Revionics Customers Include

Announcing The Revionics Customer Forum

By Todd P. Michaud, Revionics President & CEO

Todd MichaudAs we enter the second quarter of 2010, Revionics and the retailers we serve are in full swing. With so much news to share, we have assembled highlights in this newsletter to keep you informed of our progress. In particular, we have included articles related to solution innovation with our G4.5 release, partner news with Invatron, tips from Consulting Services, and of course highlights past and future events, such as FMI and our NACStech.

Speaking of events, I am pleased to announce the first annual Revionics Customer Forum! Save the date, and join us in Sacramento, California on September 21st through the 23rd. Although details are not finalized, Revionics will host a two-day event which will include customer panels, industry analysts, peer networking, strategic training, and advisory sessions. The agenda will be tailored to suit both senior executives as well as power users. We are currently collecting feedback from our customers as to desired content. Please send your suggestions to Susan Boyme, our VP of Marketing, who is organizing this year’s agenda.

As our solution portfolio grows, and as our customers’ needs gain complexity, Revionics has embraced the opportunity to expand our retail services. These services range fromCustomer training to implementation, consulting, and analytic services. With that inmind, I am also pleased to announce the addition of Kathleen Egan, VP of Professional Services to the Revionics team. Egan now manages Revionics University, Consulting Services, and the Project Management team. Kathleen brings a wealth of experience and retail credentials to Revionics, and I hope you get an opportunity to work with her in the near future.

In closing, Revionics is diligently working on a continuous basis to advance our solutions and services to exceed the needs of our customers. If you have any questions, please do not hesitate to contact me at tmichaud@revionics.com. I look forward to hearing from you soon.


Solution Enhancements: Announcing Revionics G4.5

By Dan Mullen, Revionics Technical Writer

Revionics is pleased to introduce our newest product release, G4.5, which includes enhancements that will make the use of the Revionics portal more efficient and productive. For example, G4.5 includes a completely redesigned store- product hierarchy filter that allows the display of virtually any combination of product departments, categories, and subcategories.

Revionics G4.5 furthers our commitment to constantly improving our demand intelligence solutions based on retailer needs. This version delivers the following productivity enhancements, many of which originated as customer requests:

Store-Product Hierarchy Filters:

Retailers have told us they need to be able to slice and dice their pricing information for products in a multitude of ways, without being restricted to an “all or one only” limitation when viewing product departments, categories, and subcategories.

With the enhanced filters in G4.5, viewing any combination of a product hierarchy is as simple as clicking checkboxes for the products you wish to view. In the example shown, the entire Dairy department is being selected along with the Cheese and Cheese Bar categories from the Deli department.

Product Hierarchy Filter

Other benefits of the enhanced hierarchy control include:

  • Clean, uncluttered look on portal screens
  • View and select from the entire product hierarchy in a single, expandable “product tree”
  • Faster screen refresh when switching hierarchy views

Streamlined On-Demand Optimization

On-demand optimization, used in the Planning, Markdown and Promotion, is more user-friendly and efficient, and an optimization status monitor has been added.

View Item Details from Markdown

Markdown subscribers can now access the Item Details window directly from the markdown planning screens, bringing transparency and increased functionality to the process.

Private Label Gap/Good-Better-Best Pricing Enhancements

For Everyday Pricing subscribers, additional flexibility has been added for multi-tier pricing. The price at one tier is no longer restricted to being calculated relative to the tier immediately above it when defining private label gaps or good-better-best pricing. Now, the price at any tier can be referenced and calculated from any other tier.

Revionics G4.5 concentrates on providing Revionics customers with the world-class responsiveness and support that helps them achieve profitable growth and longevity through the use of our solutions. When customers ask, we listen and act!

Custom Price Family Numbers

Previously, price family numbers were system-assigned and numerical only. Now, retailers can assign their own numbers, which can include alpha characters, when setting up a price family in the portal. This allows relating price family numbers to other internal values that might be used, such as SKUs that contain alpha characters.

Option to Consider Cost Locks in Optimization

Everyday pricing customers can now change and lock a cost in the portal, then configure the system to optimize and make price suggestions based on that locked cost. If you use the cost lock feature for “what-if” pricing scenarios, you can leave this option switched off in your default scenario so that weekly optimization continues to use your actual current cost.

