User-Friendly Inventory ControlRSI's work for Lantis Eyewear Corp. illustrates its inventory control management in this area. "Sunglasses generally roll out around January 1 each year, and the racks look identical to the untrained eye," RSI president explains. "By analyzing daily P-O-S data over time we are able to create replenishment algorithms that accurately identify high-sale items. The rack in a downtown store will require more fashion-forward items and women's glasses, for example, while a store in a resort location will run through sports and outdoor SKUs faster."
The company analyzes sales over a set period of time and factors a number of variables into the replenishment algorithms it creates. "Defining the best-selling items is part of the equation, but things change quickly in retailing, and we have to be aware of that going into the process," Williams notes. "For example, there are definite seasonal patterns to fashion eyewear purchase trends. They peak at a certain point and fall off after that. The raw data might indicate an ongoing sales trend, so awareness of industry patterns is an important part of what we do." RSI has coined the term 'consumer-centric' to describe its approach to category analysis. Consumer-centric category analysis is the result of combining category management and efficient consumer response (ECR) best practices, Jennings explains. "As chains evolve the need to segment items and stores changes with each analysis. Consumer-centric marketing relates to specific groups of consumers, as opposed to traditional product-focused marketing, thus allowing retailers and manufacturers to adopt more targeted promotional and, merchandising strategies," he explains. An important aspect of RSI's business is that the services it provides are Internet-based, a strategy that lowers costs and increases access for clients. Using RS-Net, the company's proprietary Internet service, clients can access their own user area to retrieve information by a simple mouse click, 24 hours a day, seven days a week. RSI recently teamed up with Internet security solutions provider Virtual Media Technology to further insure the safety and integrity of crucial data for its supply-chain intranet and extranet. "We know that security is a hot-button issue for retailers and manufacturers alike," Williams says. "Our new system involves a Checkpoint firewall and remote access encryption and authentication technologies". "Data transfer over the Internet offers important cost advantages over EDI [electronic data interchange]," he adds. "Our new comprehensive security solution lets us provide an added dimension of safety and comfort to our clients." |