CAO

Computer Assisted Ordering

Allocation and Replenishment

Our methods increase delivery ability and reduce tied-up capital

I en butikskedja är det viktigt att försäljningspersonalen kan ägna sig åt att sälja. För en bättre effektivitet ska alla logistiska och kritiska funktioner administreras och stödjas från en central administration. För det krävs en kombination av metoder för rätt lagerpåfyllning och allokering av varor, tillbehör och reservdelar.

Allocation and Replenishment for Chain Stores
Computer Assisted Ordering, or CAO, is a common term for stock replenishment and the allocation of goods. CAO represents the greatest opportunity chains have to increase their sales.

Our CAO methods can help you increase your sales by 3-8 % by cutting in half goods shortages in the stores. Moving the responsibility for stock replenishment from the stores to a centrally located replenishment function dramatically reduces the work load for purchasing. The personnel at the stores can now devote their time to sales.

The tool we developed for CAO is called NoGap, and acts as an add-on to existing business systems with automatic replenishment and allocation to the stores. A chain with many stores can use a central function to create cost-effective stock replenishment that ensures that all stores will have the right goods delivered at the right time. Based on sales history, demand forecasts are determined, taking into account seasons and trends, and based on the service level, the required decisions are made as to the stock level of each item by store.

 

The system provides automatic signals for suggested stock replenishment, which are reviewed by a person responsible for replenishment. Each store can have a unique presentation level, and also take into account the constraints of shelf space in setting maximum and minimum stock as a method of guaranteeing the efficient operation of the store. The system also takes into account products with a limited shelf life, such as perishables. This solution creates the foundation for optimizing cost-effective goods flow on all levels, customized for each shop.

The effects of this management should be simulated before the parameters are set. This gives product planners and store management insights on the size of effects on delivery capacity and capital build-up. 

 

NoGap manages the stock balance by store, and creates signals for suggested stock replenishment, which are monitored by a centrally-stationed stock planner. Replenishment proposals are created at store level, and sent to the supplier, which may be either an internal central warehouse or an external supplier.

CAO Computer Assisted Ordering

Is a concept for IT-supported automatic store replenishment and allocation.

Calculates forecast and optimize stock after the level of service is geared toward.

Increases the chain store sales through fewer shortages

 

Dramatically reduces the amount of routine work for replenishment of stock.