4R Systems Launches MaxOut™ at NRF 2004,
Solution Helps Retailers Optimize Their Product Exit Strategy

MaxOut provides ‘managed end-of-life’ approach; addresses economics of all available alternatives to maximize revenue at end of a product’s life, optimizes and executes exit strategy

New York, NY, January 12, 2004—National Retail Federation 2004—4R Systems, Inc., a leading provider of software tools, analytical models and information services that enable retailers and their suppliers to profitably manage their SKU’s throughout the retail lifecycle, unveiled today MaxOut; an exit strategy optimization tool developed to help retailers maximize revenue by aligning inventory levels with the product’s lifecycle, identifying the most profitable end-of-life merchandising decision out of all possible options, and applying advanced analytics to execute against those options.

“Retailers that commit to seasonal inventory in advance of a selling season succeed or fail based on their ability to profitably manage inventory productivity over the selling life of their merchandise. Penalties for poor merchandising decisions are paid in missed sales due to under-stocked stores, or excessive markdowns,” said Jiri Nechleba, CEO of 4R Systems. “MaxOut allows retailers to move beyond markdown management through our lifecycle driven end-of-life solution. Through this approach, retailers actively manage inventories downward as a product nears end-of-life and then utilize alternatives such as markdown, consolidation and liquidation to maximize profits. As a result, the retailer minimizes reliance on markdown, protects brand franchises and bolsters margins.”

Using sales and inventory data, 4R’s MaxOut solution provides retailers with the combined ability to:

• integrate end-of-life decisions with replenishment; early detection of downward trends enable the retailer to turn off the re-buy process, thereby eliminating the need for extensive markdowns.
• identify the most profitable product retirement merchandising decision out of all the possible options and execute against the option.
• determine the optimal price trajectory to be applied to a discontinued SKU over the course of its exit horizon through MaxOut’s price optimization engine.
• when liquidation of unsold inventory is an option, the price optimization engine determines the optimal balance of shelf-sales and liquidation sales thereby reducing revenue dilution.
• experiment with “what –if” scenarios in advance, enabling merchants to evaluate the financial impact of decisions before executing them.

For more information on MaxOut and 4R’s solutions that provide “Optimization Throughout the Entire Product Lifecycle,” visit us at Booth # 940 at the National Retail Federation Annual Conference, January 11-14 in New York.

About 4R Systems

4R Systems, Inc. is a leading provider of software tools, analytical models and information services that helps retailers and manufacturers significantly increase profits by optimizing their inventory and related supply chain decisions. Founded by supply chain experts from The Wharton School and Harvard Business School, 4R provides capabilities that profit optimize the matching of supply with demand. From initial launch, through replenishment and to end-of-life and for products ranging from short-lived fashion items to long-term staples, 4R provides retailers with solutions that fit their business. Clients using 4R solutions have seen increases in profitability of 1-2% of sales as a result of higher sales levels on lowered inventory. Representative clients include Linens ‘n Things, American Pacific, Rodale and Mothers Work. For more information, visit www.4rsystems.com or call 1-866-4RSYSTEMS.

 

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