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An Ideal Supply Chain TechStack

By
Niki Khokale
September 7, 2022
5
min
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Blog

An Ideal Supply Chain TechStack

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In today’s environment, where governments are bringing in regulations for ease of doing business; the number of D2C, Retail, and Q-Commerce companies that have come up is staggering. While it is easy to set up a business, it is nowhere near as easy to set up a robust supply chain operation. 

Fountain9 works with many such companies and has realized that there is a general misconception about the ideal supply chain tech stack. This tech stack is essential to your day-to-day operations and should be pondered upon very carefully. 

An Ideal supply chain tech stack comprises 3 systems:

  1. POS 
  2. Inventory Management System
  3. Demand & Inventory Planning System

While there is general clarity regarding the role of a Point-Of-Sale (POS) system, there is a general misunderstanding regarding the other two systems. Let's get into more detail about the objective, importance, and differences between the three systems.

POS

A point-of-sale system is what enables your company to carry out transactions and maintain a record of the transactions. The setup can work differently depending on the channels you are selling on, i.e. online, physical stores, or omnichannel. A POS system comprises hardware (a computer connected to a bar code reader, cash drawer, and credit/debit card reader) and software that organizes and stores all of your store information like product catalog, pricing master, promotions master, and billing management. 

A POS system enables better customer experience, in-store inventory management, and promotions management. Also, it provides access to tertiary-level (as close to the customer) data to the central demand planning teams so that they get a more granular view of the demand patterns of each product at a SUK+Store Level.

Inventory Management System

An Inventory Management system is the backbone of the entire supply chain operations. Good inventory management processes are vital to the company’s financial health. Ensuring that there never comes a situation where products are too much or too little to sell. An Inventory Management System is a system that provides ground intelligence regarding the movement of inventory in a company. It tracks inventory from procurement/purchase, replenishment/inter-store transfers, and safety stocks to the sale/return of goods. 

The importance of a good inventory management system cannot be stressed enough, especially for D2C, CPG, and retail brands. Accurate inventory tracking allows brands to fulfill orders timely and accurately, maintain supply chain agility, reduce turnaround time, and optimize working capital.

Demand & Inventory Planning System

If an inventory management platform is the backbone of the supply chain operations, the demand and inventory planning system are the eyes of the same. A Demand and  Inventory Planning system allows demand planners to sense demand at a very granular and real-time level and recommend appropriate inventory levels across the supply chain. Demand Sensing takes Demand forecasting to the next level by considering short-term trends, incorporating baseline data adjusted for external and internal factors to create an ever-evolving real-time demand forecast. 

It is important for CPG, D2C, and Retail brands that deal with perishables, fast-moving, and high-demand SKUs to maintain a balance between accurate demand prediction and stock-outs. Demand Sensing reduces demand latency and includes daily PoS data to gain insights and improve service. It also gives demand planners the capability to right-size their SKUs inventory by incorporating marketing campaign data, and price changes based on price elasticity, seasonality, and weather. 

Kronoscope: Your Ideal Demand & Inventory Planning System

Demand prediction for thousands of SKUs over hundreds of warehouses and stores is a really challenging job, and accurately predicting demand is even more so. Most demand planners scour through hundreds of excel sheets, running into thousands of rows, even with missing data, to manually calculate demand predictions and develop replenishment plans. Kronoscope is an all-capable, AI-powered Demand Sensing and Inventory Planning cloud-based software that can save you from out-of-stock losses and waste, ensuring that you are optimally stocked through all points in your supply chain.

Demand Sensing

Kronoscope allows you to achieve unmatched demand prediction accuracy by incorporating the impact of over nine influencing parameters to develop a baseline prediction that is further enhanced by factor-adjusted predictions and Similarity Adjusted Demand Predictions. Let's have a look at the parameters used by Kronsocope. Baseline predictions deal with SKU, Channel, and Store level demand predictions by factoring in the variables like Sales data, seasonal effects, cycllicity, and outlier corrections. The next level to demand sensing in Kronoscope gives demand planners to predict accurate demand depending on changes in product pricing and promotional offers, weather, seasonality, product similarity, and attributes.

