Sales Histories Corrections
The history correction module offers advanced features to improve the accuracy of historical sales data. XFR relies on advanced sales history correction to obtain an accurate sales forecast.
The module can be used to assess the impact of out-of-stock situations, promotions, exceptional sales and special events, in order to forecast normal demand.
By eliminating the biases caused by promotions, out-of-stocks and exceptional sales, obtain corrected and more reliable data for better decision-making in supply chain planning, inventory management and demand forecasting.
Storage and correction of promotional impacts
This module takes into account the effects of promotions on sales. It records information linked to different promotions and applies adjustments to historical sales data to reflect the real impact of promotions on sales.
This automatically generates corrected sales data, a key factor in improving accuracy.
Stockout-related corrections
The sales history correction module identifies these break periods and makes adjustments to reflect standard demand.
Eliminate out-of-stock bias and provide more accurate data for future analysis.
Correction of exceptional sales
The module identifies exceptional sales and corrects them to prevent them from distorting historical data.
Get more stable, representative data for better demand analysis and supply chain planning.
*6 months after deployment in 45 stores.
FAQ Sales Histories Corrections
FAQ 1: Why is it important to correct sales histories in supply chain management?
Correcting sales histories is crucial for accurate supply chain planning. Uncorrected historical data can be skewed by events such as promotions, stockouts, or exceptional sales. These biases can lead to errors in demand forecasting, thus affecting inventory management, supply ordering, and customer satisfaction. By correcting this data, a more realistic view of normal demand is achieved, enabling better decision-making.
FAQ 2: How can correcting sales histories improve the accuracy of demand forecasts?
By eliminating biases caused by exceptional events, corrected sales histories reflect a more accurate standard demand. This is crucial for improving forecast reliability. For example, adjusting for a temporary sales increase due to a promotion prevents overestimation of future demand. Thus, correcting sales histories leads to forecasts that are more aligned with market realities, reducing the risks of surplus or shortages in inventory.
FAQ 3: Should stockout sales histories be corrected together?
It is essential to correct sales histories in the event of a stockout. A stockout can distort the perception of actual demand, as sales decrease not because of lower demand but due to product unavailability. However, not all categories require systematic correction, and stockout thresholds can vary. The XFR history correction module identifies these periods and adjusts the data to reflect standard demand, thus providing more accurate future analyses.
FAQ 4: How does the Optimix XFR Supply Chain solution correct exceptional sales?
The Optimix XFR Supply Chain solution features a specific module to identify and correct exceptional sales. Such sales, which deviate from the norm, can skew the interpretation of historical data. By identifying and adjusting these, XFR ensures that the historical data reflects the actual demand, unaffected by exceptional events. Thus, businesses obtain more stable and representative data for effective supply chain analysis and planning.
FAQ 5: How does the module distinguish a stockout from a drop in demand?
Correctly identifying a stockout is crucial to avoid forecasting errors. The module uses advanced algorithms to analyze sales data trends. In cases of significant variation without an apparent reason (like a promotion or a special event), the system recognizes this period as a potential stockout. Moreover, by integrating additional data, such as inventory information or supplier reports, the module can confirm or refute these suspicions to make accurate adjustments.
FAQ 6: How does the XFR solution integrate with other existing supply chain management systems or ERPs?
The XFR solution is designed to be compatible with many supply chain management systems and ERPs. Its modular architecture allows for seamless integration with other platforms, ensuring a smooth transition and optimal use of data. This flexibility guarantees retailers a quick implementation and efficient collaboration among various tools used in their ecosystem.
FAQ 7: How is the confidentiality and security of historical data ensured when using the XFR solution?
Data security and confidentiality are paramount for XFR. The solution employs advanced security protocols to ensure that information remains secure. Measures such as data encryption, strict access controls, and regular audits are implemented to prevent any data breaches. Retailers can thus be confident in the protection of their valuable information while benefiting from the advantages of the solution.
