Retailers and suppliers-distributors pursue a shared goal: to meet customer needs as effectively as possible. However, despite this common objective, there is significant misalignment between partners — and even within each organization. This lack of synchronization leads to excess inventory, lost sales, product write-offs, poor promotion support, missed seasonal opportunities, stagnant turnover, and declining store traffic.

This program, bringing together retail and distribution executives for the first time, will explore what each participant in the supply chain can do to improve their internal operations — a necessary step toward strengthening collaboration.

• How can inventory and replenishment be managed to ensure reliability and turnover for distributors, while also increasing retail margins?
• How can assortment, category width and depth be managed smartly to stay attractive to customers — while avoiding stockouts, write-offs, and returns?
• What is the actual role of distribution centers for both retailers and distributors?
• What operational process requirements (such as replenishment speed, ordering logic, warehouse and store workflows) arise from the need to offer the best selection, identify dead items quickly, and replace them with desirable products?
• How can companies structure their activities around promotions, seasonal fluctuations, and unexpected disruptions (force majeure)?

Retailers open new stores to expand coverage and grow traffic; distributors increase the quantity and quality of their presence to drive sales. However, both sides often underestimate the degree to which store traffic is lost due to unreliability, irrelevance, and lack of product choice. Addressing these root causes leads to increased traffic and higher average basket size — even in existing stores.

The specific demands of managing short- and long-life cycle products require greater precision in retail and distribution operations. This program introduces new interaction principles to pursue the shared goal of creating customer value.

The focus of the program is to build a comprehensive understanding of how retailers and distributors work — from establishing effective strategies to managing product flow and assortment across the full lifecycle, from entry to exit.

Within 30 days after completing the program, participants may apply — on a competitive basis — for a professional company analysis. This service is provided selectively and free of charge by Apple Consulting® experts. Based on the findings, Apple Consulting® will meet with you and your team to present a detailed results overview along with a tailored package of practical recommendations.

Features of managing products with different life cycles and requirements for operational processes

• Key profitability drivers for retail chains and distributors
• Core characteristics of short life cycle and/or high-demand products, and how they impact management approaches
• Core characteristics of long life cycle and/or low-frequency (irregular) demand products, and their influence on inventory and assortment management
• Key challenges and complications in managing product flow and assortment in such an environment

The key factor determining inventory size and supply reliability

• Primary drivers of inventory size and supply reliability
• Objective methods for determining service level (reliability) and identifying excess stock
• The impact of write-offs on the profitability of both retailers and distributors
• Key factors affecting inventory size and reliability in distributor warehouses — and consequently, at customer locations
• Replenishment time as a critical factor: components and strategies for reducing it

Algorithms for setting inventory and its dynamic replenishment

• The concept of a buffer and methodology for setting it correctly
• Algorithms for setting inventory levels and dynamically replenishing them at specific locations
• Step-by-step replenishment algorithm for warehouse stock

Key factors for distributor success and diversification, Urfan Guliev, CEO of ASNOVA HOLDING

• About ASNOVA Holding and its business model
• Evolution and transformation of the distribution business
• Operational process requirements in a modern distribution company
• Relocating part of the supply chain to Europe: goals, rationale, impact on the chain as a whole, and implications for the Ukrainian market

Algorithms for establishing stocks and their dynamic replenishment

• The concept of a buffer: what it really means in operations and how to set it up correctly
• Algorithms for inventory planning and replenishment at location level (stores, retail points)
• Shelf-level replenishment logic: taking product facing and visibility into account
• Dynamic buffer management (DBM) as an intelligent response mechanism to unpredictable demand fluctuations

Central warehouse – the heart of the supply chain

• The current purpose of the central warehouse (distribution center) in retail and distribution
• Paradigm shift – how should the DC actually function and for what purpose? The main functions of the DC as the heart of the supply chain. Using the aggregation factor, abandoning local efficiency, reducing replenishment batches, and speeding up order fulfillment
• Should a chain operate without a CS (DC) and how?
• Dynamic buffer management (DBM)

Practical use of TOC in distribution and own retail to accelerate the flow of goods, Stepan Slynchuk, CEO of Agromat, ex-CEO of SOVA Jewelry House (SOVA case)

• