WO2021024205A1

WO2021024205A1 - Method and system of optimizing stock availability and sales opportunity

Info

Publication number: WO2021024205A1
Application number: PCT/IB2020/057408
Authority: WO
Inventors: Philippus Johannes BOSMAN; Franita BOSMAN
Original assignee: Bosman Philippus Johannes
Priority date: 2019-08-06
Filing date: 2020-08-05
Publication date: 2021-02-11
Also published as: ZA202202568B

Abstract

A method and system of optimizing stock availability and sales opportunity of a trader which includes defining key performance areas of stock availability indicators and influencers, defining target stock influencer and indicator values, retrieving raw sales and stock data, converting the data, calculating a sales opportunity by comparing actual stock influencer values with the target stock influencer values, defining a model performance, calculating an actual performance of the trader, and comparing the actual performance to the model performance, and in the event of underperformance, reporting to the trader, an adjustment of values to achieve the model performance in order to increase a rate of sale and improve the sales opportunity thereby providing the trader with an optimal stock replenishment number.

Description

Method and System of Optimizing Stock Availability and Sales Opportunity

This invention relates to a method of optimizing stock availability and sales opportunity, and a stock availability and sales opportunity system.

The invention is expected to be advantageously applicable to optimizing sales opportunity by optimizing stock availability at points of sale and points of distribution in the trading industry, for example the retailer industry. Accordingly, such applications should particularly, but not exclusively, be borne in mind when considering this specification.

In this specification, the term “trader” should be broadly interpreted to include retailers, wholesalers, distributors, online sellers, and vendors. Likewise, the term “trader database” should be broadly interpreted to include a retailer database, a wholesaler database, a distributor database, an online seller database and a vendor database.

Summary of the invention:

According to a first aspect of the invention there is provided a method of optimizing stock availability and sales opportunity, the method being conducted at a stock availability and sales opportunity system, and comprising the steps of: defining a sales period; defining a key performance area of stock availability indicators; defining a key performance area of stock availability influencers that influence the stock availability indicators; defining target stock influencers values; defining target stock indicator values; retrieving raw sales and stock data from a trader database for the sales period; storing the raw sales and stock data at a server of the system having installed thereon a server-side database; converting the raw sales and stock data into structured actual stock influencer values and actual stock indicator values by capturing the raw sales and stock data into a data warehouse having a database table structure that corresponds to the one or more key performance areas; calculating a sales opportunity (unrealized sales) by comparing the actual stock influencer values with the target stock influencer values; calculating an actual performance by comparing the actual stock influencer values with the actual stock indicator values; defining a model performance of the impact of the stock availability influencers on the stock availability indicators; and comparing the actual performance to the model performance, and in the event of underperformance, reporting to the trader, via a trader terminal having a client-side software application installed thereon, an adjustment of the actual stock influencer values to achieve the model performance in order to increase realized sales (rate of sale) and improve the sales opportunity (unrealized sales) for a following sales period, thereby providing the trader with an optimal stock replenishment number.

The stock availability indicators may include any one or more of: a sales volume indicator; a sales value indicator; a rate-of-sale indicator; an out-of-stock indicator; a stock availability indicator; and sales opportunity.

The stock availability influencers may include any one or more of: a master data influencer, a pricing influencer, a ranging influencer, a rate of sale influencer, a replenishment parameter influencer, a normal versus promotion influencer, a source of supply influencer, a planogram influencer, a minimum display stock influencer, a forecast influencer, an order frequency influencer, an order lead time influencer, an order grid influencer, an order grid compliance influencer, a corporate trader, franchise trader, and independent trader order compliance influencer, a strike rate influencer, a working capital influencer, a day’s cover influencer, a returns/waste stock influencer, a safety stock influencer, an overstock influencer, a dormant stock influencer, a deranged stock influencer, a delisted stock influencer, an excess stock influencer, an exit stock influencer, a negative stock influencer, a ghost stock influencer, and a stock count influencer.

The stock availability influences may be categorized for any one or more of normal sales and promotional sales, in one or more bundles of: account maintenance or so-called “hygiene” influencers; supply and demand influencers; and stock level influencers.

The data warehouse may include an Online Analytical Processing Application (OLAP) installed thereon for converting the raw sales and stock data into the structured actual stock influencer values and actual stock indicator values.

Reporting of the adjustment to the trader terminal may include receiving, at the server, a query from the trader via the client-side software application installed on the trader terminal. The query may include an on-line analytical processing application (OLAP) query.

