Department Stores

Featured client // Kohl’s

Positioning department stores with a competitive advantage

The current economic environment is a gift for the good retailer. It does them the great service of highlighting all the shortcomings of their supply network and giving them the opportunity to address those challenges. This means removing the assumptions from their processes, taking away the simplifications and dealing with the details. Retailers that embrace the fact that their customers have changed – and that past trends are no longer relevant – will be successful. To do this, they need to align their supply network with what customers are asking for now, not what the retailer assumed they were going to ask for. Retailers need to have a holistic fulfillment process that reaches the length of the supply network and to be built around aligning their inventory investment with local market needs.

Aligning retail business strategies //

When we developed our system, Q, we specifically set about to create a solution that would understand and work with a retailer’s business strategies. Unlike other systems, Q is goal oriented from the start. The advantage of Q is that, unlike other systems which only forecast at the chain level, it forecasts effectively at both the individual store and SKU level. Q works in real-time with current information so that decisions can be made literally on the fly; if a product is selling well in a particular store, Q ensures there will be inventory to satisfy that demand.

By continuously optimizing inventory need in relation to merchandise and assortment goals and supply chain constraints, retailers can extract the highest level of potential sales and profit from their inventory investment.

Unlocking greater value //

Q is even relevant for retailers who are already effectively managing their most important items. Our clients have all seen significant improvements, in most cases getting 100% return on investment in under 6 months. We are very proud of the fact that a low touch technology like Q can quickly unlock this kind of value with a low capital outlay.

Protecting your brand //

But there is more to it. Good inventory management also protects your brand. If you are able to stick to a strategy it means that you are not confusing your customers with constant shifts in direction. If you can’t decide whether you are a ‘pile ’em high’ store one minute and a desirable brand the next, you are going to mess with your customers’ heads and they will not buy from you. At the same time, your shareholders are happy because they have also bought into the value of the brand. And that is what our approach is all about, and why Q is not just part of your IT department: it is a tool to realize your business strategy and create profits.

LISTEN >> Chris Allan, Chief Strategy Officer, Quantum Retail discusses how retailers can overcome the complexity barrier in the inventory planning process by leveraging business goals and strategies to drive optimal inventory execution.

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