• WL-DCM - Warelites real time Demand Chain Management
• WL-DCM used for Retail
• Causes for OOS
• OOS-Rates worldwide
• OOS causes wrong Forecasts
• What POS-Terminals can not detect
• RFID allone does not help against OOS
• WL-DCM avoids OOS
• available Systems
• Why you should decide for WL-DCM

• Lager bis zu 50% reduziert trotz besserem Kundenservice
• Regalprozesse plan- und messbar
• detaillierte Berichte - bessere Übersicht im Geschäft
• frühzeitige = rechtzeitige richtige Wiederbeschaffung

“Today's processes for demand sensing and shaping take seven  to nine days to correct an out-of-stock.
Retail perpetual inventory accuracy is worse than originally believed. The inaccuracies of even
Wal-Mart's store-level inventory data trigger manufacturing replenishment two days too late at the store level.”

 

"These pilots support that 80% of lost sales days are from out-of-stock episodes that last more than seven days.
With most out-of-stocks occurring in heavily promoted products and new product launches (products that are
essential to the enabling of growth strategies), seven days is just too long!“

 

 

Lora Cecere, ‘Three Years Of Retail RFID Pilots, what we have learned’ 2007

 

A new type of application is needed to avoid OOS. WL-DCM allows today to lower OOS rates dramatically.
As soon as RFID is available WL-DCM will react even faster because it is designed to process many events
in real time. First you have to avoid or reduce OOS then you will get automatically more precise reorders and forecasts.

 

 

DCM-Systems can be categorized in two main groups:

1. Systems proving services to improve forecasting based on data from POS
2. Systems die direkt die Regal- und Lagerbetreuung unterstützen

Systems of category 1 (JDA, SAF-AG, Teradata, etc. ) can not avoid empty shelves. These
Systems analyse historical POS-Data which do not have any information about OOS.
The forecasts automaticaly faulty because POS-Data does not contain all information
about customers demand.

 

Warelites real time DCM belongs to group 2. The active shelve management allows
to react immediately to customers demand. WL-DCM provides valuable data for systems
of group 1.

 

WL-DCM is perfect if you want to raise customer satisfaction, lower inventory,
avoid wrong forecasts, avoid OOS, raise sales and optimize promotions.

 

WL-DCM shows you all your inventory and the actual situation,
you do not need complex expensive tools to analyze historical data.

Conventional DCM-Systems try to optimize forecasts and this systems
achieve notably results  -> but these systems never solve the real cause of OOS.
Studies of Corsten/Gruen document averaged OOS-rates to be 8.3% though
forecast systems are used.

 

1. improve customer service level - Avoids wrong forecasts because
   of providing real demands compared to POS-data. Avoids OOS, your customers
   will not end up in front of empty shelves.
2. optimizes your assortment - WL-DCM optimizes automatically your inventory
   because reorders can be done based on real demand. Lower demand leads to
   lower reorder quantity and lower inventory.
3. optimice promotions - Optimal shelve replenishment and reorders avoid OOS.
   Nevertheless if OOS occurs WL-DCM provides all information about it.
4. fast ROI - WL-DCM projects are driving significant ROI through improved
   customer service levels and effective inventory management.
   OOS causes lost sales up to 4%, for promotions up to 30%.
   WL-DCM raises the customer service level and concurrently lowers inventory.
5. more precise forecasts - WL-DCM provides information about the real demand,
   POS-data can not do that. Therefore using WL-DCMs information improves forecasts.
6. scaleability - WL-DCM is based on the scaleable XTP-Platform.
   Comprehensible Benchmarks document the high capacity of the system.
   WL-DCM is designed for supporting any number of items and RFID.
7. seasonal changes - WL-DCM uses real actual sales trends. Therefore seasonal changes
   are considered automatically by the system.
8. satisfy yourselv - Our Excel-Simulation shows you the results. The simulation documents
   that you do not need complexe expensive tools to obains customers demand.
   WL-DCM provides all that information out of the box.
9. WL-DCM the logical completion - Only WL-DCM enables your forecast systems and the Supply-Chain
   providing best results.
   WL-DCM provides real demand data and forecast systems can set parameters for WL-DCM
   (e.q. capacity of inventory, delivery time).
10. RFID will not avoid OOS - operating experience shows that RFID will not avoid OOS.
    WL-DCM can do that and is RFID enabled.