The system automatically identifies reference products based on product attributes, such as brand and form, to improve demand forecast accuracy for newly introduced items. Similarly, RELEX has improved The Vitamin Shoppe’s ability to manage their new product introductions. I believe it to be the number one opportunity for both increasing sales and reducing inventory at The Vitamin Shoppe,” said Finkelstein. “RELEX’s ability to drive promotional forecasts using historical, store-SKU-specific events was a major driver for us in selecting their product. The Vitamin Shoppe now has a greater level of insight into how products behave during promotions, allowing the team to more accurately place orders. With the RELEX system, they are now forecasting promotional uplifts on the product and store/channel level, accounting for the impact of price discounts, duration of the promotion, and promotional displays. Previously, The Vitamin Shoppe had to use chain-wide promotional uplifts based on product category. An empowered planning team that can implement innovations and continuous improvements without waiting for approval of change requestsĭespite several unexpected roadblocks during the early days of the project, including the impact of COVID-19, RELEX completed the implementation on time, within their 8-month time frame.Omnichannel inventory optimization, including virtual ringfencing.Highly automated replenishment with less stock-outs and over-stocks.More accurate forecasting of both baseline demand and promotional uplifts per SKU and store/channel.Results: Accurate Omnichannel Forecasting and Inventory Optimization Give the team ownership of the system for fast innovation and implementation of new configurations without coding.Manage omnichannel inventory optimization.Accurately handle the forecasting of frequent promotions and assortment changes.The Vitamin Shoppe began their search for a solution that could help scale their omnichannel strategy while effectively managing the frequent assortment changes and promotions.Īfter internal review, The Vitamin Shoppe determined that they needed a system that could: “Our previous systems only allowed the team to focus on our top-selling SKUs, which left a lot of opportunity for sales growth on the table, especially knowing how different each store’s sales are,” said Finkelstein. “We need to quickly react to changes in the business – whether that is a change in the supply chain network, selling channels, or new ways to deliver to our customers,” explained Steve Finkelstein, Senior Director of Merchandise Planning and Inventory for The Vitamin Shoppe.ĭespite a strong desire to innovate and implement new processes to overcome these challenges, the central planning team found themselves limited by their existing tools. From a supply chain perspective, this means planning for and continuously adapting to changing demand in each store and in their online channels. In addition, The Vitamin Shoppe strives to delight their customers by continuously refreshing their assortment and offering great deals. Their previous planning tools did not provide support for managing these different demand patterns. Both online and in stores, The Vitamin Shoppe gives their customers multiple options for how items can be purchased, including one at a time, in bulk, or by subscription. The Vitamin Shoppe is constantly seeking to evolve as an omnichannel retailer. The Challenge: Omnichannel Retail with Frequent Promotions and Assortment Changes In total, The Vitamin Shoppe’s centralized planning team manages around 4.5 million goods flows. The Vitamin Shoppe offers an assortment of their own brands and multiple third-party lines encompassing more than 6,000 SKUs per store and over 10,000 SKUs online. Founded in 1977, The Vitamin Shoppe is an American omnichannel retailer selling nutritional supplements, natural beauty products, and more in their brick-and-mortar locations, through their Vshoppe app, and on their website.
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