Invent DR.X

Anticipate and Adapt to Market Dynamics with Our Demand-driven Replenishment System

Invent’s demand-driven replenishment system INVENT DR.X forecasts customer demand and manages inventory positions across the store and warehouse network. As retailers know too well, demand forecasting and replenishment have
 a major impact on profitability. DR.X integrates advanced analytics, latest scientific forecasting and optimization methods into its decision algorithms to generate maximum profit from retailer’s replenishment decisions.

DR.X sets profit-maximizing reorder points for all SKU/store and SKU/ warehouse combinations by balancing the tradeoff between inventory holding costs and lost sales margins. The system enhances inventory performance with better inventory turnover, reducing lost sales and markdowns while maximizing profitability in the process.

 ACCURATE FORECASTING

DR.X generates demand forecasts for every single SKU at each location. Accurate forecasting requires an accurate reading of the past. The Invent forecasting engine prepares the data by taking care of outlier detections and effects of one-time events for robust and reliable forecasts. DR.X calculates estimates of lost sales based on stock-out data and uses this information to create more accurate predictions of future demand.

Big Data In addition to historical sales data, DR.X utilizes publicly available data (such as weather forecasts) and customer-specific data such as marketing calendar and product features.

Lost Sales Correction Monitors and reports lost sales and stock-outs; incorporates this information into demand forecasting for more accurate estimates of future demand.

Robust Forecasting DR.X generates demand forecast at SKU/store level while taking care of outlier detections and effects of one-time events for robust and reliable forecasts. System learns from its past performance and improves its accuracy every day.

Product Segmentation Segment your products by volume, demand and lifecycle stage and manage its forecasting and replenishment tailored for each segment.

Promotions and Seasonality DR.X analyzes how different promotion types affect SKU/store pairs and adjusts estimates of future demand accordingly. The system determines product seasonality footprint and reacts accordingly in order to increase accuracy of future-demand.

 

INVENTORY OPTIMIZATION

DR.X determines the profit maximizing reorder points and shipment quantities for each SKU-store and SKU-warehouse combination. The system selects the most suitable model based on the product’s demand behavior from an extensive library of mathematical inventory algorithms.

Customized Solution System features are customized to fit the unique needs of each retailer. Custom features include but not limited to; min/max shelf quantities, case packing types and sizes, vendor constraints, product sets and lead time variability.

Omnichannel and Multi-Country DR.X forecasts omnichannel demand streams at store, region, SKU level and replenishes inventory in order to enable omnichannel distribution. The system supports replenishment decisions for stores and warehouses in multiple countries, providing users with full control of their global inventory through an integrated framework.

Warehouse Replenishment DR.X offers a truly integrated solution for retailers, combining replenishment planning decisions from stores and warehouses. Handles complex network relations in the supply chain such as multiple depots, country warehouses, and hub-spoke relationships among stores.

Allocation of Inventory and Capacity The system rank orders each unit of inventory shipment based on sales potential and uses scarce resources (available inventory or limited warehouse capacity) in a way that maximizes total profit for the planning horizon.

 

LIVE SCIENTIFIC TESTS AND CONTINUOUS LEARNING 

DR.X implementation results are tested using Invent’s proprietary testing methodology. Fully controlled scientific experiments are conducted to measure the impact of DR.X on net profit and other KPIs and compare it with the legacy system. The forecasting and optimization algorithms continuously learn from system performance and tailor the system parameters by location, product, and customer to create maximum impact.

 DR.X Checklist

  • • Optimized inventory for maximum profit
  • • Higher sales
  • • Lower average stocks
  • • Lower markdowns
  • • Higher GMROI
  • • Higher inventory turnover
  • • Fewer expired products
  • • A simpler workflow to enable companies deploy consistent strategy across categories and business units

System Features

Cloud-Based Invent MAPS leverages cloud for agility, flexibility and return on investment. MAPS requires no IT investment and is offered as a pay-as-you go plan.

Smart Reports on Tableau MAPS provides users with customizable Tableau reports on product’s lifecycle to monitor performance and provide insight.

Compatible MAPS can be integrated with all ERP systems seamlessly. Our user interface is accessible from any HTML5 compatible device.