
  • Managing sustainability

The reduction of inventory is an important part of managing working capital; therefore, to build competitive advantage, retailers and suppliers are increasingly focusing on supply chain efficiency to deliver cost savings. NeoGrid Replenishment solutions are proven to provide enhanced results on all these issues, through high-level, innovative solutions that go beyond what you ever thought possible.

Typical challenges and organizational needs:

  • Many products at many locations
  • High values and costs
  • Events, promotions, seasonality
  • Negotiation per order
  • Relationship based on discounts

Solution Goals

  • Product availability
  • Maximized profitability
  • Excellent customer service
  • Optimized assortments and reduced levels of inventory
  • Reduce working capital
  • Minimized markdowns
  • Decreased product holding costs

Key Benefits

  • Increased product availability and sales
  • Raised service level and customer satisfaction
  • Increased inventory turns
  • Reduced out-of-stocks
  • Enhanced demand visibility in the supply chain
  • Reduced operational work due to greater data analysis
  • Better supply chain management
  • Minimized costs

Advantages of NeoGrid Solution:

  • Truly demand driven replenishment
    - Only solution in the market that incorporates actual demand into replenishment processes
  • Information at store level
    - Achieve visibility all the way down to the store shelf, no matter the size of the chain
  • Deep expertise, with consulting resources to help design replenishment policies and processes that enable demand-driven replenishment
  • Rapid implementation of simple, easy-to-use systems that are complementary to existing SCM solutions

Collaborative Managed Inventory - CMI

Building on the VMI co-managed inventory models, CMI opens up visibility even further, beyond the distribution center, all the way down to the store shelf.
Today, the biggest challenges faced by retailers and suppliers are:
  • Improving responsiveness of the supply chain
  • Reducing supply chain costs
  • Managing demand volatility and variability
  • Managing collaborative planning
  • Managing service levels
  • Managing sustainability

NeoGrid Collaborative Managed Inventory is proven to provide enhanced results on all these issues, through high-level, innovative solutions that allow suppliers and retailers to shorten the orders cycle for the same item, improving turns and availability, going beyond what you ever thought possible.

Typical challenges and organizational needs:

  • Many products at many locations
  • Low order frequency, for the same SKU
  • High values and costs
  • Events, promotions, seasonality
  • Negotiation per order
  • Relationship based on discounts

Common Goals

  • Maximized profitability
  • Product availability (always in stock)
  • Increased inventory turns and reduced level of inventories
  • Reduced working capital
  • Excellent customer service
  • Optimized assortments
  • Minimized markdowns
  • Decreased product holding costs
  • Visibility of inventory at individual store shelves

Key Benefits

  • Increased product availability and sales
  • Raised service level and customer satisfaction
  • Increased inventory turns
  • Reduced out-of-stocks
  • Enhanced demand visibility in the supply chain
  • Reduced operational work due to greater data analysis
  • Better supply chain management
  • Minimized costs

Advantages of NeoGrid Solution:

  • Truly demand driven replenishment
    - Only solution in the market that incorporates actual demand into replenishment processes
  • Information at store level 
    - Achieve visibility all the way down to the store shelf, no matter the size of the chain
  • Deep expertise, with consulting resources to help design replenishment policies and processes that enable demand-driven replenishment
  • Rapid implementation of simple, easy-to-use systems that are complementary to existing SCM solutions

Sales and Operations Planning – S&OP

NeoGrid S&OP is an integrated business management process where the executive leadership team can determine a company's objectives, continually review the results, guarantee the business focus, and provide alignment and synchronization across all functions of the organization.
 
By creating a collaborative environment that ensures everyone is aligned with the same set up, performance and forecasting signals, this solution also helps to better understand demand and generate a more efficient planning cycle across internal and external organizations. The S&OP plan includes updated sales roadmaps, inventory assertiveness, new product development, and financials.