Pricing and Promotions Planning

Kronoscope can calculate price sensitivity at the most granular levels and forecast future demand based on such changes. A price sensitivity curve is established for each SKU, geography combination is used to determine the impact of price change. Based on a company’s wallet share/revenue targets and margin constraints, Kronoscope can calculate and recommend price points to maximize objective function and meet revenue targets. Demand planners can then freeze the calculations and pull the updated demand numbers into the purchase and replenishment planning modules. Moreover, Kronoscope’s AI engine utilizes advanced algorithms to factor in historical events data and future events calendars to find similar types of events and then predict the demand uplift in the event period. Kronoscope undertakes real-time calculations to provide planners with the best possible demand pattern suggestions. Moreover, it gives demand planners the capability to edit and refine plans and, once frozen, generate inventory plans.

Purchase & Replenishment Planning

Kronoscope, with its sophisticated AI engine, helps demand planners by automatically creating purchase plans, and factoring in lead times, fill rates, shelf life, current inventory levels, open orders, and dynamic safety stock levels. Dynamic safety levels are assigned based on demand variability, service levels, plan coverage days, and supplier fill rates. Demand planners have three modes of purchase or replenishment planning in Kronoscope Fixed Duration purchase or replenishment Plan, Fixed Schedule purchase or replenishment Plan, and Dynamic purchase or replenishment Plan. Usually a complex process, kronoscope simplifies purchase planning, where teams can automate purchase operations in just a few clicks, enabling faster procurements.  Moreover, Kronoscope’s supplier scoring mechanism can help procurement teams to choose the best vendor for a particular SKU in a specific region based on their lead time, fill rate, and prices. Thus, giving extra insights while negotiating with the vendors.

‍Sales & Operations Planning 

Kronoscope brings unparalleled intuition and automation to your business. You’ll have a near-seamless operation at your fingertips with your expertise when powered by Kronoscope. Kronoscope also allows seamless collaborations for teams that otherwise would generally function in independent silos. You can now get fast & laser-sharp demand and inventory plans for sales, marketing and operations teams to collaborate and be in perfect synchrony. Kronoscope allows you to maintain adequate service levels by classifying the entire SKU group into ABC classifications. Kronoscope, with its demand sensing and inventory planning capability, allows you to maintain flexibility in safety levels to manage cash flows and working capital. High dynamic safety levels are maintained for high-selling products with high demand variability. It can also help you optimize the working capital and reduce the complexity of managing extensive inventories. It can Identify SKUs ideal for liquidation by proactively monitoring SKUs piling or going out of stock up at any level in the supply chain.

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Blog

An Ideal Supply Chain TechStack

Share this

In today’s environment, where governments are bringing in regulations for ease of doing business; the number of D2C, Retail, and Q-Commerce companies that have come up is staggering. While it is easy to set up a business, it is nowhere near as easy to set up a robust supply chain operation. 

Fountain9 works with many such companies and has realized that there is a general misconception about the ideal supply chain tech stack. This tech stack is essential to your day-to-day operations and should be pondered upon very carefully. 

An Ideal supply chain tech stack comprises 3 systems:

  1. POS 
  2. Inventory Management System
  3. Demand & Inventory Planning System

While there is general clarity regarding the role of a Point-Of-Sale (POS) system, there is a general misunderstanding regarding the other two systems. Let's get into more detail about the objective, importance, and differences between the three systems.

POS

A point-of-sale system is what enables your company to carry out transactions and maintain a record of the transactions. The setup can work differently depending on the channels you are selling on, i.e. online, physical stores, or omnichannel. A POS system comprises hardware (a computer connected to a bar code reader, cash drawer, and credit/debit card reader) and software that organizes and stores all of your store information like product catalog, pricing master, promotions master, and billing management. 