‘Not’ Operators Supported in Advanced Search

With this enhancement, search operators can be switched to ‘Not’ operators (such as NOT Equal and NOT Like), making searching by exception easy.

…Many more features are included in G4.5. If a feature request specific to your organization is included, Revionics Customer Support will notify you!

Revionics G4.5 concentrates on providing Revionics customers with the world-class responsiveness and support that helps them achieve profitable growth and longevity through the use of our solutions. When customers ask, we listen and act!


Five Things Retailers Should Plan For In This Quarter

A Group Contribution from the Revionics Consulting Team

If any of us had a crystal ball, we would most likely be enjoying a relaxing life somewhere, as we would have foreseen the recent changes in our economy and been better prepared to weather the storm. But since most of us are not privileged to that mystical tool, let’s talk about a few things we should all have on our immediate radar and be planning for as we look to the coming months.

  1. Stabilization of the economy: Even though home prices are still slumping, and the jobs picture is only seeing slight glimmers of hope on the horizon, it appears that the worst recession in 70 years is behind us. Retailers that have been able to manage inventory and pricing through this turbulent time are well positioned for the future. As the economy begins to gain momentum over the coming months it will be important for retailers to continue focusing on KEY elements of their business that have defined them to their customers. Things like value proposition, loyalty, service, and value-added benefits need to be safeguarded and used as spring boards into the future. The ability to engage in predictive analytics or Future Planning will be paramount as we exit this economy. Being able to create “what if” scenarios in a real-time environment, such as is possible with Revionics Planning will allow retailers to keep ahead of the curve.

  2. Shifts in consumer behavior: According to IRI’s recent FMI Economic Trend analysis for 2010 – “Consumers began embracing a range of money-saving strategies as means to survival earlier in the recession. They have quickly become engrained, and all indications are that consumers will continue with these tactics for the foreseeable future.” Consumers have become very value oriented. It is important to remember that value is an equation, not just a price point for the majority of customers.

  3. New directions for private label: More consumers across ALL income and age segments are trying private label and recognize the total value of these brands vs. name brands. In the food segment alone, retailers have enormous upside potential in private label initiatives that encourage trial and repeat purchases across food and nonfood categories.

    One of the key components to future success is a resetting of their current paradigm to a mentality of leadership rather than that of a follower. This takes a forward-looking approach, using predictive analytics created from and supported by their individual consumer demand indicators. Retailers must continue to evaluate their offerings through the filter of value proposition to their customers. Brand consolidation, based on eliminating confusion within a segment, will allow for better placement of private label offerings for continued penetration and profitability. Product planning, including an understanding of the role and interaction of each product, is critical to achieving maximum success at the enterprise level. Penetration of private label offerings, as well as maximizing the national brand potential, are both tied to this very important effort. Merchandising and advertising tactics that help build the brand in-store will be needed to maximize success in the future.
  1. Potential shifts in store cluster dynamics: With virtually all demographic and socioeconomic lines impacted by the economy, what held true for retail store clustering a few years ago might not be true today. Stores that have traditionally catered to an infinite flow of disposable income are today seeing higher redemption of coupons and greater dilution from ad shopping than ever before. Specialty departments are suffering or are being closed in many of these stores. Revionics Consulting group can assist retailers in determining if their current zone structure is relevant with the recent changes. We can assist in determining if current stores are in the correct clusters and if the appropriate number of zones are being used to maximize profitability.
  2. One of the key components to future success is a resetting of their current paradigm to a mentality of leadership rather than that of a follower

  3. A balanced approach to promotions: With the consumer focus on value, and manufacturer’s willingness to invest in promotions rather than cost reduction, we have just gone through one of the most promotionally intensive time frames in recent retail history. While price and promotion have become a bigger differentiator than ever before, a merchant’s ability to control the MIX of prices through optimization and promotional pricing tools will help keep margins on target. The ability to evaluate the effectiveness of promotional offers and their impact on lift, affinity, cannibalization, and contribution to profitability at both the category and enterprise levels is crucial. Strategic pricing, both everyday and promotional, supported by technology continues to be recognized as an enormous opportunity for retailers. An integrated approach to all aspects of the pricing lifecycle, such as is offered by Revionics, will be critical in making the most of the pivotal time ahead.

