For years, retailers and manufacturers have struggled to reduce out-of-stocks. On average, retailers lose 3.1% of their base sales due to out-of-stocks and up to 15% during promotional events. For CPG manufacturers, the lost base sales are approximately 8% and lost promotional sales are approximately 16%.
Today, it is more important than ever to understand what is going to happen rather than what has happened. Getting the right stock to the right place at the right time is even more critical in today’s challenging economy. An improved forecast can balance supply and demand and improve consumer loyalty.
The question is “How do I reduce my inventory levels without risking disappointing my customers?”
Diagonal has the answer. We have created the most robust and only managed service called Forecasting on Demand for the retail and CPG industries. With our Forecasting on Demand service, retailers and CPG organisations can:
- Improve cash flow by decreasing inventory levels
- Improve on-shelf availability
- Reduce warehouse costs
- Reduce manpower required to build and maintain forecast
The managed service element of the service means:
- More robust and accurate forecast using the most granule level of data
- Instant access to forecasts online
- Data fed back into your current ERP system
- No software to buy or integrate
- An operating expense model
Why Diagonal?
With over 20 years of retail and CPG (FMCG) experience, Diagonal understands the critical factors it takes to improve revenue and profitability in these sectors. Our consultants have worked in the retail and CPG industries and understand the challenges your company faces.
We are not technologists, but problem solvers. We diagnose your business issues and recommend services and if necessary technologies that will most cost effectively meet the objectives for your business.