A POS system enables better customer experience, in-store inventory management, and promotions management. Also, it provides access to tertiary-level (as close to the customer) data to the central demand planning teams so that they get a more granular view of the demand patterns of each product at a SUK+Store Level.

Inventory Management System

An Inventory Management system is the backbone of the entire supply chain operations. Good inventory management processes are vital to the company’s financial health. Ensuring that there never comes a situation where products are too much or too little to sell. An Inventory Management System is a system that provides ground intelligence regarding the movement of inventory in a company. It tracks inventory from procurement/purchase, replenishment/inter-store transfers, and safety stocks to the sale/return of goods. 

The importance of a good inventory management system cannot be stressed enough, especially for D2C, CPG, and retail brands. Accurate inventory tracking allows brands to fulfill orders timely and accurately, maintain supply chain agility, reduce turnaround time, and optimize working capital.

Demand & Inventory Planning System

If an inventory management platform is the backbone of the supply chain operations, the demand and inventory planning system are the eyes of the same. A Demand and  Inventory Planning system allows demand planners to sense demand at a very granular and real-time level and recommend appropriate inventory levels across the supply chain. Demand Sensing takes Demand forecasting to the next level by considering short-term trends, incorporating baseline data adjusted for external and internal factors to create an ever-evolving real-time demand forecast. 

It is important for CPG, D2C, and Retail brands that deal with perishables, fast-moving, and high-demand SKUs to maintain a balance between accurate demand prediction and stock-outs. Demand Sensing reduces demand latency and includes daily PoS data to gain insights and improve service. It also gives demand planners the capability to right-size their SKUs inventory by incorporating marketing campaign data, and price changes based on price elasticity, seasonality, and weather. 

Kronoscope: Your Ideal Demand & Inventory Planning System

Demand prediction for thousands of SKUs over hundreds of warehouses and stores is a really challenging job, and accurately predicting demand is even more so. Most demand planners scour through hundreds of excel sheets, running into thousands of rows, even with missing data, to manually calculate demand predictions and develop replenishment plans. Kronoscope is an all-capable, AI-powered Demand Sensing and Inventory Planning cloud-based software that can save you from out-of-stock losses and waste, ensuring that you are optimally stocked through all points in your supply chain.

Demand Sensing

Kronoscope allows you to achieve unmatched demand prediction accuracy by incorporating the impact of over nine influencing parameters to develop a baseline prediction that is further enhanced by factor-adjusted predictions and Similarity Adjusted Demand Predictions. Let's have a look at the parameters used by Kronsocope. Baseline predictions deal with SKU, Channel, and Store level demand predictions by factoring in the variables like Sales data, seasonal effects, cycllicity, and outlier corrections. The next level to demand sensing in Kronoscope gives demand planners to predict accurate demand depending on changes in product pricing and promotional offers, weather, seasonality, product similarity, and attributes.

Pricing and Promotions Planning

Kronoscope can calculate price sensitivity at the most granular levels and forecast future demand based on such changes. A price sensitivity curve is established for each SKU, geography combination is used to determine the impact of price change. Based on a company’s wallet share/revenue targets and margin constraints, Kronoscope can calculate and recommend price points to maximize objective function and meet revenue targets. Demand planners can then freeze the calculations and pull the updated demand numbers into the purchase and replenishment planning modules. Moreover, Kronoscope’s AI engine utilizes advanced algorithms to factor in historical events data and future events calendars to find similar types of events and then predict the demand uplift in the event period. Kronoscope undertakes real-time calculations to provide planners with the best possible demand pattern suggestions. Moreover, it gives demand planners the capability to edit and refine plans and, once frozen, generate inventory plans.

