80% of the results of a retailer depend on the execution of the strategy. Optimizing operations is a critical part in the retail business. Indeed, the best pricing policy is useless if items are not available in stores at the right time.

ibs AMS has integrated the latest optimization techniques to serve the Supply Chain Operations Suite and optimize the execution of the retailer strategy. Taking into consideration the high level of risks related to unexpected changes, it proposes fine-tuning of the processes, minimizing risks and maximizing the execution process efficiency.

INTEGRATION INTO THE BUSINESS

The ibs AMS optimization engines are fully integrated in to the Supply Chain Operations Suite. Optimization can be be performed on:

• Replenishment. Based on forecast decomposed models (retail price elasticity in particular) and joined to ibs Central and ibs Store services, ibs AMS provides both replenishment triggers and volumes at the item store level to ensure best stocks levels in stores and DC.
• Promotions Allocation. Combined with the Promotions policy optimization, it allows optimizing the items allocations in stores, with various business scenarios (bottom-up, top-down, considering BOH or TIL…)
• Ordering. In addition to replenishment optimization, ibs AMS can add an additional layer, combining replenishment needs at the item levels to group orders to suppliers and maximize ordering levels to reduce units costs by items. ibs AMS can take into consideration all the Referential information related to costs, transportation, insurances, incoterms, supplier negotiation, additional costs into its simulations.

Once again, the native integration of ibs AMS into the Retail Business Suite coupled to the simulation portal and forecast engine, allows users to leverage their capabilities and maximize the efficiency of the operations, reducing risks and maximizing results.

RESULTS AND BENEFITS

Real implementations of ibs AMS have exposed actual benefits. For example, promotions allocation optimization embedded within the right allocation process has reduced out-of-stock levels of estimated 12% to 14%.

The ibs AMS optimization solutions are fully dedicated to supply chain operations suite optimal use. They allow to outperform classical policies by introducing latest optimization techniques without impacting business processes and control specific risk related to operational business.