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Overview
4R Systems provides retailers breakthrough technologies that profit optimize inventory decisions throughout an item's life including:
By profit optimizing decisions such as how much to buy, when to do so and how much to keep in each store or DC, retailers are able to profitably reduce lost sales while simultaneously providing better customer service. For a $1 billion retailer, this profit impact can easily be $20 million or more.
4R's clients have seen improvements in sales, service levels, inventory levels and profitability from working with 4R to profit optimize key inventory and supply chain decisions across the life of a product.
Founded by supply chain experts Dr. Marshall Fisher of Wharton Business School and Dr. Ananth Raman of Harvard Business School - whose groundbreaking research on product lifecycles with over 30 world-class retailers pioneered retail supply chain analytics - 4R provides retailers and manufacturers with the tools and services to drive their businesses to new levels through the application of retail/supply chain analytics.
History
In 1996, Marshall Fisher of The Wharton School and Ananth Raman of Harvard Business School launched a study of retail inventory management practices. They invited retailers in selected short lifecycle product categories like apparel and footwear, personal computers and consumer electronics, and books and music to join their study. The response from retailers was overwhelming; while many of the retailers came from diverse industry backgrounds, they shared the common problem of accurately matching supply with demand over a short time horizon.
This research led to more than a dozen specific projects with retailers and suppliers where Drs. Fisher and Raman specifically designed and tested new methods and models to address short product lifecycle problems. During this process, they created several new mathematical models to analyze a product's life in short lifecycle supply chains. 4R Systems represents the "productization" of their work in the retail industry. Founded in 1999, 4R Systems' mission is to deliver the next generation of supply chain products for retailers and their suppliers, allowing them to better match supply with demand.
4R Systems closed on its first round of financing in 2000 with a deal led by TH Lee Putnam Ventures, TSG Equity Partners and OHA Investors. In 2002, the company completed its second round of financing led by TH Lee Putnam Ventures and TSG Equity Partners.
4R Systems and Rocket Science Retailing
"Our ability to collect and store data has outstripped our ability to analyze data, so now we find ourselves awash in data, but starved for information." — CEO of major retailer, 5 billion+ in sales
For many retailers, forecasting product demand is a right-brain function that relies on the gut feel of a few individuals and not on the systematic use of sales data. But it's a big mistake to overlook the opportunity to mix art and science. Retailers can significantly improve forecast accuracy simply by updating their predictions based on early sales data, tracking the accuracy of their forecasts, getting product testing right, and using a variety of forecasting approaches.
There is an industry-wide move toward something we call rocket science retailing — the act of blending traditional forecasting systems, which are largely based on the intuition of a handful of employees, with the prowess of information technology. Rocket science retailing fuses data and instinct with computer models and analysis to create a high-tech forecasting system supported by a flexible supply chain.
4R Systems is built on the foundation of the "rocket science retailing" concept and its value to retailers. It was 4R's Founders, Dr. Marshall Fisher and Dr. Ananth Raman, who conducted formal research on the concept after discussions with retailers who expressed that they had collected large amounts of consumer and sales data but were struggling to use it effectively. That research led to consulting engagements and to the development of 4R's software and methodologies that have been receiving accolades from retailers and manufacturers.
4R Systems delivers "rocket science retailing" and the next generation of forecasting and supply planning for chain retailers and their suppliers. Our products give you the tools to consistently plan smarter than the market to achieve the "4R's" — the Right Product at the Right Place and the Right Time at the Right Price.
To learn more about rocket science retailing click here