Purchase & Replenishment Planning

Kronoscope, with its sophisticated AI engine, helps demand planners by automatically creating purchase plans, and factoring in lead times, fill rates, shelf life, current inventory levels, open orders, and dynamic safety stock levels. Dynamic safety levels are assigned based on demand variability, service levels, plan coverage days, and supplier fill rates. Demand planners have three modes of purchase or replenishment planning in Kronoscope Fixed Duration purchase or replenishment Plan, Fixed Schedule purchase or replenishment Plan, and Dynamic purchase or replenishment Plan. Usually a complex process, kronoscope simplifies purchase planning, where teams can automate purchase operations in just a few clicks, enabling faster procurements.  Moreover, Kronoscope’s supplier scoring mechanism can help procurement teams to choose the best vendor for a particular SKU in a specific region based on their lead time, fill rate, and prices. Thus, giving extra insights while negotiating with the vendors.

‍Sales & Operations Planning 

Kronoscope brings unparalleled intuition and automation to your business. You’ll have a near-seamless operation at your fingertips with your expertise when powered by Kronoscope. Kronoscope also allows seamless collaborations for teams that otherwise would generally function in independent silos. You can now get fast & laser-sharp demand and inventory plans for sales, marketing and operations teams to collaborate and be in perfect synchrony. Kronoscope allows you to maintain adequate service levels by classifying the entire SKU group into ABC classifications. Kronoscope, with its demand sensing and inventory planning capability, allows you to maintain flexibility in safety levels to manage cash flows and working capital. High dynamic safety levels are maintained for high-selling products with high demand variability. It can also help you optimize the working capital and reduce the complexity of managing extensive inventories. It can Identify SKUs ideal for liquidation by proactively monitoring SKUs piling or going out of stock up at any level in the supply chain.

Access the

Blog

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

In today’s environment, where governments are bringing in regulations for ease of doing business; the number of D2C, Retail, and Q-Commerce companies that have come up is staggering. While it is easy to set up a business, it is nowhere near as easy to set up a robust supply chain operation. 

Fountain9 works with many such companies and has realized that there is a general misconception about the ideal supply chain tech stack. This tech stack is essential to your day-to-day operations and should be pondered upon very carefully. 

An Ideal supply chain tech stack comprises 3 systems:

  1. POS 
  2. Inventory Management System
  3. Demand & Inventory Planning System

While there is general clarity regarding the role of a Point-Of-Sale (POS) system, there is a general misunderstanding regarding the other two systems. Let's get into more detail about the objective, importance, and differences between the three systems.

POS

A point-of-sale system is what enables your company to carry out transactions and maintain a record of the transactions. The setup can work differently depending on the channels you are selling on, i.e. online, physical stores, or omnichannel. A POS system comprises hardware (a computer connected to a bar code reader, cash drawer, and credit/debit card reader) and software that organizes and stores all of your store information like product catalog, pricing master, promotions master, and billing management. 

A POS system enables better customer experience, in-store inventory management, and promotions management. Also, it provides access to tertiary-level (as close to the customer) data to the central demand planning teams so that they get a more granular view of the demand patterns of each product at a SUK+Store Level.

Inventory Management System

An Inventory Management system is the backbone of the entire supply chain operations. Good inventory management processes are vital to the company’s financial health. Ensuring that there never comes a situation where products are too much or too little to sell. An Inventory Management System is a system that provides ground intelligence regarding the movement of inventory in a company. It tracks inventory from procurement/purchase, replenishment/inter-store transfers, and safety stocks to the sale/return of goods. 

The importance of a good inventory management system cannot be stressed enough, especially for D2C, CPG, and retail brands. Accurate inventory tracking allows brands to fulfill orders timely and accurately, maintain supply chain agility, reduce turnaround time, and optimize working capital.

Demand & Inventory Planning System

If an inventory management platform is the backbone of the supply chain operations, the demand and inventory planning system are the eyes of the same. A Demand and  Inventory Planning system allows demand planners to sense demand at a very granular and real-time level and recommend appropriate inventory levels across the supply chain. Demand Sensing takes Demand forecasting to the next level by considering short-term trends, incorporating baseline data adjusted for external and internal factors to create an ever-evolving real-time demand forecast. 

