Wholesale

The wholesale sector is characterized by large volumes of procurement and sales, in combination with a small margin. In such a situation, the cost of mistakes is much higher, therefore the most important challenge that any wholesale company faces is the management of trade stock. This problem is quite complicated since it involves such issues as procurement optimization, ensuring efficient delivery, best stock placement in the warehouse, etc.

In addition, a number of other important issues should be resolved: maintaining the company’s financial stability, satisfying the clients’ needs as far as possible, and controlling distribution channels. Loginom contains all the necessary tools for developing analytical solutions for wholesale trade:

• Analytics. This allows rapid assessment of the current situation to identify positions with low turnovers, critical expiration dates, irregular demand, and to carry out ABC and XYZ analyses. It also allows research into the demand specifics and its distribution by clients, regions or commodity groups.
• Demand forecasting. Loginom allows the creation both of simple models based on average sales, rate of sales in different groups or procurement frequency, and complex self-training models which take into account seasonal fluctuations, trends, external factors and lifespan of goods. It is possible to create forecasts with various kinds of refinement: by groups, by categories or by merchandise.
• Procurement optimization. Loginom makes it possible to implement procurement optimization mechanisms based on generated forecasts, and to calculate the optimal reserve stock, procurement time, assortment, and the automatic celection of suppliers. During the optimization it is possible to take into account the interdependencies between the commodities and the specifics of customer behavior.
• Client base analysis. The clustering, modeling and pattern search techniques can be used for performing deep analysis of the customer base, the specifics of consumption by each type of consumer, and understanding their preferences. Such knowledge contributes to creating an efficient loyalty system, organizing cross-sales, and optimizing the discount system.

The problems intrinsic to wholesale companies described above are not the only ones that can be resolved using Loginom. The system also allows the consolidation of heterogeneous information, and can resolve budgeting problems, analyze money flows, assess the influence of marketing activities, carry out competent positioning, etc.