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Target is taking multiple actions to right-size its inventory, including additional markdowns, removing excess inventory and cancelling orders, as it makes room for merchandise including groceries and back-to-school supplies.
Why Your SupplyChainManagement System Depends on the Right Retail Inventory Management Software In today’s complex retail environment, managing a supplychainmanagement system is no small feat.
Supply-chain optimisation: It is reported that AI-driven supply-chainmanagement can reduce errors by 20-50 per cent, decrease lost sales and product unavailability by up to 65 per cent, and lower warehousing costs by 5-10 per cent.
Supplychain disruption may have become a singularly hot topic in retail circles these past years, but a focus on improving supplychain planning and forecasting is far more than just a passing trend.
Promotional calendars: Planning key campaigns, promotions, and markdown events throughout the year to drive sales and clear seasonal inventory. For example , A specialty apparel retailer may align on a KPI such as 8% revenue growth while keeping markdowns below 15%, using the AOP as a performance framework for every team.
Inventory Management: Retailers often struggle with balancing sufficient inventory to meet demand while avoiding excess stock, which can lead to increased carrying costs and potential markdowns. With ChainDrive, retailers can streamline their supplychain processes, improving efficiency and ultimately boosting overall profitability.
Intelligent algorithms within Merret Pro facilitate automatic stock movement between distribution centers and stores, optimising replenishment and reducing markdowns. Effortless Purchase Order ManagementManaging purchase orders becomes a breeze with Merret Pro. The result?
Improved SupplyChainManagement: Merret Pro revolutionises your supplychain by streamlining operations and improving inventory accuracy. Its intelligent algorithms ensure that stock is allocated to the right place at the right time, enhancing efficiency and reducing markdowns.
The multiplication of choices induced by this model translates into a drop in productivity of the physical store space and an increase in markdowns at the end of the season to sell unsold products. For all of these reasons, supplymanagement is one of the current priorities of many retailers, the health crisis having served as an accelerator.
In short, true supplychain sustainability that minimizes waste while increasing profits can only be possible through the effective use of technology. Let’s take a closer look at how sustainable supplychainmanagement results in efficient, cost-saving operations that are better suited to our current social, and environmental needs.
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