The method may include generating a report at any of the server and the client- side software application of the system and transmitting the report to the trader by manual or electronic transmission, for example by email or via the client-side software application. The report may be generated on any one or more of the following levels: a national and regional level; a corporate, franchise and independent trader level; a store format and store level; a product category and brand level; and a product and article level.

Generating of the report may include generating any one or more of: a detail report; a dashboard chart; a multi-dimensional view, for example a consolidated or rolled-up multi-dimensional view; a sales opportunity report corresponding to the key performance areas, and a sales opportunity calculator report. Generating of the report may include expressing content of the report in a readily perceivable format, for example as percentages of values. The report may include one or more signals to the trader, including but not limited to: a high-alert signal; a warning signal; a positive signal and the like.

Reporting to the trader may include monitoring of the adjustment and signals, and based on the monitoring, suggesting to the trader an action for adjusting of the actual stock influencer values to achieve the model performance.

Reporting to the trader may include determining and prioritizing at least one root cause of actual and anticipated performance in the key performance areas. Reporting to the trader may include generating a key performance indicator- focused plan for a pre-emptive or corrective action for pre-empting and correcting the at least one root cause. To this end, the plan may be focused on action at any one or more of: an operational level; a middle management level; and a middle to top management level.

The trader terminal may include any one or more of: a mobile device and a desktop computer. The client-side software application installed on the trader terminal may include any one or more of: a mobile device software application; a desktop computer software application; a browser application; and a web-based application.

Conveniently, the server may be hosted remotely in a cloud-based environment.

Advantageously, the method may include the expediting and tracking of the pre-emptive and corrective action for optimizing Point-of-Sale (POS) stock availability and sales opportunity. According to another aspect of the invention, there is provided a stock availability and sales opportunity system comprising: a server having installed thereon a server-side database and data warehouse, the server being in communication with a trader database, the server being operable to: define a sales period; define a key performance area of stock availability indicators; define a key performance area of stock availability influencers that influence the stock availability indicators; define target stock influencers values; defining target stock indicator values; retrieve raw sales and stock data from the trader database for the sales period; store the raw sales and stock data at the server of the system having installed thereon a server-side database; convert the raw sales and stock data into structured actual stock influencer values and actual stock indicator values by capturing the raw sales and stock data into a data warehouse having a database table structure that corresponds to the one or more key performance areas; calculate a sales opportunity (unrealized sales) by comparing the actual stock influencer values with the target stock influencer values; calculate an actual performance by comparing the actual stock influencer values with the actual stock indicator values; define a model performance of the impact of the stock availability influencers on the stock availability indicators; and compare the actual performance to the model performance, and in the event of underperformance, reporting to the trader, an adjustment of the actual stock influencer values to achieve the model performance.

The system may include a trader terminal having a client-side software application installed thereon and in communication with the server.

The invention extends to a computer program product for optimizing stock availability and sales opportunity, the computer program product comprising a non- transitory computer-readable medium having stored computer-readable program code, the computer-readable program code executable by processing circuit to perform the steps in the method of optimizing stock availability and sales opportunity as hereinbefore described.

The invention is now described, by way of non-limiting example, with reference to the accompanying diagrammatic drawings.

Drawings

In the drawings,

Figure 1 illustrates, schematically, a stock availability and sales opportunity system in accordance with one aspect of the invention.

Figures 2A, 2B and 2C illustrate, diagrammatically, a method of optimizing stock availability and sales opportunity in accordance with another aspect of the invention, the method being conducted at the system of figure 1.

Figure 3 shows an example of a client-side software application of the trader terminal dashboard according to one embodiment of the invention.

Figure 4 shows an example of a multi-dimensional consolidated view at the client-side software application of the trader terminal dashboard according to another embodiment of the invention; and

Figure 5 shows an example of a multi-dimensional dashboard chart at the client-side software application of the trader terminal according to yet another embodiment of the invention.

Detailed Description of the Invention

With reference to figure 1, reference numeral (1) denotes generally a stock availability and sales opportunity system for conducting a method of optimizing stock availability and sales opportunity according to one aspect of the invention.

In this embodiment, the system (1) includes a server (20) having installed thereon a server-side database (21) and a data warehouse (22), the server (20) being in data communication with a trader database (31 ) connected to a trader Point-of-Sale (POS) device (32) to one side, and a trader terminal (26) in the form of a desktop computer of a trader to another side and having installed thereon a client-side software application in the form of a web-based application. Conveniently, the server (20) is hosted remotely in a cloud-based environment.

