Advanced Planning and Replenishment Key to Improved Customer-Centricity, Says New AberdeenGroup Report; More Than a Quarter of Retailers Surveyed Plan to Update Their Planning and Replenishment Systems

Business Wire, Jan 12, 2006

BOSTON -- According to a just-released study by Aberdeen, "The Business Benefits of Advanced Planning and Replenishment: A Benchmark Report," advanced planning and replenishment is a top priority to over three fourths of study participants. This priority is in direct response to lost sales caused by store-level out-of-stocks, cited by nearly three quarters of participants as the single biggest retail pressure.

Forty-four percent of retail respondents reported that their companies have been using advanced planning and replenishment systems for over one year, yet 33% of respondents reported at least "tweaking" the results these systems generate, while a surprising 16% reported that they create their plans in spreadsheets and then import those plans into their "advanced" systems.

According to the report, retailer attempts to improve their in-stock positions using older advanced planning and replenishment techniques have been unsuccessful. Out-of-stock rates have remained relatively constant at approximately 8% over the past decade.

"Out of stocks are the dirty little secret of all retailer segments and tiers," says Paula Rosenblum, Aberdeen's director of retail research, and the report's author. "Lost sales are a far bigger problem than markdowns for overall retailer health."

"The key business benefit of today's advanced planning and replenishment technology is its ability to solve this seemingly intractable problem," notes Rosenblum. "Aberdeen's latest research confirms that advances in usability, scalability and improvements in the math are key differentiators in today's planning and replenishment technologies."

The report provides key recommendations to help retailers, from the best in class to those currently lagging, move to adoption.

To obtain a complimentary copy of the report, go to Aberdeen.com or follow this link:

http://www.aberdeen.com/link/source.asp?cid=2469&pid=AP011206PR

About Aberdeen

Founded in 1988, AberdeenGroup is the trusted advisor to the Global 5000 for value chain strategies and technology advice. Through its continued benchmarking and analysis of value chain practices, Aberdeen offers a unique mix of research, tools, and services to help G5000 executives assess their value chain performance, develop improvement strategies, and select value chain solution partners.

For more information, visit www.aberdeen.com or call 617-723-7890.