Manhattan Active INVENTORY. Suite Overview

Transcription

1 Manhattan Active INVENTORY Suite Overview

2 ACTIVE INVENTORY Suite Maximize Return on Your Inventory Assets IMPROVE SERVICE LEVELS, INCREASE SALES AND REDUCE INVENTORY. Those have been the cornerstones of advanced inventory optimization for decades. But in the era of digital commerce, the costs for consumers to switch loyalties has been reduced significantly. As a result, companies in every industry are challenged with finding new ways to acquire and retain customers without buying more inventory. This is why omni-channel selling and delivery options have focused on what companies can do today, at the time of purchase, to avoid losing the sale. The problem is, focusing on maximizing the top line in real time inevitably creates new inventory challenges when merchants, planners and inventory managers analyze sales and buying behavior. It also raises a series of questions: In hindsight, could that costlier save-the-sale transaction have been prevented with better planning? Could lost in-store sales due to overselling of store inventory via the online channel have been avoided? Could the difficulty of managing complex SKU/location combinations be causing an over reliance on promotions to maintain sell-through? The answers lie in shifting your thinking from traditional inventory management to Active Inventory optimization to ensure inventory investment strategies meet customer satisfaction and top-line revenue objectives. That s also the thinking behind our Active Inventory suite. With Active Inventory, you gain the agility you need to adapt to make sense of demand, with the flexibility you need in to enact changes to inventory procurement and replenishment plans. 2

3 Focusing on maximizing the top line in real time inevitably uncovers new inventory challenges when merchants, planners and inventory managers analyze sales and buying behavior.

4 Why Manhattan? As part of Manhattan s Active Enterprise portfolio, Active Inventory solutions are continuously adaptive, always current, seamlessly interconnected and run anywhere. A variety of deployment options allows them to be put into operation flexibly, running in an environment of your choosing in a public or private cloud, on premise, managed, or a combination of those environments and approaches.

5 Greater Science, Greater Inventory Productivity. With Manhattan s Active Inventory, you can optimize inventory across the multiple levels of your supply chain and the multitude of selling channels using our solutions that are architected to ensure a profitable advantage on the buy side. This involves: Employing advanced mathematical models to anticipate demand, set channelspecific service levels, optimally fill orders and deliver the best balance of profit and customer satisfaction Data transparency up and down the supply network and advanced mathematics to consider all variables across the supply chain Leveraging unlimited attributing, modeling capabilities and improved visibility to consistent information to meet customer needs while staying within budget More nuanced forecasting methods that recognize seasonal and trend-based patterns without requiring heavy user intervention or strictly-defined criteria Manage the Details. But Don t Lose the Big Picture. The challenge of managing complex SKU/ location combinations tied to broadlydefined product hierarchies puts a heavy burden on planners and inventory managers to delve far into the details without getting lost. That s why our solutions allow flexibility for management at varying levels of detail, providing: The ability to simulate the inventory and sales impact of multiple inventory strategies without having to actually implement those strategies The ability to automatically self-tune inventory strategies based on business objectives, eliminating the need for user intervention for tasks the system is capable of managing Easy to follow, prioritized workflows that ensure the inventory analyst is focused on the most business-impacting aspects of inventory management The ability to plan assortments within and across channels while maintaining the unique attributes of each selling channel An iterative process for planning and forecasting to allow for re-evaluation and adjustments based on changing data 5

6 Responding to a Demand and Deliver World The ability to fulfill orders from anywhere can lower safety stock requirements at the distribution center (DC), which changes the approach to replenishment. In turn, it causes planners to re-evaluate their initial allocations. For retailers and wholesalers alike, the complexity of interpreting sales data can make it difficult to forecast demand accurately based solely on what items were fulfilled from each location. More granular visibility needs to be accompanied by intelligent automation. Having to plan through complex product hierarchies and SKU/location combinations causes planners to get lost in the details when a big picture perspective may result in better inventory performance. To solve this, organizations need seamlessly interconnected solutions to gain visibility and execute using tools that operate from a single version of the truth across merchandising, supply chain and sales (e-commerce and store) divisions. According to a 2014 RSR survey, retailers rated collaboration among these three divisions as their top operational challenge 1. The following capabilities help enable this collaboration: Iterative adjustments to inventory protections in each channel driven by merchants and planners and executed by sales particularly in the store, where online selling can deplete floor sets and result in lower service levels for walk-in customers Visibility of inventory changes across the network in real time and the ability to aggregate customer order data across channels Visibility to the inbound flow of products against POs and the ability to adjust and reallocate as needed based on emerging demand Adjustments to inventory segmentation in distribution centers, the ability to drive transfers between those segments to rebalance stock positions based on changing demand, and the real-time visibility to this segmentation provided to buyers Whether you re a retailer or wholesale distributor, using Manhattan s Active Inventory suite of solutions helps ensure you have the right amount of product at the right place at the right time. Underpinned by Manhattan s best-in-class algorithms for inventory forecasting and planning across multiple echelons, our Active Inventory solutions allow you to model changes in real time. Sales and Operations Planning (S&OP) process integration empowers inventory analysts to adjust the inventory plan in one fluid, aggregate motion when resource or financial constraints drive the need for a change. 1 Retail Systems Research, Assortment and Planning: Changing Times, New Opportunities, November 2014

7 We ve seen an 8 to 10 percent inventory reduction in our distribution center with Inventory Optimization. It s worked very, very well for us. Our CFO is very pleased with the improvement in turns. And we have aggressive targets for further reductions. We believe we can achieve them while continuing to exceed industry fill rates. Pet Supplies Plus 7

