Celonis, a global leader in Process Mining, announced the launch of the Celonis Inventory Lifecycle Optimisation powered by Peech.
The new solution, co-developed by Celonis and Peech, enables retailers and consumer packaged goods (CPG) companies to reduce product waste and lost revenue by optimising the process of managing perishable inventory.
Adjusting, or marking down, the price of products with a limited shelf life, such as fresh produce, baked goods, or any product that can become unmarketable, is a crucial aspect of inventory management for retailers and consumer packaged goods (CPG) businesses. It’s also critical for reducing food waste.
Traditional inventory management systems can identify perishable products that are at risk of expiring, but they lack the ability to track adherence to standard markdown processes. Missed markdown opportunities can result in unnecessary product disposal, leading to inventory loss (or shrinkage) and negatively impacting revenue.
“Retail and CPG’s incredibly tight margins leave no room for operational inefficiencies,” said Dean Tarpley, Industry Principal for Retail & CPG at Celonis.
“The Inventory Lifecycle Optimisation app enables organisations to identify process improvement opportunities, take action to increase markdown adherence, and monitor the effectiveness of those efforts. We’re excited to partner with Peech as we work together with our customers to optimise operations and reduce unnecessary waste.”
Optimising Markdown Adherence with Process Intelligence
The Celonis Inventory Lifecycle Optimisation app, powered by Peech, identifies and quantifies missed revenue opportunities by tracking markdown adherence and highlighting areas for improvement. It provides:
- Increased visibility for data-driven improvements: Monitoring shrink prevention processes across all levels of the business, companies get in-depth insights to better identify and understand adherence improvement opportunities. Main View that tracks compliance and performance at the region, market, store, department, and even associate levels, enabling targeted process interventions.
- Better tracking of intervention effectiveness: Companies can observe the impact of process changes over time, with a user-customised targeted view on the specific areas they care about most. Once interventions are made, a Monitoring View lets companies track the impact of their process improvements over time, in both relative rate and recaptured revenue contexts.
- Customised reporting: Companies can use insights from the app to drive impactful process improvement conversations through built-in user-specific notifications. Customers can elect to have scheduled notifications that highlight the improvement of the stores, departments, etc., sent to managers and decision makers (via Celonis Action Flows).
The Celonis Inventory Lifecycle Optimisation app is the latest addition to the Celonis Platform Apps Program, enabling companies to quickly realise value with solutions built by Ecosystem partners on the Celonis Process Intelligence Platform.
A leading global retailer is already using this solution from Celonis and Peech to minimise shrinkage in perishable inventory, improving its sell-through rate by two percent and leading to a projected USD 35M in recaptured revenue.
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