Automatic replenishment can help retailers sell more and increase profits by reducing out-of-stock situations. It uses sales history and patterns to calculate optimal inventory levels to avoid stockouts. This improves the customer experience by keeping shelves fully stocked with the items they want to purchase. The LS Retail solution is an end-to-end retail platform that provides automatic replenishment capabilities. It has been successfully implemented in over 1,900 retailer customers around the world.

1. Automatic Stock Replenishment in Retail
Its Impact to Sales and Losses
Riga Food
2011 September 7-10

2. Topic in Detail
I’ll be talking about how using Automatic
Replenishment…
•Can help you sell more
•Can help you get a bigger profit

3. Why we talk about that at all
 Because, unfortunately, customers buy what
they want to buy, not what we want them to
buy.

4. How the customers feel about
the issue?
 “They haven’t brought what I need to buy today
again.”
 “The ‘Best before’ date on the item is not OK.”
 “I hate having to go to some other shop to buy
what I haven’t got here.”
 “I don’t like the view of the empty shelves.”
 “They don’t love me!”

5. What the customers do about
the issue?
 I’ll make this shop my Number Two/Three
option (The lucky one)
 I’ll STOP visiting this shop altogether
(And you’ll never find out that)

6. What the retailers do about the
issue?
 They replenish inventory in retail outlet:
 Externally (Manufacturers, Vendors,
Wholesalers)
 Internally /Today’s topic/

7. Internal Replenishment
 Mostly manually:
 Not accurate (though often believed so)
 Too subjective
 Too time consuming

8. Wider picture
 You lose sales because of Out-Of-Stock
situations
 You lose money because you overstock
 You lose money in the unnecessary price
markdowns and clearance sales
 And you lose customers!
What is a possible solution to that?

9. Automatic Replenishment
 It is not a panacea
 But many of our customers who adopted it found
that it was exactly what they really needed
 We’ve got the right knowledge how to
implement it
 We’ve got the right tool

10. Customer testimonials
„New Vision are experts in the complex Retail IT systems.
They can evaluate the problem’s impact on the business
processes, assign the correct task priority or just simply do
consulting via the phone. That’s the big advantage in
comparison with the general helpdesk or call center
companies.
Andrius Šemeškevičius
„RIMI Baltic" IT director

11. The right tool
 LS Retail is the leading provider of end-to-end solutions for
the Retail and Hospitality industry.
 LS Retail is the most flexible solution on the market that
can be very fast adapted to the changing company needs.
 According to customer surveys, using LS Retail as the
platform for their solutions, we can help retailers achieve
30% more ROI than with alternative platforms.
End-to-End Retail Solution
based on Microsoft Dynamics

13. LS Retail Coverage
 1.900 customers
 35.000 stores
 77.000 POS
 130 Countries
 33 Languages

14. LSR Replenishment –
How does it work?
 Different type of retailer:
 Food / Fashion / Electronics / DIY / Restaurants / …
 Different item types:
 Fast / Slow moving
 New / Seasonal / Regular
 Different ordering processes:
 Centralized / Decentralized
 Different delivery processes:
 Vendor → Store / CWH → Store / Vendor → CWH → Store

15. Calculation methods
Average Manual Stock
Usage Estimate Levels Like-for-Like
• Sales History • Estimated • Minimum • Replenish sold
• Same year usage per day • Maximum stock
• Past year
• Seasonal
calendar
• Usage per day
• Sales History
Adjustments
• Zero Days

16. Out of Stock Days
Day Daily Sale
 Example:
1 20
 The period is 10 days
2 10
3 5
4 15
5 10
6 10
7 10
8 0
9 0
10 0
 Result:
15+10+5+10+10+10 +10+0+0+0 = 70
On Average: 70 / 10 = 7 pieces per day
Without Out Of Stock: 70 / 7 = 10 pieces per day

17. Forward Sales Profile
 Example:
 Workday = 15.08.07
 Back Period= 6W
 Forward Period = 4W
Weeks from today’s Unit Sales Last Unit Sales This
date Year Year
-6 20 30
-5 30 35
-4 30 35
 Result:
-3 50 55  20+30+30+50+50+30 / 6 = 35
-2 50 36  60+100+50+70 / 4 = 70
-1 30 40
+1 60  Calculated Forward Factor:
+2 100 70 / 35 = 2.0
+3 50
+4 70

18. Summing up – What
 Before - is a modern ERP going to bring value?
 Now - WHICH TOOL TO CHOOSE?
 With Automatic Replenishment you will sell more,
you will lose less and you will get a bigger profit.

19. Summing up – What in Detail
 You will reduce the number of stockouts!
 You will increase the number of items that meet the
company’s in-stock goals!
 You will reduce amount of time spent on replenishment!
 You will sell more!
 And you will create a better
shopping experience for you
customers!

20. Summing up – Why and How
 There aren’t many IT companies in Europe with
190+ employees, 90% of whom are dedicated for
Retail.
 We deeply specialise and our customers love it!

21. The right knowledge: Facts
about the company
 In Retail IT since 1993
 In Navision and LS Retail since 1999:
 MICROSOFT – Gold Certified Partner (5
competencies)
 LS Retail – Gold Certified Partner
 120+ NAV customers
 Implementations in LT, LV, EE, UK, RU, UA, CZ, PL,
RO, SE

22. Call to Action
 Let’s talk
 Free diagnostics and customer-tailored
presentations
 Visit www.new-vision.com
 Visit www.lsretail.com