SAS combines true profitability and merchandise planning for retailers

The most successful retailers in the world are masters of understanding and managing the costs and profits at each stage of moving products through the distribution system - from post-production to the consumers' shopping carts.

So says Steve G Harris, Sales Development Manager at SAS Institute SA. "Getting products to customers at the lowest possible cost is a crucial challenge for retailers the world over. So, too, is accurate and timely merchandise planning, which can help retailers ensure that they have the right merchandise to meet current needs," Harris continues.

SAS Institute has therefore introduced a new solution for the retail industry that brings further intelligence to the supply chain, ultimately reducing the cost of putting goods on the shelves. Harris says SAS has combined two of its solutions - SAS Value Chain Analytics and Marketmax retail planning software - to provide retailers with a complete view of the retail/demand supply chain, giving them a competitive advantage for external negotiations and internal efficiencies. SAS acquired Marketmax in October 2003.

"Traditionally, analysis at the store level has only taken account of the demand side of the equation; however, challenging economic conditions have made it imperative for retailers to have a complete view of their operations. To compete successfully, retailers must be able to take information provided by space planning software and attach this inventory information to the rest of the supply chain," he says.

Bringing together advanced demand information with under-used supply chain analysis has tended to be disjointed and ad hoc in nature. In fact, in the past, efforts simply failed because the fact-based information could not be provided in a timely manner. "The linking of Marketmax retail optimisation solutions with the total-cost-of-supply information of SAS Value Chain Analytics helps retailers make more profitable demand-driven decisions," Harris explains.

SAS Value Chain Analytics helps retailers and suppliers understand the effects of decisions not only in stores, but also throughout their distribution channels back to post-production.

Using SAS Value Chain Analytics and Marketmax together, retailers can analyse the effect of product/vendor characteristics, policies or procedures on their operations. This visibility and scenario analysis can equip buyers with fact-based information to strengthen negotiation positions with suppliers.

"Not only can this combination help in the development of better product assortment strategies to satisfy customer needs, it can also help retailers become more efficient in supplying those products to their customers," Harris concludes.