Even though the immediate future still appears rocky, there does seem to be a brighter future just around the corner. Revionics stands ready to assist retailers in navigating these emerging waters with its full suite of lifecycle pricing tools and consulting resources.


Egan Joins As Vice President of Professional Services

By Alisa Davis, Human Resources

The newest addition to the Revionics team is Kathleen Egan, Vice President of Professional Services. Egan will oversee the Revionics Consulting and Project Management departments, as well as Revionics University, our educational and training forum for retailers.

"There are many things I plan to accomplish at Revionics. I plan to get our organization ready for the growth ahead, including supporting more complex customers, the launch of new products, and expanding into new verticals. There is exciting growth ahead and I am very excited about it"

- Kathleen Egan

Egan joins the Revionics team after previously working at Oracle Corporation for over 10 years. There, Egan held a number of different titles including Senior Program Director & Implementation Director, Director of Planning & Optimization, Director of Global Sales Consulting and, most recently, Senior Director Solution Architecture and Sustainability in Retail. In this position , Egan served as the executive contact and trusted advisor on leading industry practices such as localization, customer centricity, and supply chain efficiency. She initiated and crafted Oracle Retail’s Sustainability in Retail Project and managed teams from the RGBU, Oracle Enterprise Business Systems, and Oracle Technology to present unified solutions to clients.

In addition to her industry dedication, Egan devotes her spare time to environmental activism. As founder of the “Stop the Plastic Wave” awareness and clean-up group, she created a collection of plastic mosaics made from trash collected from the Pacific Ocean and a life-sized sculpture generated from plastic bottles. She presently holds the title of Director of the San Francisco Surfrider Plastics Campaign. Egan also co-founded the grass roots cleanup effort, “Kill the Spill,” in response to the Cosco Busan Oil Spill. Egan’s efforts there include rallying over 500 volunteers overnight, enabling future San Francisco volunteer efforts as well as fostering new clean-up technology.

Please join us in welcoming Kathleen Egan to the Revionics Team!


Revionics Launches Corporate
Program To Support Feeding America

By Susan Boyme, Vice President of Marketing

Susan Boyme

Revionics employees have been enthusiastic about giving back to the community – the place we live, and the community we serve. Feeding America was chosen as our partner to give back to the communities that have been so good to us over the past several years.

Right now, millions of Americans are struggling with hunger. In fact, one in six Americans is hungry. These people are hard-working adults, vulnerable children, and struggling seniors who simply cannot make ends meet and are forced to go without food for several meals, or even days.

Feeding America is a network made up of individuals, local food banks, and corporate and government partners. Partners like Revionics can help to secure food, provide funds, advocate the cause, or simply assist with food distribution. Starting immediately, Revionics is launching corporate programs that contribute to Feeding America – including contributions of employee time, strategic collaboration, and, when possible, financial donations. FMI 2010 marks the launch of our relationship. Revionics is mailing FMI attendees a specially marked $1 bill in advance of the event.

For every $1 redeemed at our booth, Revionics will contribute $10 to Feeding America. With this campaign, FMI attendees can get involved in supporting the cause!

Revionics encourages retailers to get involved in their local communities as well! Give us a call to learn more about how Grocers and Distributors can contribute to local food banks and have an immediate impact in their communities. As partners of Feeding America, Revionics will be organizing our community of customers to make it easy to learn more and get involved! For more information, contact me at sboyme@revionics.com!


Integrated Forecast: Solving the Problem of Net Impact

By James A. Sills, Revionics CTO

James A. SillsRevionics’ mission is to increase retailer profitability by enabling better management of price, promotion, markdown, and inventory. Revionics is unique in that we offer an integrated solution that shares a common demand forecast across all of these functions. Why, you may ask, is an integrated solution better than individual point solutions?

First, let’s cover some basics. A demand forecast is more accurate if it accounts for all price, promotion, and markdown activities. For example, demand will increase during promotions. The demand forecast must also account for seasonality, including holiday lift, day of month, and special events. Finally, the demand forecast must reflect cannibalization and affinity. For example, we’ve seen promotions on Campbell’s Tomato soup cannibalize Chicken Noodle and drag along sales of Kraft American Cheese used to make toasted cheese sandwiches.