It is important for CPG, D2C, and Retail brands that deal with perishables, fast-moving, and high-demand SKUs to maintain a balance between accurate demand prediction and stock-outs. Demand Sensing reduces demand latency and includes daily PoS data to gain insights and improve service. It also gives demand planners the capability to right-size their SKUs inventory by incorporating marketing campaign data, and price changes based on price elasticity, seasonality, and weather. 

Kronoscope: Your Ideal Demand & Inventory Planning System

Demand prediction for thousands of SKUs over hundreds of warehouses and stores is a really challenging job, and accurately predicting demand is even more so. Most demand planners scour through hundreds of excel sheets, running into thousands of rows, even with missing data, to manually calculate demand predictions and develop replenishment plans. Kronoscope is an all-capable, AI-powered Demand Sensing and Inventory Planning cloud-based software that can save you from out-of-stock losses and waste, ensuring that you are optimally stocked through all points in your supply chain.

Demand Sensing

Kronoscope allows you to achieve unmatched demand prediction accuracy by incorporating the impact of over nine influencing parameters to develop a baseline prediction that is further enhanced by factor-adjusted predictions and Similarity Adjusted Demand Predictions. Let's have a look at the parameters used by Kronsocope. Baseline predictions deal with SKU, Channel, and Store level demand predictions by factoring in the variables like Sales data, seasonal effects, cycllicity, and outlier corrections. The next level to demand sensing in Kronoscope gives demand planners to predict accurate demand depending on changes in product pricing and promotional offers, weather, seasonality, product similarity, and attributes.

Pricing and Promotions Planning

Kronoscope can calculate price sensitivity at the most granular levels and forecast future demand based on such changes. A price sensitivity curve is established for each SKU, geography combination is used to determine the impact of price change. Based on a company’s wallet share/revenue targets and margin constraints, Kronoscope can calculate and recommend price points to maximize objective function and meet revenue targets. Demand planners can then freeze the calculations and pull the updated demand numbers into the purchase and replenishment planning modules. Moreover, Kronoscope’s AI engine utilizes advanced algorithms to factor in historical events data and future events calendars to find similar types of events and then predict the demand uplift in the event period. Kronoscope undertakes real-time calculations to provide planners with the best possible demand pattern suggestions. Moreover, it gives demand planners the capability to edit and refine plans and, once frozen, generate inventory plans.

Purchase & Replenishment Planning

Kronoscope, with its sophisticated AI engine, helps demand planners by automatically creating purchase plans, and factoring in lead times, fill rates, shelf life, current inventory levels, open orders, and dynamic safety stock levels. Dynamic safety levels are assigned based on demand variability, service levels, plan coverage days, and supplier fill rates. Demand planners have three modes of purchase or replenishment planning in Kronoscope Fixed Duration purchase or replenishment Plan, Fixed Schedule purchase or replenishment Plan, and Dynamic purchase or replenishment Plan. Usually a complex process, kronoscope simplifies purchase planning, where teams can automate purchase operations in just a few clicks, enabling faster procurements.  Moreover, Kronoscope’s supplier scoring mechanism can help procurement teams to choose the best vendor for a particular SKU in a specific region based on their lead time, fill rate, and prices. Thus, giving extra insights while negotiating with the vendors.

‍Sales & Operations Planning 

Kronoscope brings unparalleled intuition and automation to your business. You’ll have a near-seamless operation at your fingertips with your expertise when powered by Kronoscope. Kronoscope also allows seamless collaborations for teams that otherwise would generally function in independent silos. You can now get fast & laser-sharp demand and inventory plans for sales, marketing and operations teams to collaborate and be in perfect synchrony. Kronoscope allows you to maintain adequate service levels by classifying the entire SKU group into ABC classifications. Kronoscope, with its demand sensing and inventory planning capability, allows you to maintain flexibility in safety levels to manage cash flows and working capital. High dynamic safety levels are maintained for high-selling products with high demand variability. It can also help you optimize the working capital and reduce the complexity of managing extensive inventories. It can Identify SKUs ideal for liquidation by proactively monitoring SKUs piling or going out of stock up at any level in the supply chain.

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