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White Paper

Minimum Presentation Reduction: Inventory Optimization in the Retail Sector

 

Space planning is vital to the success of any retail store. Thus, it is important that retailers use innovative techniques to present their assortment.

 

We, at TCS, have developed an efficient technique, on the basis of scientific approach and practical experience, to reduce the presentation quantity levels to minimum, resulting in decreased costs, increased margins and increased total sales.

Minimum Presentation Reduction is an inventory optimization technique that allows retailers to realize substantial reduction in the presentation quantities of SKUs by optimizing the Planogram Quantity per Facing (PQPFs) defined for them in their associated planograms. With this inventory optimization technique, retailers can reduce inventory costs and increase margins and total sales.

In this white paper, we take an in-depth look at minimum presentation reduction.

First, we explore the benefits of minimum presentation reduction to improve the returns on inventory investment for retailers.

Second, we highlight the typical life cycle of a successful minimum presentation reduction initiative, which takes place in four stages:

  • Inception
  • Planning
  • Execution
  • Realization

Third, we will discuss other inventory levers that could be used to carry out successful inventory management initiatives.

We finally conclude with TCS’ value proposition in pursuing a minimum presentation reduction project, noting that TCS has helped clients realize as much as 25% reduction in overall inventory and helped them achieve up to $80M of savings with an additional proposed business case of $100M. Based on TCS’ extensive experience with leading retailers, it provides end-to-end solutions in the following areas:

  • Inventory Workbench
  • Supply Chain Solutions
  • Application Development and Integration
  • Business Process and Change Management
  • Retail Transformation