BOSTON and ANN ARBOR, Mich., Nov. 12, 2015 /PRNewswire/ -- ToolsGroup and Retail Velocity announced today that they have signed a partnership to bring together Retail Velocity's Demand Signal Repository (DSR) with ToolsGroup's Demand Sensing analytics. The partnership opens up Point of Sale (POS) demand sensing performance breakthroughs to a wide range of retailers, manufacturers and distributors that previously lacked access to near real-time POS data.
Key benefits available through the new solution are:
- B2C and B2B manufacturers and distributors can now acquire data across their retail distribution network, bringing unprecedented demand connectivity to companies previously one step removed from this data
- Retailers can now use POS data to optimize Vendor Managed Inventories (VMI) across a wide range of their suppliers
Sensing demand using downstream data (such as POS, store and DC inventories and promotions) generates major improvements in forecast accuracy and inventory optimization. To illustrate, ToolsGroup customer and vertically integrated retailer Amplifon (known by its brand Miracle Ear), recently deployed POS Demand Sensing to reduce inventory levels by 18 percent and inventory obsolescence by 40 percent. ToolsGroup customers with captive or a few closely connected retail networks have achieved similar results in industries such as coffee, cosmetics and mobile phone retailing.
The gap in the marketplace exists where data is required from many disparate retail networks. ERP systems usually cannot access nor maintain the data at the highly disaggregated level required for demand analytics. Nor can they cleanse and harmonize the POS data across all retail networks consistently. Retail Velocity and ToolsGroup solve this problem by incorporating the VELOCITY® DSR into ToolsGroup's SO99+ POS Demand Sensing platform to allow businesses to sense demand across multiple retailers and plan within a single model. The DSR cleanses and harmonizes retail POS, inventories and DC shipments, and integrates this data seamlessly within the SO99+ platform.
"This is an entirely new opportunity to deploy POS Demand Sensing where data wasn't previously available, introduce a single model platform to leverage downstream data, and drive end-to-end planning," said Pat Smith, ToolsGroup's General Manager for North America. "The partnership will help manufacturers, distributors and retailers achieve breakthrough improvements in demand forecasting, service level and inventory efficiency."
"Taking advantage of data at the point of consumption to achieve near-real-time representation of consumer behavior leads to performance improvements and enhanced supply chain inventory optimization," said James Cooke, Principal Analyst at Nucleus Research.
"Connecting ToolsGroup's SO99+ platform to VELOCITY® store-level demand signals will inevitably generate improved forecast accuracy which in turn leads to improved sales results and lower returns and markdowns," concluded Jennifer Beckett, VP, Sales and Marketing at Retail Velocity.
The joint ToolsGroup and Retail Velocity solution is available now through both ToolsGroup and Retail Velocity.
ToolsGroup is a global provider of "Powerfully Simple" supply chain planning and demand analytics software. Our customers overcome volatile demand and challenging supply chains to generate accurate baseline and promotion forecasts and outstanding customer service levels with less global inventory. Reliable behind-the-screen technology and scalable statistical models enable highly intelligent data-driven decision making, combined with ease of use. ToolsGroup's solutions span key supply chain planning areas such as Demand Forecasting and Collaboration, S&OP, Demand Sensing, Promotion Forecasting and Multi-Echelon Inventory Optimization (MEIO). For more information visit www.toolsgroup.com.
About Retail Velocity
Retail Velocity is the thought leader in demand sensing, analytics and shaping. As the CPG industry's most experienced - yet flexible - retail data and analytics solution, VELOCITY® collects POS data from 300+ retailers and empowers manufacturers to bridge internal silos and develop solutions for improved on-shelf availability, promotion execution, replenishment and product launches. Our successful track record is why leading CG brands have entrusted us with their data needs for over two decades. For more information visit us at RetailVelocity.com.
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