The server (20) has installed thereon a computer program product (24) for optimizing stock availability and sales opportunity, the computer program product (24) having stored computer-readable program code, the computer-readable program code being operatively executable to perform the steps in a method of optimizing stock availability and sales opportunity as will become more apparent with reference to figure 2.

In use, the server (20) is operable to: retrieve, at (30), raw sales and stock data for a sales period from the trader database (31) being connected to and populated by the trader Point-of-Sale (POS) terminal (32) by intermediately capturing the raw sales and stock data to a spreadsheet template (29); store the raw sales and stock data at the server-side database (21 ) of the server

(20); convert the raw sales and stock data into structured actual stock influencer values and actual stock indicator values by capturing the raw sales and stock data into the data warehouse (22) having a database table structure which corresponds to previously defined key performance areas of stock availability influencers and stock availability indicators; calculate a sales opportunity (or so-called unrealized sales) by comparing the actual stock influencer values with pre-defined target stock influencer values; calculate an actual performance by comparing the actual stock influencer values with the actual stock indicator values; define a model performance of the impact of the stock availability influencers on the stock availability indicators; and compare the actual performance to the model performance, and in the event of underperformance, report to the trader, via the trader terminal (26) an adjustment of the actual stock influencer values to achieve the model performance in order to increase realized sales (rate of sale) and improve the sales opportunity (unrealized sales) for a following sales period, thereby providing the trader with an optimal stock replenishment number.

To this end, the data warehouse (22) includes an Online Analytical Processing Application (OLAP) installed thereon for facilitating the conversion of the raw sales and stock data into the database table structure which corresponds to the previously defined key performance areas of stock availability influencers and stock availability indicators.

In use and upon reporting to the trader, the server (20) is operable to generate a number of reports including: a detail report; a sales opportunity report (25); and a sales opportunity calculator report (28) and transmit the reports to the trader electronically via email or via the client-side software application installed on the user terminal (26).

Further in use and upon reporting of the adjustment to the trader via the trader terminal (26), the server is operable to receive a query from the trader terminal (26) via the client-side software application installed on the terminal (26) in the form of an Online Analytical Processing (OLAP) query, and in response to the query, generate a multi-dimensional dashboard chart and a multi-dimensional consolidated or rolled-up view (27) at the trader terminal (26).

With reference to figures 2A through 2C, reference numeral (100) denotes, generally, a method of optimizing stock availability and sales opportunity, the method being conducted at the system (1) of figure 1, in accordance with another aspect of the invention.

The method begins, prior to step (101), by: defining a sales period; defining a key performance area of stock availability indicators as can be seen at step (107); defining a key performance area of stock availability influencers that influence the stock availability indicators as can be seen at step (107); defining target stock influencers values; and defining target stock indicator values.

At step (101) a spreadsheet template (29) is created for capturing the raw/unstructured sales and stock data from the trader database (31) in the key performance areas of step (107).

At step (102), an Online Analytical Processing Application (OLAP) is built for converting the raw sales and stock data into structured actual stock influencer values and actual stock indicator values by capturing the raw sales and stock data into a data warehouse having a database table structure that corresponds to the one or more key performance areas.

Next at step (103), the raw sales and stock data is retrieved or extracted from the trader database (31 ) for the sales period and stored at the server (20) of the system (1) having installed thereon the server-side database (21) and transferred to the OLAP warehouse (22), followed by step (104) wherein the raw sales and stock data is organized in the warehouse (22) according to the database table structures that correspond to the key performance areas, i.e. the stock availability indicators and stock availability influencers of figure 2B.

At step (105), a set of computer-readable executable instructions is compiled for the operative retrieval of the organized data from the warehouse (22), and at step (106) the instructions are executed in order to find, analyse and retrieve the organized data from the warehouse (22) according to the table structures that correspond to the key performance areas, i.e. the stock availability indicators and stock availability influencers.

At step (107) of figure 2B, a performance/impact of the stock availability influencers on the stock availability indicators and sales opportunity is shown schematically. Turning to figure 2C, at step (108), a sales opportunity (unrealized sales) is calculated by comparing the actual stock influencer values with the target stock influencer values; an actual performance is calculated by comparing the actual stock influencer values with the actual stock indicator values; and a model performance is defined for the impact of the stock availability influencers on the stock availability indicators, followed at step (109) by the reporting to the user by expressing the results of the impact/performance in any one or more of: a readily perceivable format, for example a percentage; and readily perceivable signals of “High Alert”, “Warning” and “Positive”. Conveniently, the reporting includes monitoring of the readily perceived signals and suggesting, to the user, action for the adjustment of the stock availability influencer actual values towards the stock availability influencer target values.

