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Home » Industries » Electronics Distribution
Electronics Distribution
Although it is subject to many of the same hurdles most industries face (such as market saturation and economic downturns), the consumer electronics industry has fared better than most in times of flux. Technological advances and ever-changing product lines have helped the industry avoid major saturation problems by making existing products appear outdated. This also creates the challenge of keeping a fresh selection of products available to customers while managing an ever-increasing number of SKU's. Customers have developed an expectation of on-demand stock and very quick turnaround times for orders.
Key Absolute Value solution elements for the Electronics Distribution Industry
| Obsolete inventory |
Best-fit, formula-based forecasting allows for more accurate stocking decisions. |
| Limited visibility to major customers' future needs |
Absolute Value's Collaborative Forecasting provides a vehicle for capturing information specific to major customers' anticipated buying patterns. |
| It is easy to purchase inventory beyond the life cycle of a product without realizing that too much is being purchased. |
Absolute Value provides ultimate visibility by defining a forecast trend, and highlighting products so that the user can preview the forecast in order to avoid purchasing products that would otherwise require a markdown in order to sell them. |
Realizing and avoiding the purchase of excess inventory (inventory which won't be sold before the product is obsolete). |
Absolute Value makes it easy to redirect the history of an obsolete product and assign it to a new item, driving a much more accurate forecast. Obsolete or excess inventory is also excluded from history so as not to be mistaken as run-rate sales. |
| Understanding and purposely stocking surplus inventory (inventory which will be sold at some point, but is more than you need in the near-term periods). |
Absolute Value identifies inventory need, surplus, and excess across your company on a daily basis and gives you the visibility of your entire company when making a buying decision. This means you will see if you have inventory stocked in another location that might be better transferred than purchased. |
| Calculating an accurate forecast in the face of product promotions. |
Absolute Value separates the anticipated forecast for promotions, and enables the user to adjust historical usages for promotion-based sales. |
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