The European Championship 2016 and inventory replenishment
Whether you love soccer or not, if you are located in Europe currently you can’t escape the fan-wear, public viewings, television broadcasts and general excitement. Emotions go high periodically during these types of sport events, be it the European Championship, the FIFA World Cup or the UEFA Champions League final.
Beer, snacks and goals
No matter if with friends, at public viewing or alone: beer, salted snacks and barbecue belong to a soccer game just as much as goals and fouls. To be prepared, breweries in Germany and Austria have increased their beer production by 35% to fulfill the demand over the game weeks. Salted snacks producers moved to four shifts production during the Euro 2016, and expected sales are 50% above comparable periods without sports events. The championship affects also electronics (television sales), sports & fashion (fan-wear sales soar during national games) and other branches. It’s hard to find a retailer who doesn’t use this event for marketing purposes these days.
Are you giving the wrong message?
Turnover is climbing, but for retailers these are challenging times too, because the wrong inventory forecast could have disastrous consequences. Retailers can no longer rely on gut feelings in their decision making. They have to ensure that their prediction for demand and sales is as precise as possible to avoid turning customers away because of empty shelves — and also to avoid being overstocked after the event.
Efficiency through automation
This is where replenishment automation can make a big impact. By automating the stock replenishment process, retailers can become much more efficient. Firstly, it is key to have all the necessary information available in one central place every time you need it. May it be stock in the stores and shelves, current sales on the POS terminals, transfers between central warehouses and stores or between the stores themselves. Knowledge is key, and preparation is everything. Secondly, it is crucial to have a state-of-the art calculation and prediction engine which builds on statistical models to detect seasonal sales patterns and trends in the historical sales data, but can also smoothen historical one-time peaks. Sales plans and budgets have to be incorporated in the calculation of future demands, too. Automatic jobs finally calculate transfer orders and purchase order proposals to replenish the central warehouses and the stores. Late changes in demand and store stock levels have to be considered immediately to avoid costly out-of-stock situations.