TECHNOLOGY

Regional grocer regulates goods flow

BY Dan Berthiaume

Raley’s is optimizing the movement of inventory according to consumer demand.

Privately-owned Raley’s, which operates 129 stores in California and Nevada, is implementing Itasca’s Magic inventory management platform. Raley’s will leverage the Magic solution for ordering and inventory optimization, as well as direct store delivery (DSD) receiving.

Magic forecasts consumer demand along with sales, and then applies algorithms to order the right quantity of the right products based on forecast results. The system optimizes the replenishment and management of store-level inventory for all departments.

Raley’s early pilot results have been positive. The company has seen a decrease in out-of-stocks, a reduction in excess inventory, and therefore, an increase in sales. Based on these metrics, Raley’s will now roll out Magic to all its stores.

“Better management of inventory is of critical importance, providing better accuracy, less out-of-stocks and higher quality products,” said Kevin Konkel, COO, Raley’s. “Since implementing Itasca Magic, we have seen significant improvements in on-shelf availability resulting in same-store sales increases and reductions in overall inventory in our early store implementations. We look forward to getting the Itasca system into the rest of our stores, so we’ll have the products our customers want and more, creating an even better shopping experience.”

Headquartered in West Sacramento, Calif., Raley’s operates 129 stores under five banners: Raley’s, Bel Air Markets, Nob Hill Foods, Food Source, and Market 5-ONE-5.

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