Family Express Optimizes Inventory Management With Retalix

Solution reduces order sizes, increases inventory turnover, decreases inventory on hand

VALPARAISO, Ind. -- Family Express Corp. recently improved its inventory management operations significantly by deploying Retalix Ltd.'s Demand-Driven Replenishment solution across its chain of approximately 60 convenience stores in northwestern Indiana.

By using this demand forecasting and inventory replenishment system, Family Express reduced its tobacco order size by 21%, while increasing its average monthly inventory turnover per store by 2.5 turns. The software application has also helped decrease the retailer's average inventory days on hand for tobacco products by 2.4 days.

In addition, the Demand-Driven Replenishment solution has given Family Express the option to automatically re-order a significant percentage of all items in its stores, effectively reducing inventory management labor, thus increasing customer face time.

The convenience retailer is also experiencing a much reduced out-of-stock rate, it said.

"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, said, "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' logistics model consolidates 25 traditional DSD weekly deliveries into a single daily delivery, thereby achieving transportation efficiencies and freshness for perishables.

Retalix is a leading global provider of software and services to high-volume, high-complexity retailers, including supermarkets, c-stores, fuel stations, drugstores and department stores. Its products and services help its customers to manage and optimize their retail operations, differentiate their brand and build consumer loyalty, while providing retailers with the flexibility and scalability to support ongoing business transformation and growth. Retalix offers solutions for point-of-sale (POS), sales channels and in-store management (including mobile and e-commerce), customer management and marketing, merchandising, and logistics. By leveraging a variety of deployment options, including software-as-a-service (SaaS), Retalix serves a large customer base of approximately 70,000 stores across more than 50 countries worldwide. The company is based in Ra'anana, Israel, with North America headquarters in Plano, Texas.

Valparaiso, Ind.-based Family Express features proprietary brands including Java Wave gourmet coffees, Buzzed Energy Drinks, SqueezeFreeze FCB drinks, natural spring water, milk products and ice. Its Cravin's Market brand includes a line of fresh sandwiches and bakery products such as its signature square donuts that are prepared and delivered to the stores daily.