Update on configuration guidelines for forecasting in retail related to current sales situation

As we move along the current tectonic shift in retail, we have gathered a note for our customers to offer some system-related guidance from a perspective of forecasting and replenishment in retail – and the very specific current situation. This note is continuously updated, a bigger chapter has been added as of today, 8th March.

The note deals with the different stages of the pandemic impact on retail demand, and discusses different options to deal with them to help stabilize a retailer’s supply chain. It also includes practical observations you might find helpful.

As we all know by now, the impact on retail demand has been massive, still is, and evolves continuously with the spread and intensity of the crisis and the measures taken going along with it. So a differentiated approach is needed amongst different phases, locations, article groups, supply chain operations.

For example, a retailer may have a different set of tools to use for an altered but still consistent sales behavior, than in a situation, where sales and the points in time they occur are still fully erratic and triggered by panic. A retailer with a supply chain well under control down to the shelf will work differently with his demand than another one who faces continuous out-of-shelves or out-of-stocks, thereby dealing with completely distorted sales which form the basis for any demand forecast.

So we are currently seeing many different faces of the impact – and so does every single retailer.

We hope very much you, customers and partners, can take advantage of that note and the advice is helpful to you and your business.

Take care!