West Sacramento, California-based Raley's says it is implementing Itasca Magic computer-generated ordering and inventory optimization in all of its locations.
The Magic system from Itasca — based in West Des Moines, Iowa — forecasts consumer demand and sales and uses algorithms to order the right quantity of the right products. The company says magic is a field-proven software solution that optimizes replenishment and management of store-level inventory for all departments.
“Better management of inventory is of critical importance, providing better accuracy, less out-of-stocks and higher quality products,” says Kevin Konkel, Raley's Chief Operations Officer. “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.”
Raley's says early results have been positive. The company has seen a decrease in out-of-stock, a reduction in excess inventory and an increase in sales.