A recent study by Roland Berger Strategy Consultants found that mean absolute percentage error measured monthly was
a whooping 44% on a shipping location level. Yet, it is the stores where retailers generate most of their sales revenue.

Over-stocks and out-of-stocks cause financials set backs
for most retailers.

A 500 million dollar retailer can expect to lose 20 to 25 million
in sales revenue due to out-of-stocks. Some organizations lose
as much as 7-10% of all sales due to poor customer service levels.

Over-stocks are just as damaging. A 500 million dollar retailer could invest up to 27 million dollars in inventory that is not moving well. Inventory overruns have a direct impact on a company’s financial performance.

Gross Margin Return on Investment inventory = Net Sales/Cost
of Inventory.

A 5% increase in sales combined with a 20% decrease
in inventory cost will boost the bottom line by 31%.

It is very difficult to pinpoint the factors contributing to over-stocks and out-of-stocks. Retalon and IBM teamed up to offer retailers
an assessment of their supply chain performance.

The free-of-charge assessment uses point-of-sale data to produce a comprehensive report, detailing the ways to avoid over-stocks and out-of-stocks in the future. A retailer can choose to perform
the assessment for any business entity, such as store/SKU, product category, department, store or store cluster, or even
a vendor.

Discover hidden potential in your own organization. Get expert recommendations for greater return on investment in inventory.

To take advantage of this offer contact us by filling out the
request form or call Toll Free 1-888-837-0268.

About Retalon Inc.

RETALON Inc. is a fast growing privately owned company.

The key to the RETALON success is a new generation of analytic tools for the most challenging segments of supply chain
and retailing. Extensive scientific research makes the foundation
for RETALON solutions.

RETALON common analytic platform FORETUNE produces very accurate store/SKU consumer future demand projections, as well as national level forecasts, delivering a single true set of numbers for all participants of supply chain. The platform serves as a base for RETALON modular systems for optimization of allocation
and replenishment, promotional events, operational planning, price management, inter-store merchandise transfers, optimal vendor purchase quantities, and many others. On average, Retalon solutions increase sales revenue by 2.5% and improve overall Gross Margin by 8%.