The optimization of cash flow, addressing working capital challenges, has been a pressing concern in the retail sector in recent years. The disruptive forces of the Covid-19 pandemic, economic downturns, inflation, and escalating interest rates have disrupted supply chains, business relationships, and even customer purchasing behaviour. Yet, in many instances, the retail sector has maintained its traditional operations, struggling to harmonize supply and demand.
This often culminates in retail stock facilities brimming with excess stock inventory, cash flow problems for retail chains and needlessly occupied space that could be allocated to more lucrative merchandise. Additionally, this situation leads to working capital challenges, as companies frequently find themselves short on the funds necessary for further business operations, including payroll.
Addressing and rectifying unsold inventory forms the crux of the solution to these challenges. Even the most sophisticated ordering systems fall short in predicting customer behaviour and the precise volume of merchandise to stock. However, YDISTRI offers a solution in the form of a replenishment redefinition through redistribution models, transforming difficult-to-sell stocks into profitable goods and solving unsold inventory for retailers.
Leveraging an intricate algorithm, YDISTRI identifies overstock and dead stock, matching them with the most suitable retail branches experiencing high demand for these specific items, significantly enhancing the chance of a sale. YDISTRI proposes the optimal mix of goods for redistribution among branches, ensuring a profitable operation overall. All calculations and projections stem from comprehensive datasets encompassing standard elements such as inventory management, accounting, and logistics.
So far, YDISTRI's inter-store transfers have demonstrated the potential to increase the net profits of retail companies by 6 to 20% and liquidate up to 90% of dead stock. This pivotal achievement underpins YDISTRI's selection of SAP SE for its startup program, focusing on the future and consumer engagement within SAP.iO Foundry Paris. This intensive six-month initiative revolves around business-to-consumer interactions and aims to provide all the necessary tools and solutions to significantly enhance the experiences for the end customers, with a particular emphasis on shopping.
"We are delighted that SAP recognizes the potential in YDISTRI and has identified our solution within SAP.iO Foundry as the optimal remedy for inventory optimization and the swift sale of stagnant or slow-moving inventory. According to our experience, this area is often underestimated, and retail chains often lose a lot. Not only revenue, but also cash that they could otherwise use effectively for business development. We are looking forward to our par ticipation in this project and also hope for a deeper collaboration with SAP in the future," states Roland Džogan, CEO of YDISTRI.
Being selected for the SAP.iO Foundry program signifies a close-knit collaboration on business development and an official partnership with SAP for YDISTRI. Following the successful culmination of this six-month initiative, YDISTRI will seamlessly integrate with SAP and be featured on the SAP marketplace application platform and extend the rich SAP ecosystem to include deadstock inventory.