Vendor Relations and Supply Chain Optimization
He also noted that different staff members are responsible for different departments, and these visualizations make it easy for them to understand their area of responsibility. FavTrip also uses AI tools to identify potential theft or fraud by analyzing patterns in register activities like voids and returns. “We take a full month’s data, and we like to tell the AI to make sense of areas where no-sale/void ticket returns are being over-utilized,” Sultan explained. “And the beauty about AI is it does have recommendations. I don’t have to do any guesswork. It is telling me that from 8 to 9 is the highest risk period. There’s these many voids, these many no sales, right? It’s the evening shift, and this is when it is high, and it has recommendations as well. Now we can address the issues before they get worse. That is a top priority.”
“ You have a competitive edge if you know your store data and you can make smarter decisions
A large portion of the discussion focused on how data analysis has transformed vendor relationships for retailers. Sultan described a fundamental shift by emphasizing that, “Our vendor relation has changed quite a bit for the better. Early on, we would just take them at their word.” The data-driven approach has changed this dynamic: “Nowadays, our relationship has flipped very much, and we look at it as a positive. We don’t want the vendor making the order anymore. Our relationship now is, ‘Here’s what we want and send it to us.’” This discussion highlighted distribution challenges that many operators are facing. Raymond Huff , president of HJB Conve- nience, noted increasing problems with beverage vendors. He shared that some vendors are now limiting deliveries to once per month, prompting his stores to look for alternative sources. Huff described turning to Costco for some beverages. The group discussed how data analysis can help navigate these distribution challenges. Taylor explained that the trend toward less frequent deliveries is likely to continue. He emphasized that data-driven ordering can reduce this need for safety stock. Rmarts LLC CEO Rob Razowsky and Bambury, Inc. President Chris Bambury agreed with the distribution and inventory challenges that Huff and others articulated. Sultan shared how FavTrip has adapted to changing vendor relationships, seeing it as an opportunity to maximize their
from that. Babir Sultan , President, FavTrip
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