Aberdeen Report reveals Quantum’s customers are setting a gold standard for best in class retail inventory management practices
MINNEAPOLIS, MN., July 6, 2009 – 
A new report from the Aberdeen Group has found that retailers with best in class inventory management practices are outperforming others in metrics such as significantly higher inventory turn rates.
The report, entitled Inventory Optimization: Retail Strategies for Eliminating Stock-Outs and Over-Stocks, was co-sponsored by leading inventory optimization software vendor, Quantum Retail.
“Retailers need to be on the top of their inventory game if they want to survive the recession. Balancing store-level safety stock and service levels are the key to success. Retailers such as New Look with the support of Quantum Retail have proactively addressed excess store inventory complexity and reduced 5% of excess inventory from stores through optimized store allocation strategies. The results include improved turnover by 1.5 times and improved gross profit margin by 4% year-over-year”, says Sahir Anand, research director, retail, hospitality, and CPG at Aberdeen.
Aberdeen’s survey shows a majority of the 120 retailers surveyed take five weeks or more to capture demand trends “causing all sorts of seasonal in-stock complexities for stores.” The three major issues retailers are struggling with are: higher inventory carrying costs because of lower sell through rates, higher stock outs for continuous lifecycle items, and heightened need for trend visibility and control of inventory flow.
The report features New Look, a major European fast fashion retailer that has successfully used Quantum’s inventory optimization solutions to set new standards in short lifecycle inventory management. Spencer Maynard, head of stock optimization for New Look discusses how the retailer successfully manages demand in 4 to 8 week seasons to drive best in class short lifecycle service levels of 88%, which drives positive comparative sales, and reduces overall inventory levels. Since implementing Quantum’s solution Q, he describes how New Look has increased inventory turns from 6.5 to 9 times a year.
“The biggest investment a retailer is going to make is in its inventory,” commented Tarik Taman, Quantum Retail’s chief executive officer. “The unpredictable macro economic environment will force retailers to build new core competencies of understanding and reacting to demand trends in days not weeks, and solutions like ours are capable of providing that quickly. Whether retailers are seeking improvements in market share or margin, quickly aligning ordering and store fulfillment to customer trends is the key.”
About Quantum Retail Technology, Inc.
Quantum Retail answers the new questions facing retailers with a merchandise optimization suite designed for the increasing pace and complexity of the consumer revolution and today’s competitive landscape. Quantum Retail’s solutions solve the most difficult and costly problems retailers face – quickly and permanently. Our Q solution is the answer for: Forecasting and Order Planning – Replenishment and Allocation – Assortment and Range Planning.
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SAHIR ANAND, On September 22, 2009 - Quantum Retail launched an assortment and range planning merchandising module to expand its merchandising suite’s (termed “Q”) footprint in retail. This module is geared towards fulfilling a localized merchandising need that exists in the retail industry today due to the ensuing tough retail economy. Quantum’s latest module comes at a time when there is a willingness among leading retailers to tailor or customize their assortments to more closely match the needs and wants of their customers. This Market Alert will outline the potential opportunities and pitfalls of Quantum’s strategy at a time when product localization and store-centric assortments are gaining traction in the retail industry, yet the purse strings are not exactly loose when it comes to retail IT spending. This Market Alert also assesses this development from an end-user’s perspective.
