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Hi there,

Hope you are enjoying your Memorial Day Weekend!

Welcome to the May edition of our newsletter.

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Turning data into knowledge

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Over the past decade, there has been an exponential growth in data availability - from Point of Sale (POS), and inventory, to social media trends.

Given the large number of stock-keeping units (SKUs) spread across multiple locations within a supply network, this data presents a golden opportunity for consumer brands who sell through retail channels.

Let's take a demand forecast as an example.

Typically, consumer demand forecasts are based on historical data (shipments from distribution centers, etc.), rather than actual consumer demand in the retail store.

As a result, large disconnects between true demand and available supply can occur.

The annual cost of stockouts and overstocks in the retail supply chain?

$1 trillion dollars.

And for quite some time, collaboration in planning and decision-making has been a barrier for consumer brands and retailers.

Nevertheless, today, the synchronization of Retail-SKU data, with the brands’ own supply chain data, is turning the tables on collaboration as we know it.

With this approach, consumer brands can see more consistent demand patterns, allowing them to adjust their forecast in real time - what industry expert Mike Doherty calls Flowcasting.

Decisions made from store-level data allow brands to collaborate with retail buyers on when inventory needs to be replenished - and even the effects of how certain products are placed on the store shelf.

Meeting the stockout challenge is more delicate and intricate than it might seem on the face of it.

But, with collaboration, powered by data, brands, and retailers can build a solid foundation for what we believe is a “shelf-connected” supply chain.

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bops Monthly Round-Up: May 2023

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From Orlando to Mexico City, the bops team was on the road in the month of May, stopping by Gartner's Supply Chain Symposium and Logistics World.

A common theme - and key learning - across our conversations at these conferences was the heightened expectations that retailers have for consumer brands today.

Given how important Walmart is as a customer for brands, we put together a quick and helpful resource for how brands can make the partnership a success.

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Check it out here!

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bops Consumer Reads: Ketchup and AI

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Kraft Heinz reportedly added $30 million to its sales by applying artificial intelligence (AI) to its supply chain visibility functions, according to a recent investor presentation.  

CEO Miguel Patricio told analysts on a call last week that “we are improving our planning, our service levels, reducing waste, reducing times.”

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Read the entire article here.

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Who's hiring for their supply chain team?

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Like what you read in this newsletter? Don’t forget to share it with your friends so they can stay up-to-date with the latest trends and resources from the world of consumer goods.

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Till next month,

bops team

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