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DALLAS - Following a successful Proof of Concept of DCM Solutions' demand chain management methodologies and technology, Balls Food Stores, a regional operator of 29 supermarkets in the Kansas City area, is planning to roll out the e-demand system across its entire chain.
e-demand is a store-based system for improving profit through shelf-level, demand based forecasting and replenishment.
Earlier this year, Balls Food Stores began looking for a solution to help right-size inventory and reduce out-of-stocks and write-offs, but one that would not compromise sales volume or downgrade customer service. Starting with a detailed Current Situation Assessment from Dallas-based DCM Solutions that quantified improvement potential, the company agreed to the proof of concept engagement in which more than 700 items from three departments -- meat, dairy and prepared produce -- were managed with e-demand.
The proof of concept required DCM Solutions to deliver target return on investment in the managed categories through reductions in write-offs and opportunity loss. The demand sensitive ordering capability of e-demand helped Balls eliminate out-of-stocks and lead to a sales increase of 14 percent among the items managed in the meat department.
Overall return on investment exceeded the required thresholds set by the grocer and prompted it to move forward with plans for its other stores.
The retailer said it plans to begin rolling out the solution aggressively early in the coming year. Balls Food Stores becomes the first customer of DCM Solutions to take advantage of the company's new subscription-based pricing. The retailer will license e-demand for use in all stores, but rather than the required traditional model of paying software fees up-front, the program allows the retailer to pay as it goes, only paying for what's installed and delivering value.