Models for supply chain excellence, including vendor managed inventory (VMI); collaborative planning, forecasting, and replenishment (CPFR); efficient consumer response (ECR); and demand-driven supply networks (DDSN), are proving difficult for most retailers to implement. A fundamental challenge inherent in these models is sharing point-of-sale demand data with suppliers. Although EDI 852 is a common solution, retailers are finding EDI alone does not solve the problem and provide the promised benefits. Why? Because sharing data alone is not enough… suppliers need a tool to analyze the data, draw out insight and then take action.
Now, there is a solution – Accelerated Analytics provides the tools necessary in a hosted solution, so neither the retailer or supplier have to make a costly technology investment.
Accelerated Analytics is a hosted power tool for sharing point of sale (POS) data analysis with suppliers. EDI 852 product activity data based on point of sale (POS) transactions and transmitted via EDI 852 is the backbone of a successful vendor managed inventory program. Unfortunately, our experience has shown very few suppliers are able to use the information. The suppliers we’ve spoken to are frustrated by what they perceive as an overwhelming amount of point of sale data, because they don’t have the tools to analyze and report. Sending data via EDI 852 to suppliers simply does not translate into an optimized supply chain. Retailers are frustrated with suppliers because they cannot actively participate in vendor managed inventory and sales promotion without the data. It’s a no-win for both sides and a huge lost opportunity.
Until now, the best retailers could hope for was to transmit EDI 852 files to their suppliers, who would accept the data and either print a static report or export the data into Excel. Already busy suppliers found static reports to be of limited use. Getting the IT department involved to deal with a huge data file was expensive and too much of a hassle.
Accelerated Analytics changes this entire picture by accepting point of sale data via electronic data interchange EDI 852, or nearly any standard format from the retailer, and providing it to the supplier via our web based point of sale analysis power tool. Accelerated Analytics hosts 100% of the hardware and software, so neither the retailer or supplier have to invest a single dollar.
What if my organization is not using vendor managed inventory (VMI)?
Even if your organization is not currently using vendor managed inventory (VMI), Accelerated Analytics can provide a significant supply chain benefit by reducing costs, reducing inventory levels and increasing profits. Efficient supply chain management requires the rapid and accurate transfer of information throughout a supply system. Accelerated Analytics accomplishes this goal quickly and with no expensive new infrastructure. Accelerated Analytics can be used as a tool for VMI or as a stand-along solution separate from VMI.
What if my organization is not using EDI or only using EDI with a small percentage of vendors?
No problem, Accelerated Analytics can accept POS data via nearly any custom data format. In fact, in many situations, there are benefits to not using EDI because we can accept a richer and more granular data set, which improves the analysis results.
Our suppliers are not asking for POS data.
No surprise, they probably lack the tools to manage and analyze that volume of data and they know with greater knowledge comes greater accountability. Successful business transformation does not begin as a reaction, but rather because business leaders have the vision to proactively invest in tools which drive their business forward faster than their competition. If your organization was the market leader in supply chain collaboration which improved your in-stock and inventory turns by 25 or 30%, what would happen to your market share position?
What is CPFR?
(CPFR) Collaborative Planning, Forecasting and Replenishment is a business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demand. Accelerated Analytics provides the infrastructure to support CPFR by connecting retailers and suppliers together with a POS data analysis tool, shared business best practices and exception management.