Second, let’s not confuse a demand forecast with a sales forecast. A demand forecast estimates how much you might sell, while a sales forecast estimates how much you will sell. Why is there a difference? In short: assortment, space, and inventory. Let’s take an example: Suppose that the demand forecast for Tide Detergent is 30 units in a given store for a given week. However, the assortment plan-o-gram allows just one facing with a shelf capacity of 7units. The workforce plan calls for the shelf to be replenished every three days. At most, you can sell only 21 units during a given week. The sales forecast must be lower than the demand forecast.

Let’s consider just pricing for a moment. Suppose we are modeling and optimizing prices in a category. The prices will be implemented in the store in six weeks. Optimization recommends decreasing the price on Hefty Recycling Bags. However, the assortment plan shows that these bags will be discontinued eight weeks from now. An integrated solution won’t waste the price change on an item that is being discontinued--a point solution would.

When it comes to assortment and space planning, integration with price, promotion, and markdown is easy to justify. Any item that is discontinued from the assortment should automatically go on markdown. Assortment and space optimization depends on price and promotion. For example, an item may be eliminated from the assortment if its price is high, but at a lower price, it might make the assortment cut. An item may have enough facing for everyday pricing, but what if the item is promoted frequently. Then the shelf space should be supplemented by either an end cap or a display. Or, suppose an item does not make the assortment cut, until one considers the lucrative vendor incentives received for promoting that item. There is also the argument that if the demand is so high that I keep running out, should I increase the price or increase the facing? Only an integrated solution can provide the answer.

There are several examples where Inventory optimization depends on price and promotion. Everyone knows that promotions can have a huge impact on demand and consequently on order quantity. To a lesser extent, the same is true of base price changes. But does everyone understand how a promotion might cannibalize sales? For example, a general merchandise retailer might have a location with only 25 packages of Fruit of the Loom T-shirts on the shelves. Normally this would not be enough, but due to a promotion on Hanes T-shirts, the cannibalization of Fruit of the Loom means I have more than enough.

An integrated solution solves many problems for both the retailer and the vendor. While this all may seem too advanced, consider the pace of change in the world today.

Another consideration is avoiding vendor disconnects. For example, suppose a vendor offers an incentive and the retailer runs a promotion. The vendor may have planned for 100 cases, but the retailer’s demand forecast is 200. If the vendor doesn’t have the supply to meet demand, the retailer suffers lost sales. This can be avoided by sharing the demand forecast with the supplier thru Revionics Collaborate, our Supplier Portal. Here, the retailer can share the promotion plan and the forecast with their trading partners, and the supplier can submit deals that are better tailored to meet demand expectations.

An integrated solution solves many problems for both the retailer and the vendor. While this all may seem too advanced, consider the pace of change in the world today. Revionics is actively driving change and delivering tomorrow’s solutions today.


Partnership with Invatron Helps Retailers
In Fresh Food Industry

By Monty Waltz, SVP Sales, Revionics, Inc

Revionics is proud to announce its strategic partnership with Invatron Systems Corporation. Invatron offers an integrated suite of products targeted to improve a retailer’s fresh item profitability in meat, bakery, deli, and produce departments.

Invatron created the PLUM Scale Management system, which is an application that helps to manage perishable items and fresh food products in a grocery store as well as throughout the entire chain. These management tools address the complexity of pricing recommendations for food products sold by weight. Over 12,000 grocery stores currently utilize the PLUM Scale Management system to manage all of their operational information regarding fresh food items. Grocery operators are able to accurately detect out-of-stocks, reduce shrink, and receive recommendations for production scheduling.

Another Invatron solution, PLUM-Host, is an Enterprise-level application for fresh food management information at the Corporate, Region and Store levels. Invatron also has the tools to help retailers offer the right promotions at the right time with Promotional Content Manager. PCM allows retailers to print targeted coupons for customers on weigh scale labels, triggered by unique scale events, before the customer reaches the checkout line.