Next at step (110) the actual performance is compared to the model performance, and in the event of underperformance, reporting to the trader, via the trader terminal (26), an adjustment of the actual stock influencer values to achieve the model performance in order to increase realized sales (rate of sale) and improve the sales opportunity (unrealized sales) for a following sales period, thereby providing the trader with an optimal stock replenishment number.

Table 1 shows an example of the sales opportunity report (25).

Table 2 shows an example of the sales opportunity calculator report (28).

Table 3 shows an example of the detail report.

Advantageously, the sales opportunity report (25) of table 1, the sales opportunity calculator report (28) of table 2, the detail report of table 3, the multi dimensional dashboard chart, and the multi-dimensional consolidated or rolled-up view (27) are generated at any one or more of: national and regional level; corporate and franchise and independent trader level; store format and store level; product category and brand level; and product and article level, as per step (111).

Table 2: Sales Opportunity Calculator Report (28)

Next, at step (112), the reporting to the user includes determining and prioritizing a root cause of actual and anticipated performance in the key performance areas, followed by generating a key performance indicator/influencer focused plan for any one or more of pre-emptive and corrective action for pre-empting and correcting the at least one root cause at step (113). To this end, the plan may be focused on action at any one or more of: an operational level; a middle management level; and a middle to top management level.

At step (114), the pre-emptive and corrective action is tracked and expedited in order to optimize point-of-sale stock availability and optimize sales opportunity.

Finally, step (115) shows the maximizing of the rate of sale and step (116) shows the determining of a stock replenishment value.

Turning to figure 3, reference numeral (300) denotes an example screenshot of the client-side software application of the trader terminal (26) dashboard according to one embodiment of the invention for illustrative purposes.

In figure 4, reference numeral (400) denotes an example of the multi-dimensional consolidated view (27) for illustrative purposes.

In figure 5, reference numeral (500) denotes, generally, an example of a multi dimensional dashboard chart for illustrative purposes.

Advantageously, the method as hereinbefore described combines stock availability indicators and influencer classes to inform an order value against which stock and sales are measured to indicate a degree of out-of-stock, stock availability and rate of sale that may be improved by pre-emptive and corrective action to optimize stock availability and sales opportunity.

Claims

Claims:

1. A method of optimizing stock availability and sales opportunity, the method being conducted at a stock availability and sales opportunity system, and comprising the steps of: defining a sales period; defining a key performance area of stock availability indicators; defining a key performance area of stock availability influencers that influence the stock availability indicators; defining target stock influencer values; defining target stock indicator values; retrieving raw sales and stock data from a trader database for the sales period; storing the raw sales and stock data at a server of the system having installed thereon a server-side database; converting the raw sales and stock data into structured actual stock influencer values and actual stock indicator values by capturing the raw sales and stock data into a data warehouse having a database table structure that corresponds to the one or more key performance areas; calculating a sales opportunity (or so-called unrealized sales) by comparing the actual stock influencer values with the target stock influencer values; calculating an actual performance by comparing the actual stock influencer values with the actual stock indicator values; defining a model performance of the impact of the stock availability influencers on the stock availability indicators; and comparing the actual performance to the model performance, and in the event of underperformance, reporting to the trader, via a trader terminal having a client-side software application installed thereon, an adjustment of the actual stock influencer values to achieve the model performance in order to increase realized sales (or so-called rate of sale) and improve the sales opportunity (or so-called unrealized sales) for a following sales period, thereby providing the trader with an optimal stock replenishment number.

2. A method as claimed in claim 1 wherein the stock availability indicators are selected from the group consisting of: a sales volume indicator; a sales value indicator; a rate-of-sale indicator; an out-of-stock indicator; a stock availability indicator; and sales opportunity.

3. A method as claimed in claim 2 wherein the stock availability influencers are selected from the group consisting of: a master data influencer; a pricing influencer; a ranging influencer; a rate of sale influencer; a replenishment parameter influencer; a normal versus promotion influencer; a source of supply influencer; a planogram influencer; a minimum display stock influencer; a forecast influencer; an order frequency influencer; an order lead time influencer; an order grid influencer; an order grid compliance influencer; a corporate trader; franchise trader; and independent trader order compliance influencer; a strike rate influencer; a working capital influencer; a day’s cover influencer; a returns/waste stock influencer; a safety stock influencer; an overstock influencer; a dormant stock influencer; a deranged stock influencer; a delisted stock influencer; an excess stock influencer; an exit stock influencer; a negative stock influencer; a ghost stock influence; and a stock count influencer.