Typical challenges and organizational needs:

  • Complex, multilevel planning process with many inputs and low visibility
  • Many inputs to planning process
  • Problems with forecast accuracy
  • Issues with overstocks and out-of-stocks
  • Different organizations executing to different numbers
  • No structured globally unified process
  • Missing key stakeholders
  • Time or information constraints
  • Multiple information sources
  • Difficult to get to needed data
  • Process too cumbersome and/or infrequent

Solution Goals

  • Improvement of efficiency of operational analysis
  • Improvement of forecast accuracy (MAPE)
  • Improvement of promotion planning and integration with the demand planning process

Key Benefits

  • Raised service levels and customer satisfaction
  • Improved demand forecast accuracy (MAPE)
  • Increased product availability
  • Increased sales
  • Increased inventory turns
  • Focus on relationships with the end consumer

NeoGrid Solution Advantages:

  • Ready to use actual consumption (POS Data) coming from the stores
  • Rapid implementation, with operation in as little as three months
  • Extensive integration capabilities
  • Feature-rich capabilities in forecasting, planning and enabling internal and external collaboration
  • Stand-alone cloud-based solution focused on accomplishing its task completely, rather than providing extensive SC functionality
  • Complimentary to existing SCM solutions: can use NeoGrid S&OP for any step of the planning cycle
  • Deep expertise with consulting resources to help design and implement planning processes

DISTRIBUTION REQUIREMENTS PLANNING - DRP

NeoGrid DRP is a solution for retailers, manufacturers and wholesalers that takes into account actual daily consumption, remaining inventory and event management to synchronize the inventory levels throughout the internal supply chain, thus increasing availability and reducing overall inventory.

NeoGrid DRP focuses organizations on driving a consumption-based replenishment process for a truly demand-driven supply network. This includes supply and distribution planning, and demand-driven replenishment, which allow supply chain partners to make feasible ordering decisions.

Typical challenges and organizational needs:

  • Inventory levels too high (Distribution Centers or Stores)
  • Lost sales due to out-of-stocks
  • Lack of responsiveness to consumer requirements
  • Difficulty managing fluctuations in demand
  • Complex distribution process
  • Time-consuming, highly manual process
  • Lack of visibility into inventory
  • No clear understanding of inventory levels at each node of the supply chain and key trouble nodes
  • Many SKUs and locations
  • As business grows, standard replenishment processes become too time-consuming
  • High forecast error leading to over-and under-stocks
  • Forecast-driven measurements
  • Business is measured on efficiency, gross margin, volume

Solution Goals

  • Sales Increase
  • Balanced inventory
  • Reduced out-of-stocks
  • Reduced operational work
  • Vendor's products' performance is monitored

KEY BENEFITS:

  • Increased revenue
  • Raised service level and customer satisfaction
  • Reduced out-of-stock levels and increased inventory turns
  • Increased product availability and sales
  • Enhanced demand visibility in the supply chain
  • Reduced operational work due to greater data analysis
  • Achieved improved balance of inventory
  • Better supply chain management
  • Minimized costs

ADVANTAGES:

  • Truly demand driven replenishment
  • Only solution in the market that incorporates actual consumption replenishment processes
  • Information at store level
  • Achieve visibility all the way down to the store shelf, no matter the size of the chain
  • Deep expertise, with consulting resources to help design replenishment policies and processes that enable demand-driven replenishment
  • Faster implementation of simple, easy-to-use systems that are complementary to existing SCM solutions

Collaborative Planning, Forecasting and Replenishment – CPFR

NeoGrid CPFR enables the cooperative management of inventory through joint visibility and replenishment of products throughout the supply chain. Demand and supply management is broken into sales forecasting, which projects consumer demand at the point of sale, and order planning/forecasting, which determines replenishment, including future product ordering and delivery requirements based upon the sales forecast, inventory positions, transit lead times, and other factors.

By creating a collaborative environment that ensures everyone is aligned with the same set up, performance and forecasting signals, this solution works to help better understand demand and generate a more efficient planning, forecasting and replenishment cycle across organizations.

Typical challenges and organizational needs:

  • Lack of visibility in the supply chain 
  • Little or no planning commitment among trading partners
  • Costly and often adversarial relationships as they are based on order patterns
  • Overstocked inventories
  • Low service levels

Solution Goals

  • Enhanced service levels
  • Improved inventory turns
  • Compromise with planned actions
  • Improved relationships with trading partners

Key Benefits

  • Raised service levels and customer satisfaction
  • Improved demand forecast accuracy (MAPE)
  • Increased product availability
  • Improved sales
  • Increased inventory turns
  • Improved relationships with the end consumer

NeoGrid Solution Advantages:

  • Ready-to-use actual consumption and POS data at store level
  • Fast implementation in as little as three months with extensive integration capabilities
  • Advanced features for forecasting, planning and enabling internal and external collaboration
  • Stand-alone, cloud-based solution focused on accomplishing its task completely, rather than providing an extensive supply chain functionality
  • Complimentary to existing SCM solutions Deep expertise with consulting resources to help design and implement the planning processes
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