Most recently, Invatron released PeriScope DSS. This application helps retailers optimize fresh food operations under a number of different market situations. PeriScope is completely web-enabled, can operate in a distributed client/server environment or as an Application Service Provider, and provides all-inclusive reporting of in-store activities related to self-service inventories.

The recent partnership with Revionics will benefit Invatron customers in that they will be able to send data to Revionics in a turn-key fashion, optimizing products that are perishable and maintained in any of the Invatron systems, including PeriScope DSS, PLUM Scale Management system, and Promotional Content Manager. Revionics will aid in making sure these items are kept on the shelves, ultimately improving overall sales and margins.

Retailers wanting more information about the synergies between Revionics and Invatron can send an email to moc.scinoiver@ztlawm


Family Dollar Featured
At Retail Technology Conference

By Tricia Michaud, Marketing Coordinator

The annual Retail Technology Conference, produced by RIS News, has consistently attracted top retailers to a content-rich agenda. The Retail Technology Conference is an educational event, ideal for executives interested in networking and learning about strategic imperatives in retail business and technologies.

This year, the conference took place on April 7-9th at the Ritz-Carlton Orlando Grande Lakes in Orlando, and focused on the theme “The Shopper-Centric Enterprise,” a relevant and important issue for retailers conducting business in a recovering economy. Several sessions and workshops were held at the conference and were presented by industry experts and leading retailers, all focused on the topic of consumer centricity.

Scott Zucker, Vice President of Merchandising at Family Dollar, presented a session titled “Improving Customer Relevancy through Shopper-Centric Intelligence.” Zucker demonstrated how Family Dollar initiated a merchandising transformation which improved customer reach and relevancy in a time of fluctuating consumer spending. Additionally, he shared ways in which Family Dollar leveraged price, promotion, product and placement to drive results in such a difficult economy. The Everyday Pricing solution from Revionics was mentioned as an important tool used by Family Dollar.

Other interesting topics discussed at the event included:

  • Retailers continue to look for ways to contain costs; projects must show a return on investment in 6-12 months.
  • Adding analytical insight, or demand intelligence, was described as the #1 solution to pain points over the next three years.
  • Mobile applications, eCommerce, and social media are hot areas for retail investment.
  • 2010 investments include Promotion Effectiveness (#5 on the list) with 30% of retail respondents investigating these solutions. Another 25% are evaluating ways to improve store-level visibility and efficiency.
  • The general mood for retailers in attendance was “guardedly optimistic.”

For more information on other RIS Events, visit www.risnews.com.


Industry Event Calendar

NACStech 2010
May 5-7, 2010
Ernest N. Morial Convention Center
New Orleans, LA - Booth # 627

FMI 2010 Show
May 11-13, 2010
Mandalay Bay Convention Center
Las Vegas, NV - Booth # 6310

NRFtech 2010 Show
August 15-17, 2010
The Ritz-Carlton, Half Moon Bay, CA

Revionics Customer Forum
September 21-23, 2010
Sacramento, CA

Featured Events

Panel Discussion: Trends in Pricing and Promotions for 2017

Panelists include Andres Valdivieso, CIO of Farmacorp; John Fleming, former EVP/Chief Merchandising Officer for the Wal-Mart; Sahir Anand, Principal Analyst and VP Research at EKN Research; and Cheryl Sullivan, Chief Strategy & Marketing Officer at Revionics.

View Replay

98th Annual WAFC Convention

Join us at WAFC! Our team is eager to meet you and share how our solutions are helping food chains around the globe to expand margins, increase sales, and create a sustainable competitive advantage.

Palm Desert, CA | May 6-10, 2017 | Schedule a Meeting

Revionics Insight 2017

The excitement is building for Insight 2017, a high-energy interactive event bringing together the top minds in retail for two days of networking, learning, knowledge sharing and innovative sessions.

Austin, TX | Sept 24 - 27, 2017 Save the Date!

Thought Leadership

Featured eBook | The Race for Relevance

How Retailers Can Lead in an Age of Disruption

Download eBook >>

Featured eBook | Stop Paying the Price for Bad Promotions

Download this eBook and discover how to deliver PROFITABLE promotions today.

Download eBook >>

Featured White Paper | 5 Tenets of Dynamic Pricing

Don’t Just Cut Prices, Craft Them.

Download eBook >>