Promotions: Blessing or nightmare?

Promotions are usually interfering with the regular demand forecasting process. The effects of promotions on demand can be very significant and ERP systems do not offer the flexibility to manage it properly.

"60% of all incidental costs are related to promotions"

A big part of all incidental logistics costs are caused by promotions. One retailer even calculated that 60% of these unexpected costs were related to promotions. This included partial shipments, express delivery, 'make good' discount, obsolete stock and repacking costs. Slim4 is able to distinguish normal demand and promotional demand. It will adjust stock levels in time, in order to generate maximum extra sales while making sure that at the end of a promotion there is no unnecessary stock left.

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