Consumer-Driven Replenishment

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Placing the Right Product in the Right Store at the Right Time at the Right Cost.

The need for rapid response to consumer demand is critical to being competitive. But most current methods used by consumer products companies and retailers to manage inventory result in excess stock, driving increased costs within the supply chain. Capgemini’s Consumer-Driven Replenishment (CDR) solution is a supplier-generated multi-tier plan for forecast and replenishment that incorporates each link of the supply chain, including stores, distribution centers and plants. Its features include:

• Point-of-sale (POS) information that drives replenishment from stores to manufacturing plants.
• Advanced Planning Systems (APS) that fully integrate all elements of planning in one platform: POS forecast, promotions, inventory, lead times and capacity.
• Retailers have visibility and control over the store plan and closely monitor the supplier’s performance.

Realizing the Benefits of an Integrated Supply Chain

Capgemini’s CDR solution drives benefits for both retailers and consumer products manufacturers. The retailer significantly reduces inventory and replenishment effort, while the manufacturer gains control over its products’ replenishment all the way to the store level.

In one case, Capgemini implemented CDR with a consumer products company, resulting in significant improvement, including:

• Inventory turns that are closing in on the 5.5 target.
• Fill rates of 98%.
• Order forecast accuracy better than 80% at the regional level.
• In-stock service at 95%.

CDR can also help consumer products and retail companies improve their ability to quickly respond to changes in demand and supply.

To learn more, read Capgemini’s CDR whitepaper: Consumer-Driven Replenishment: A Collaborative Approach – Helping Retailers and Suppliers Gain Greater Control of the Replenishment Process