MonarchFx is offering an unparalleled opportunity for inventory agility and transparency. Estimating future demand forecasts is one of the most fundamentally valuable, but frustrating challenges in supply chain optimization. Often forecasts are incorrect, but getting demand forecasting right provides the critical forward-looking picture that shapes how a company will deploy its supply chain effectively. Demand planning is the effort to increase forecast accuracy and customer service levels, having the greatest impact on business profitability. Providing the best plan and capturing information as close to the selling season, using pre and in-season data is a critical element in giving the customer what they want, when they want it, and where they want it.
If consumers have unlimited and instantaneous access to what they want, either a keystroke away or in a store, there is a need for a platform solution that offers a seamless integrated uni-channel (delivering products to customers with a completely unified experience) distribution platform that will preemptively deliver products and services first, fast, and often.
In order to meet this challenge there is a need for complete transparency and visibility for inventory ownership. In addition there is a need to be able to have inventory readily available to deliver to the consumer within a shortened timeframe. This is a vertically integrated logistics supply chain, where the pursuit of supply chain transparency is intensifying, driven by the need to control costs while responding to uni-channel demand. Visibility into the supply chain is a competitive advantage, as businesses continue to be driven by the need to make decisions faster to effectively meet demand.
The path to supply chain transparency begins with an end-to-end enterprise plan. Connecting on a central application platform with trading partners, allows for scalability and accessibility to data enabling decisions to make closer to the consumer buying season, resulting in improved profitability.
Poor supply chain visibility can adversely affect business through increased inventory costs resulting from inventory build-up, increased freight costs from premium shipping, loss of revenue due to product shortages, and lack of timely and consistent collaboration with suppliers.
Key capabilities for attaining supply chain visibility are driven through a connected information networked platform resulting in:
- Synchronization of end-to-end planning.
- Minimize inventory costs as the system optimizes distribution through demand planning.
- Quick access to information and inventory.
- Bridging the gaps through on-time reporting.
- Proactive analytics for informed decision making.
- Efficient collaboration with logistic trading partners.
- Success depends largely on the ability to manage the unexpected. Supply chain software enables visibility to identify key metrics and create alerts to enhance exception reporting, enabling management of out of tolerance performance issues.
- Supply chain visibility automates the decision process, driving flexibility.
- Improved communication allows you to maximize revenue by decreasing out-of-stocks and ensuring products are available and delivered to customers in the timeframe promised, being able to eliminate and minimize unplanned supply chain disruptions.
- Improved ROI through inventory and markdown reduction.
Obtaining enterprise wide visibility calls for integration of all inventory databases, many of which do not exist today. The assumption that you can only sell what is in store, is in the past. Customers need unfettered visibility into what is available across the enterprise. The retail supply chain has traditionally been focused on getting the right product, to the right place, at the right time, at the lowest price. This product-centric approach has evolved to one that is much more sensitive to the needs of the customers, hence the customer-driven supply chain. This drives the supply chain to be not only cost efficient, but also to tailor product demand at the right location, taking on new fulfillment challenges that requires a shift of how an organization runs their planning and allocation methodology.
While inventory visibility is a crucial starting point for uni-channel fulfillment, ongoing inventory accuracy is critical to its sustainability.
MonarchFx’s platform is built on a technology solution that achieves inventory flexibility. This enables allocation decisions to be made by the seller close to selling season and to the correct location. The technology platform offers a seamless view of the sellers’ inventory, and is connected to all alliance members providing the seller an opportunity to move inventory to a store or a different distribution location based upon real-time sales to minimize markdowns and stock-outs.
MonarchFx’s “Best-In-Class” technology platform provides for improved oversight for the planning and allocation processes in support of the omni-channel challenge which has been impacted by:
- The customer needs which have become increasingly complex.
- Increased demand volatility.
- New product introductions without allocation history by channel.
- Products have shorter lifecycles creating the need for accuracy on launch forecasting.
- Lack of consistency of system integration at the point of sale.
- Seller planning processes are entrenched in manual spreadsheets.
With MonarchFx’s cloud based platform solution, the seller will experience a best practice application based upon a holistic view of the enterprise that provides visibility to inventory by location, fast response to fulfillment to meet demand, and the flexibility to react in real-time with reporting analytics and KPI’s in support of decision making.