4. A method as claimed in claim 3 wherein the stock availability influencers are categorized as any one of: account maintenance or so-called “hygiene” influencers; supply and demand influencers; and stock level influencers.

5. A method as claimed in claim 3 or claim 4 wherein reporting of the adjustment to the trader terminal includes receiving, at the server, a query from the trader via the client-side software application installed on the trader terminal.

6. A method as claimed in claim 5 wherein the data warehouse has installed thereon an Online Analytical Processing Application (OLAP) for converting the raw sales and stock data into the structured actual stock influencer values and actual stock indicator values.

7. A method as claimed in claim 6 wherein the query is an on-line analytical processing application (OLAP) query.

8. A method as claimed in claim 6 or claim 7 which includes generating a report at any of the server and the client-side software application of the system and transmitting the report to the trader by manual or electronic transmission.

9. A method as claimed in claim 8 wherein generating of the report includes generating a report selected from the group consisting of: a detail report; a dashboard chart; a multi-dimensional view, a sales opportunity report corresponding to the key performance areas; a sales opportunity calculator report; and a consolidated report;

10. A method as claimed in any one of claims 9 wherein the report is generated on a level selected from the group consisting of: a national and regional level; a corporate, franchise and independent trader level; a store format and store level; a product category and brand level; and a product and article level.

11. A method as claimed in claim 10 wherein generating of the report includes expressing content of the report in a readily perceivable format such as percentages of values.

12. A method as claimed in claim 11 wherein the report includes a signal to the trader selected from the group consisting of: a high-alert signal; a warning signal; and a positive signal.

13. A method as claimed in claim 12 wherein reporting to the trader includes monitoring of the adjustment and signals, and based on the monitoring, suggesting to the trader an action for adjusting of the actual stock influencer values to achieve the model performance.

14. A method as claimed in any one of claims 9 to 13 wherein reporting to the trader includes determining and prioritizing at least one root cause of actual and anticipated performance in the key performance areas.

15. A method as claimed in claim 14 wherein reporting to the trader includes generating a key performance indicator-focused plan for a pre-emptive or corrective action for pre-empting and correcting the at least one root cause.

16. A method as claimed in any one of claims 14 to 15 wherein the trader terminal includes any one of a mobile device and a desktop computer and the client- side software application installed on the trader terminal includes any one of: a mobile device software application; a desktop computer software application; a browser application; and a web-based application.

17. A method as claimed in claim 16 wherein the server is hosted remotely in a cloud-based environment.

18. A stock availability and sales opportunity system which comprises: a server having installed thereon a server-side database and data warehouse, the server being in communication with a trader database, the server being operable to: define a sales period; define a key performance area of stock availability indicators; define a key performance area of stock availability influencers that influence the stock availability indicators; define target stock influencers values; defining target stock indicator values; retrieve raw sales and stock data from the trader database for the sales period; store the raw sales and stock data at the server of the system having installed thereon a server-side database; convert the raw sales and stock data into structured actual stock influencer values and actual stock indicator values by capturing the raw sales and stock data into a data warehouse having a database table structure that corresponds to the one or more key performance areas; calculate a sales opportunity (unrealized sales) by comparing the actual stock influencer values with the target stock influencer values; calculate an actual performance by comparing the actual stock influencer values with the actual stock indicator values; define a model performance of the impact of the stock availability influencers on the stock availability indicators; and compare the actual performance to the model performance, and in the event of underperformance, reporting to the trader, an adjustment of the actual stock influencer values to achieve the model performance.

19. A system as claimed in claim 18 which includes a trader terminal having a client-side software application installed thereon and in communication with the server.

20. A computer program product for optimizing stock availability and sales opportunity, the computer program product comprising a non-transitory computer-readable medium having stored computer-readable program code, the computer-readable program code executable by processing circuit to perform the steps in the method as claimed in claim 1.

21. A method of optimizing stock availability and sales opportunity as claimed in claim 1, substantially as herein described and illustrated.

22. A stock availability and sales opportunity system as claimed in claim 18, substantially as herein described and illustrated.

23. A new method of optimizing stock availability and sales opportunity substantially as herein described.

24. A new stock availability and sales opportunity system substantially as herein described.