The Sweet Smell of Replenishment Success     

Even for a global CPG giant like fragrance company Coty Inc., success is virtually impossible without strong sales through the Wal-Mart channel. And sales are hard to come by if products are out of stock, or the wrong products are on the shelf.

Seeking to improve daily replenishment and fulfillment results for its Wal-Mart channel in the US, Canada, and Mexico, Coty will deploy the Blue Agave Software Retail Channel Execution application suite. Leveraging the Blue Agave software, Coty will be able to continuously evaluate Wal-Mart Retail Link data on its products' sales performance to better predict demand-driven retail issues such as stock-outs, excess inventory, late orders, and forecast variances.

What should be of particular interest to Coty are the Blue Agave solution's enhanced root cause capabilities that will provide users with immediate insight into replenishment and fulfillment issues. Following rules set by Coty and Wal-Mart, the software will be able to determine whether an issue has an internal supply chain cause, such as low fill rate, or a store-level demand cause, such as incorrect replenishment settings.

Aided by Retail Channel Execution technology, Coty will be able to detect replenishment/fulfillment issues as soon as or even before they happen, and then pinpoint the root cause to allow quick resolution. More accurate replenishment of Coty products on Wal-Mart shelves will increase sales and customer satisfaction, providing substantial benefit for both Coty and Wal-Mart.

According to Paula Rosenblum, Vice President of Research for RSAG, "Real-time management of in-store inventory levels is critical to managing the seemingly intractable dilemma of reducing out-of-stocks while reducing inventory levels at the same time. While mandates may not be the most effective long-term tools to facilitate cooperation across the Extended Retail Industry, Coty should be able to meet both the consumer's and Wal-Mart's needs with a minimum  of pain through the use of this technology."