Market Basket Reduces Out of Stocks by a Quarter, Inventory Levels 16 Percent

NEDERLAND, Texas - Market Basket, a privately held supermarket chain with stores in Texas and Louisiana, has completed the rollout of Retalix's DemandAnalytx store forecasting and ordering system after a pilot showed substantial improvements in out of stocks and inventory.

The system, called DemandAnalytx (DAX) Demand-chain Optimization Software, allows retailers, manufacturers, and distributors to achieve dramatic improvements in key metrics of supply chain performance. The DAX solution is fully web-enabled, and provides collaborative tools at the store level to utilize sophisticated algorithms to interpret POS data, forecast store-level demand and optimize replenishment orders, while taking into account the full complexity of the retail environment.

"The system is designed to improve product availability and reduce out-of-stocks," Retalix president, c.e.o., and chairman Barry Shaked told Progressive Grocer in an interview at the magazine's offices yesterday. "Plus, it is a self-learning system; so the forecasting results grow stronger over time."

That's not to say the results aren't powerful already. "Our out of stocks were reduced 25-30 percent and inventory was reduced by 16 percent," Market Basket president Skylar Thompson told Progressive Grocer. "Our stores have never looked better, and the results we've achieved using the DAX software solution have exceeded our expectations. The success of our initial pilot made it an easy decision to continue to roll out this order optimization system across the rest of our stores. The store managers were lining up to be the next site installed."

Tom Cormier, Market Basket's CFO, added, "This has been one of the smoothest software implementations I've ever been involved with. The level of support we received throughout the project was tremendous."

This support included daily contact with Thompson during the go live period. "Plus, the data requirements and file structure was clearly communicated to Market Basket's IT department," he said.

-- Joseph Tarnowski
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