Footstar chooses 4R Systems to optimize case-packs to allow maximum flexibility in replenishment
25 May '05
3 min read
leading provider of software tools, analytical models and information services that help retailers and manufacturers significantly increase profits by optimizing their inventory and related supply chain decisions 4r systems, inc announced that footstar, inc, a leading discount footwear retailer, has engaged 4r to help them achieve the appropriate choice of case-pack design and quantities that provide the maximum flexibility in meeting store-level demand.
"to drive cost efficient replenishment, our products are shipped in case-packs, which are assortments of preset sizes in one package. having the right case-pack configurations and quantities are crucial to our ensuring that they efficiently meet consumer demand without overstocking the store with excess products in the wrong size," stated stuart e. werner, cio, of footstar.
"with the help of 4r, they are addressing pre-pack optimization more intelligently, enabling us to better match supply with demand in each store, giving our customers the right products in the correct size when they want them."
case-packs provide retailers with significant reductions in handling and delivery costs, but if they contain product that is not needed in a particular store, often generate costs associated with stranded, excess inventory.
having the appropriate case-packs combinations and quantities at the warehouse determines how well demand can be supplied in high demand sizes while, at the same time, avoiding excess inventory in low demand sizes.