Automating Assortment and Store Planning for Retailers

Galleria, SAF ally to offer computer-assisted ordering solutions to optimize availability and improve inventory turn

Galleria, SAF ally to offer computer-assisted ordering solutions to optimize availability and improve inventory turn

Chicago — July 24, 2006 — Galleria Retail Technology Solutions, a provider of automated retail cluster, assortment and space optimization solutions, and SAF AG, a specialist provider of automated ordering and replenishment systems to retailers, are partnering to offer retailers the ability to automate and optimize their supply chain from the distribution center to the individual store shelf.

Galleria's optimized assortment and space planning solutions facilitate the automated production of planograms. This automated schematic aims to provide the optimal assortment of products and the required quantity of stock, tailored to a cluster of stores or individual store's local demand and space configurations.

Shaun Bossons, executive vice president for the United States at Galleria, stated, "Assortment planning creates the optimal product mix, while historical performance data enables recommendation of the required amount of stock. The automated plan fits the assortment to the available space helping retailers achieve unprecedented in-store compliance levels. This leads to increased sales, greater availability of key products, reduced wastage/mark-down of slower moving products and improved bottom line performance."

Using the demand chain management approach, the SAF solution automates the ordering process and influences retailer replenishment decisions based on actual customer purchase behavior. Based on demand forecasting, frequency of delivery and case pack information, SAF can calculate optimal inventory requirements. This process allows SAF to identify an exact amount of stock required for each product at each store.

"By combining our automated solutions, we are able to deliver a level of granular planning on a scale previously unattainable with manual systems," Bossons said. "Using SAF's inventory forecasting data, Galleria can improve their planogram creation process to ensure the most optimal assortment and number of units required to meet customer demand."

Bossons added that the benefit of using performance data in conjunction with forecast data is stock that reflects future demand on a store by store basis, instead of a purely historic view. This can result in improved availability of fast-selling product lines. Additionally, the retailer can improve on future frequency of delivery and case pack configurations prior to upcoming category reviews, Bossons said.

During the category review process, Galleria can create the optimal planogram based on assortment and inventory recommendations determined by the SAF historic and forecast data for the retailer. Galleria then provides input back to SAF regarding previously established case pack and inventory recommendations.

This process allows the retailer greater control over replenishment as well as improved retailer-supplier collaboration. The retailer then has the opportunity to re-optimize case pack numbers and delivery frequencies to accommodate store level fixture requirements and consumer demand.

By ensuring the automated planogram reflects the optimal inventory recommendations, the Galleria and SAF solutions work together to overcome the challenges associated with generic planogram deployment. As such, Galleria ensures that the SAF forecasts are executed in-store, resulting in increased inventory turns and a reduction in overstock, the solution providers said.