CINCINNATI -- United Dairy Farmers (UDF), convenience store/gasoline retailer and maker of Homemade brand ice cream, is implementing Retalix DemandAnalytX, a data cleansing, demand forecasting and order optimization application, at its 190 c-stores in the Midwest.
With multiple items in a variety of traditional c-store categories, such as cigarettes and candy bars, in addition to its premium ice cream, UDF wanted a tool that would increase operational efficiency by reducing inventory levels, out-of-stocks, shrinkage and spoilage. UDF chose Retalix DemandAnalytX ([image-nocss] DAX), the companies said, because its retail-based algorithms address the operational challenges of c-store and retail environments.
As a convenience store chain, we need to provide an optimum customer experience for every customer, which means we must have all products on the shelf, all the time, said Dan Burke, vice president of operations for Cincinnati-based UDF. Retalix DemandAnalytX will help us perfect the customer experience and improve our revenues at the same time. Based on our experience with computer assisted ordering, we expect Retalix DemandAnalytX to decrease our inventory levels by as much as 15% and halve our out-of-stocks and spoilage.
Victor Hamilton, president and CEO of Retalix USA, Dallas, said, Not only can Retalix DemandAnalytX help UDF manage its inventory levels and streamline its ordering process, but it can also help UDF create a positive experience for every customer by ensuring product availability, which is especially key in the c-store environment.
DAX is a demand forecasting and computer-generated ordering tool specifically designed for the needs of retail, grocery and c-store chains. The software is built on three algorithmsdata logic, demand logic and order optimizationthat remove anomalies from the ordering process and create accurate ordering forecasts. Retailers using Retalix DemandAnalytX reduce their inventory levels by 10% to 18%, their out-of-stock occurrences by 20% to 55% and their spoilage or shrinkage by 20% to 40% and experience a sales lift of .5% to 1.5%, the company said.
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