Reduce Inventory Levels While Increasing Sales

Pamida, an Omaha-based regional operator of general merchandise stores and pharmacies, increased its total health department sales by 3 percent while decreasing related inventory costs by 25 percent during the first quarter of 2011.

“The inventory forecasting provided by iKIS is affording Pamida better inventory productivity and working capital advantage, allowing us to bring new inventory and better prices to our valued customers,” said Pamida’s CEO John Harlow.

Data Profits iKIS looks at the broader measurement of customer service level goals, purchase orders and replenishment levels. Through a combination of data modeling, vendor collaboration tools and accurate forecasting, it ensures that the right inventory is available at the right location when a customer is ready to purchase.

Retail health departments have a large number of products and vendors, making the use of iKIS style forecasting imperative to determining which products have the highest customer demand and ensuring the right products are available on the shelf. The high stock keeping unit (SKU) counts within these departments makes this inventory category a critical focal point for management control.

Pamida has met its replenishment and service goals on the large variety of health and beauty products required to support their customer needs, while requiring fewer investment dollars.

Source: Data Profits