8 Suite Components Manhattan s Active Inventory suite enables you to efficiently optimize your demand forecasting, planning, buying and collaborative planning processes from both service and profit-oriented points of view. By synchronizing supply and demand simultaneously, you can increase revenue and profitability with the lowest inventory investment possible. ACTIVE Demand Forecasting Single View of Demand with Greater Accuracy Our Active Inventory suite leverages a single view of demand to drive all inventory planning activities. Demand Forecasting uses a next-generation forecasting model known as the Unified Forecasting Method (UFM) to automatically anticipate and respond to changes in demand. The more volatile the demand, the more accurate your forecasts become. Whether you re forecasting network demand in a wholesale replenishment environment, forecasting by channel for omni-channel inventory optimization or analyzing the aggregated demand of a category for merchandise planning, Demand Forecasting provides the tools to ensure you re starting your inventory planning with the most accurate point of view on future demand. Demand Forecasting also provides unique capabilities around one of the toughest, most timeconsuming aspects of forecasting: managing forecast exceptions. Manhattan offers the ability to filter out the least critical exceptions, which ensures your forecast analysts are always focused on the most meaningful opportunities to improve your business. Perhaps more importantly, Demand Forecasting will also automatically detect and correct certain problems with your demand forecast, offering a solution that self-tunes based on the objectives of your business strategy.

9 ACTIVE Planning Holistic Planning, Architected for the Omni-Channel Enterprise Manhattan s Planning solutions span a broad range of capabilities, each designed to ensure retail organizations have a single view of their inventory planning needs. Our Planning solutions were designed to facilitate all your pre-season and in-season planning needs. Financial Planning Enables an iterative process of setting top-down sales and inventory targets, tracking performance, refining forecasts and reevaluating assumptions; develop category-level plans by channel with key performance metrics specific to your business, taking into account historical and planned assortment mix. Assortment Planning Support channel-specific metrics, structures, attributes and methodologies to optimize the pre-season assortment planning process, providing the flexibility to configure attributes for store, web, catalog and wholesale channels. Highly visual and intuitive approach to ensuring the perfect assortment wedge is designed to meet your customers demands. Item Planning Plan and forecast key performance metrics for your key items. Leverage multiple levels of the merchandise hierarchy down to the item level with an intuitive workflow and user-definable views. Easily pivot and morph the planning worksheet to best facilitate your planning process. Omni-Channel Planning Plan and track individual channels using channel-appropriate metrics and attributes. It also enables you to consolidate plans for all channels to manage inventory at an enterprise level. Combines support for each channel s unique structures, attributes and metrics with the ability to analyze and plan inventory across channels. Promotional Planning Create promotional offerings and plan the expected impact on sales and inventory. Define the promotional event, select and assign items to it and then leverage Demand Forecasting or traditional planning means to model the expected business impact. Store Clustering Create metric-based store clusters, which amplify traditional store classificationbased store groupings. Store Clusters can be leveraged in any of Manhattan s Planning solutions, which include storebased views. 9

10 ACTIVE Inventory Optimization Optimizing the Balance between Inventory, Sales and Service Replenishment Provides the industry s most sophisticated approach to multi-echelon inventory optimization, ensuring the least total network inventory required to achieve sales and service performance goals. Leverages advanced approaches to managing safety stock investments with easy-to-use simulation of financial impact of various strategies. Leveraging immediate insights into expected demand from Demand Forecasting, Replenishment combines advanced inventory science with easy to use and intuitive analyst experiences that results in improving both inventory and buyer performance. Vendor Managed Inventory (VMI) Provides suppliers the ability to offer replenishment as a service to their most valuable customers. VMI leverages all the sophistication available in our core Replenishment solution to ensure agreed upon end customer service levels are achieved while providing suppliers with valuable insight into actual product sell through and inventory performance metrics. For retailers, Replenishment provides omni-channel inventory optimization, which ensures inventory investments are shaped based on omni-fulfillment strategies. As a retailers sophistication in fulfillment options increase, the need to more tightly rationalize inventory investments becomes more complex. Manhattan provides the ability to shape inventory placement with full understanding of how it s being sold and fulfilled.

11 ACTIVE Sales & Operations Planning (S&OP) The Critical Link between the Inventory Plan and the Enterprise Manhattan s S&OP Workbench solution consolidates and compares the enterprise financial plan, demand forecast and projected inventory needs in aggregate across the coming weeks and months. Whether you re facilitating an actual S&OP process or simply reacting to macrolevel needs to adjust your inventory plan, Manhattan s S&OP workbench becomes the bridge between Planning, Demand Forecasting and Replenishment. It s easy to use, highly visual and immediately impactful to each of the inventory plan stakeholders across the enterprise. The solution enables what-if simulation of adjustments to the plan so all key stakeholders understand potential implications before any change is put into action. Often one of the greatest challenges of an S&OP process is translating macro-level plan changes into SKU-specific buying adjustments upon approval of the plan. Once the plan is set, S&OP Workbench takes top-down decisions and automatically converts them back to detailed, SKUlevel inventory procurement and replenishment plans. Manhattan ACTIVE Inventory Suite for Active Enterprises As a key component of our Active Solutions portfolio, our Active Inventory suite allows you to operate faster, move with agility and adapt to market and industry shifts. Manhattan Active Solutions allow enterprises to optimize large and complex operations, adapt to market and demand changes, and iterate and innovate at speed. By using our Active Solutions, an enterprise has technology that is always current, seamlessly interconnected and runs anywhere. With Manhattan, anyone who needs it can get the same rich view of actionable information, giving organizations a single version of the truth: whether it be inventory positions, customer orders or supply chain intelligence. That way, you can get and stay out ahead. Ready to get Active? Learn more at 11

12 Manhattan Associates. All Rights Reserved. manh.com