What SymphonyIRI Group Customers Are Saying
"We are continuing our relationship with SymphonyIRI Group because they deliver the superior census-based, high-quality data and consumer insights we need to effectively run our business and drive profitable growth. Their vertical beverage alcohol expertise and software solutions are unmatched in the industry."
Howard Romm
President
Republic Beverage
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5/22/2008
New IRI Out-of-Stock Monitoring™ Solution Tackles $6 Billion Dollar Problem
Initial Pilots Indicate New Solution Can Help Manufacturers and Retailers Reduce Out-of-Stocks by as Much as 30%
Chicago and Miami Beach – February 28, 2005 – Over $6 billion dollars is drained from the CPG and retail industry every year in the U.S. because of out-of-stocks, according to estimates from the Grocery Manufacturers of America — six billion that the industry can ill afford. The out-of-stock problem remains one of the central barriers to improving profits and margins for CPG manufacturers and retailers alike. To address this long-standing challenge, Information Resources, Inc. (IRI) today unveiled its breakthrough Out-of-Stock Monitoring™ solution. The announcement was made at IRI’s Reinventing CPG and Retail Summit 2005, taking place February 27 - March 1, 2005, at the Fontainebleau Hilton Resort and Towers in Miami Beach, Fla.
The IRI Out-of-Stock Monitoring solution is one in a series of solutions to be introduced based on IRI’s MarketKnowledge™ Platform, a revolutionary new capability that provides integrated, daily, point-of-sale data on-demand, by named retailer, enabling manufacturers and retailers to dramatically improve revenue performance and retail execution. IRI’s MarketKnowledge Platform currently offers daily data from seven leading retailers: Albertson’s, A&P, Brookshire Grocery Company, Giant Eagle, Fred’s, Food Lion, and Walgreens.
Using daily retail sales data combined with sophisticated automated analytics, the IRI solution helps identify both chronic and isolated out-of-stock incidents on a store-by-store basis. The solution enables both Direct Store Delivery (DSD) and Warehouse-based CPG manufacturers to pinpoint where out of stocks are occurring by store, by SKU. Empowered with this information, manufacturers can then zero in on the root-causes of out-of-stocks, such as shelf-space, order quantity, or warehouse delivery schedules to resolve the contributing factors. Flexible daily exception alerts allow manufacturers to direct their field sales force or brokers to identify and fix patterns of sporadic out-of-stock conditions.
This new approach uses daily sales data and analysis across multiple retailers to spot granular trends that weekly or monthly summary reporting simply can’t address. The IRI Out-of-Stock Monitoring solution is part of the IRI Retail Performance Management™ Suite that uses daily data to improve collaboration between manufacturers and retailers — with the objective to reduce out-of-stocks, improve promotion effectiveness and achieve consistent and rapid new product introduction distribution intelligence.
“Manufacturers and retailers have been struggling with the out-of-stock problem for years,” said Bill Nowacki, President of IRI’s Business Performance Solutions Group. “The out-of-stock intelligence delivered by this solution is the foundation for addressing a host of retail execution issues and will be instrumental in helping manufacturers achieve greater revenues and profits. We believe this solution will be heralded as a major breakthrough for our industry.”
According to AMR Research’s January 31, 2005 “Optimizing Inventories” report, “Software for inventory optimization offers a quick Return on Investment (ROI) and an improvement in service for multi tiered networks. Companies deploying inventory optimization applications report an ROI in weeks to a few months, with a 2% to 10% improvement in service based on orders shipped complete.”
First Practical Solution to a Long-Standing Problem
While there are multiple reasons for why an out-of-stock situation might occur, at least 30% of them can often be addressed based on improved visibility at the store level.
The IRI Out-of-Stock Monitoring solution detects potential out-of-stock situations based on lower than expected unit sales for specific stores and out-of-stock SKUs, estimates the dollar value of each correction, ranks stores by opportunity, lists best and worst performing RMAs, and the most problematic products. Empowered with these rapid insights, manufacturers and their retail partners can integrate shipment and shelf-space data to determine potential root-causes and fixes for the situation and then collaborate to share recommended actions.
The Web-based solution provides instant, secure access to out-of-stock alerts and trend data using a series of flexible custom reports, dashboards, and automated notices. Executive Summary Reports alert management to the most critical out-of-stock problems and project the financial impact of prompt action giving manufacturers the immediate visibility required to improve performance. Corrective Action Reports are provided for store-level issue summary and impact analysis.
For complete information on IRI’s Retail Performance Management Solutions, visit www.infores.com.
About IRI’s Consumer-driven Enterprise Management Software Solutions
IRI’s Consumer-driven Enterprise Management Software Solutions for the Consumer Packaged Goods (CPG) industry provide companies the ability to put the insights they have about their consumers to immediate application in driving key business decisions. These solutions provide a unique framework for all phases of planning, performance analysis, and rapid decision making required to optimize brand management, trade promotion, and sales and operations management.
About Information Resources, Inc.
Information Resources, Inc. (IRI) is the leading global provider of enterprise market information solutions for the CPG, Retail and Healthcare industries. IRI is the first company to leverage the power of real-time market information, advanced analytic insights, and enterprise performance management technology to improve the profitability and operational effectiveness of the world’s leading CPG, retail and healthcare companies. The Company uniquely provides a total view of the market, enabling maximum business performance throughout the enterprise. IRI's solutions make the consumer-driven, real-time enterprise possible. More information is available at www.infores.com.
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