Increase operating profit by >25% off existing spend
Retailer’s failure to effectively manage the impacts of continuous in-store “inventory risk” represents a global loss of $818B annually; increasing by $50B annually, and representing $124 for every man, woman and child on the planet. (IHL Group Inventory Distortion “Study, May 7, 2012)
In the food/grocery retail sector, inventory risk impacts within the retailer, when calculated off retail price and including disposal costs arising from shrink, run between 4% and 6% of total stores’ sales. At a time when average operating profits are <4%, attacking return-on-inventory performance becomes a priority in the battle to eliminate inventory risk occurrences.
Applying our unique approach to inventory performance optimization recovers >25% of these losses to operating profit. In the case of perishables’ products, where costs are “sunk”, every recovered $ drops through 100% to operating profit; effectively enabling profit lift from within the existing “spend”.
Working with our global partners, Impulselogic helps retailers take the challenge of addressing and correcting this inventory risk problem with he ability to prove this outcome within 120 days.
Automated management of real-time, “active” data from all applications silos, regardless of data source and/or type
Ability to manage data from multiple concurrent sources and to apply complex transformation logic to the data without the need for code development
The most advanced predictive analytics on active inventory performance; specifically the continuous maximization of gross margin return on inventory investment (GMROII), balancing of supply with “actual” demand, reduced inventory carry and increased stock turns
Automated corrective actions around markdown reductions, elimination of shelf out-of-stock occurrences, and delivery of customer messaging in response to corrective actions involving price and/or promotional messaging; whether print or electronic