Neogrid DDR for Fashion 2018
We believe that if the consumer did not buy something, no one has truly sold it...
so we align fashion & apparel companies
to actual consumption.
We are experts in synchronising your business to actual demand
-- making your product always available, at the right place, time and quantity.
We are Neogrid -- a company providing automated supply chain management.
Born in 1999 from an EDI platform, we specialise in the aggregation, processing, analysis and communication of supply chain data and the formulation of business processes.
The initial idea was to integrate documents in real time and electronically perform the exchange of inventory and sales data from the stores, so that suppliers and retailers can plan ahead together by feeding valuable information into a network, in order to never run out of stock the stores.
Today, only Neogrid offers end-to-end Supply Chain Management solutions in one single platform, including Smart Allocation and Demand-Driven Replenishment tailored to the fashion industry, based on our unique data integration expertise.
We also use the Theory of Constraints and work close together with the Goldratt Institute to identify where most progress can be made for faster results with generating more cash.
We help you enhance the customer experience in an Omni-channel retail world,
by maximising your in-season trading performance.
We believe that improving availability on the shelf and online helps grow sales, while improving inventory productivity at the same time.
You can achieve this through our in-season inventory management with:
Whether or not you are using simple replenishment methods like Min/Max, SOGO, or Weeks Cover, then we will deliver significant improvements to all of your current methods.
Store ranges or assortments can be dynamically fine tuned in-season using our advanced analytics and prioritising replenishment to the stores that can sell more at full price.
Due to the level of automation, you can run your merchandising team with less staff or release their time to make better, more considered decisions.
Turn the page for more information! You can also use the arrows on your keyboard to surf this site.
Many manufacturers, retailers, wholesalers and e-sellers have already increased their profits
through our expertise in reducing out of stocks while maintaining high availability at the same time.
Retailers can now manage availability and customer service levels in their own stores, concessions or shop in shops, online and for joint venture partners or franchisees.
Our principle solutions for these customers are our allocation and replenishment solutions, supported by EDI and data collection and analysis so that a vendor managed inventory solution can be offered to joint venture partners or franchisees.
We can also help companies with Distribution Requirements Planning (DRP).
A growing number of retailers and manufactures have a wholesale channel, which we can also support to improve processes and results.
Our solutions can be divided into four main, interrelated components
Sales profile based
Re-forecast season demand weekly
Guidance for rebuying, where possible
Guidance for markdown strategies
We help maximise the productivity of your merchandising team
and automate their decisions.
Allocation and Demand-Driven Replenishment
Neogrid’s Smart Allocation is equipped to address all three of the most commonly used types of Allocation;
1) Initial Injection of new Merchandise,
2) In Season covering expected (promotional) uplift,
3) End of life push. So in the case where a new item is allocated, the forecast uses the history of ‘like’ items with similar attributes to pattern the forecast after.
Seasonal lines are characterised by not having their own sales history because they are new for that season. Hence Neogrid’s Demand Driven Replenishment uses a special responsive algorithm that does not depend on history, but reacts very fast to early sales results.
It starts to tune into actual demand at the third delivery to the store. If, for example, you deliver to stores twice weekly, our responsive demand driven algorithm starts tuning itselves in a week and a half.
Online sales also benefit from this fast reaction. This is because a slow moving SKU in a store will typically show a higher level of movement online, as online demand is equivalent to multiple stores in most cases.
When forecasts indicate that the product will not sell out when planned, clearance activity starts to make sure the sell through goal is achieved.
The Neogrid solution will calculate an ideal service level. It does this with reference to the Normal Distribution, a statistical distribution widely used for this purpose.
See for yourself how some industry fashion leaders have synchronised their business to actual demand.
Fashion retailer with 10,000 stores worldwide, covering over 3 million SKU locations.
Ambiguous measurement and reactive inventory management
Difficulty in managing demand fluctuations
Excess stock and out-of-stocks
Availability increased by 35%
Reduction of lost sales by 25%
Improved risk management at DC and VMI for wholesale customers
97% sales increase in wholesale sales for VMI customers
Retailer with approximately 240 shops across Europe
High markdowns and out-of-stocks
Complex supply chain with imbalanced inventories
Long planning cycles and limited mix of products
Implement demand-driven replenishment with increased replenishment frequency
Increase profit, enable quicker response to customer demand
Use KPIs for measurement across all points of contact
10-15% increase in sales, confidential increase in full price sell through
Increased inventory turnover, decreased lost sales
Complete roll out to all stores, extension of responsive supply chain with suppliers to distribution centers
Much higher merchandiser productivity. Company growth without equivalent headcount growth