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News

Changes to Techniques to Replenishment to Stores and DC

News

The world of replenishment techniques is changing rapidly. After the development and deployment of classical ROP (Re-order Point), MPS (Master Production Scheduling) and DRP (Distribution Requirements Planning) techniques for many years, recently there is a drastic change in the adoption of more advanced techniques for replenishment using TOC (Theory of Constraints) and Machine Learning principles. The TOC principle came from the fashion retail industry, which needed faster techniques to adopt to short life cycle products and rapid changes in consumer buying behavior.

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NOOS Versus Pareto, who wins in Retail?

NOOS Versus Pareto, who wins in Retail?

News

A popular approach in fashion retailing to manage store level replenishment is to include a SKU (Stock Keeping Unit) into a NOOS (Never Out of Stock) supply program. The objective is to actively manage and guarantee shelf availability of that SKU. However, more often than not NOOS becomes a supply program for a range of SKUs without considering the “real” and “changing” speed of a SKU in a store. This “real” and “changing” speed differs from store to store as well as can change rapidly over the life span of a SKU.

Instead of using a fixed linkage between a product and a supply program, which will be only a reviewed and adopted infrequently, using a more dynamic method as reviewed below is better suited for fashion and softgoods products.

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New Office in Amsterdam

News

ebp Global is continuing to grow.  We are proud to announce the addition of a new Continental Europe office located in Amsterdam.  This division will service our clients across the European mainland as well as address any potential post-Brexit issues.

World Map 2018

Machine Learning applied to Store and Account Clustering

News

The Problem Statement

Store Clustering has been treated for far too long as a necessary evil and nuisance in the fashion retail industry. The classical approaches of using grading stores and store size to cluster stores are outdated and do not reflect the retail complexity of today. Because store clustering mostly performed manually, analysis of rich retail data is impossible. Even excel cannot perform this task.

Before we go any further, let us first review the objective of store clustering, i.e. what represents a store cluster:

A cluster is a set of similar stores in terms of category and product distribution, meaning that the same selling behavior exists throughout the cluster HENCE should have the same assortment composition and width, only varied by depth depending on the sales volume and/or size.

ebp Global in conjunction with its technology partners Datacrag and Retailisation have pioneered the application of machine learning for store clustering, as an integral part of the merchandizing process both as a historical evaluation of assortment performance in the store cluster as well as a future determination of the best assortment going forward.

As such, it supports vital functions in the merchandize planning process namely sales planning, range planning and buy planning. The buy plan in particular requires an assortment at store level to determine the correct buying budget per store, initial allocation and open to buy management during in-season.

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Launch of Integrated Assortment Planning

News

We are pleased to announce the launch of a new approach to the merchandise planning process with Integrated Assortment Planning (IAP). IAP functions include store clustering using advanced machine learning capability, sales planning, range planning and buy planning, including open-to-buy management. Like DMS, our inventory management application, IAP is delivered via the cloud.

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The Omni Channel Challenge in Global Logistics

News

The Problem Statement

For many companies in consumer goods, retail and other industries, also referred to as shippers, the diversification of distribution channels from a single channel to an omni-channel structure includes many challenges. One challenge we want to focus on in this article is the impact on managing inventory and demand fulfillment in global logistics. How can we manage and understand the global movements, irrespective of how the shipper or logistics provider, also referred to as carrier, manages the global product flow? The key business questions are:

  • How do you achieve visibility and control in a global multi-node supply chain?
  • Where is my order and where is my inventory?

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Planning Architecture in a Omni-Channel World

News

The Problem Statement

Ever since the early 80’s we have worked with a traditional 4 tier planning and execution architecture incorporating all the major elements of a supply chain, namely demand, distribution, production and suppliers. The 4 tiers include strategic planning, tactical planning, operational scheduling and execution or also referred to as the transactional backbone.

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New Frontier in Procurement

News

The Problem Statement

It is time to change course. Indirect procurement has been treated as a stepchild for too many years. Whilst many companies invested in new procurement platforms, the indirect procurement area has always been kept separate from the mainstream core business and their processes. When company refer to procure to pay or now source to pay, then they meant the direct side. However, significant synergies can be achieved by cross using the approach, platforms for methods across the two areas of procurement.

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Square Root Law

News

The Problem Statement

The effect on maintaining the same item in more than one location on the overall levels of inventory escapes many practitioners. The principal problem is that an item stocked in multiple location increases the overall inventory levels. The key to the problem is the term location. Whilst we all understand physical warehouses being a location where inventory is stored, location can also be virtual locations or contracts where inventory is ring-fenced. Let us explore what this all means; we start with the relationship of inventory levels and the number of locations described in the square root law.

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