Family Express Optimizes Inventory Management
VALPARAISO, Ind. -- Family Express significantly improved its inventory management operations by deploying Retalix Ltd.'s Demand-Driven Replenishment solution across its convenience stores in northwest Indiana.
By using the demand forecasting and inventory replenishment system, Family Express reduced its tobacco order size by 21 percent, while increasing its average monthly inventory turnover per store by 2.5 turns. The software application also helped decrease the retailer's average inventory days on hand for tobacco products by 2.4 days, according to Dallas-based Retalix.
In addition, Retalix's Demand-Driven Replenishment solution has given Family Express the option to automatically reorder a significant percentage of all items in its stores, effectively reducing inventory management labor and thus, increasing customer face time. The convenience retailer is experiencing a much-reduced out-of-stock rate as well, the announcement noted.
"Retalix and its Demand-Driven Replenishment solution have helped us optimize our inventory management and elevated our operations to a higher, more sophisticated level," said Bill Nolan, vice president of marketing for Family Express. "The sales, turnover and inventory-on-hand improvements that we've witnessed illustrate that the Retalix solution accurately forecasts demand for each store and keeps our inventory at an optimal level, which ultimately impacts our bottom line."
Todd Michaud, president of Retalix USA, added, "Demand-Driven Replenishment is truly changing the game of inventory management. By combining our proprietary science with our 30 years of retail experience, our demand forecasting and inventory replenishment system is proven to help retailers like Family Express efficiently and effectively reduce out-of-stocks, decrease losses from spoiled or damaged goods, and improve their overall inventory position and profitability."
Family Express operates stores throughout northwest and north central Indiana.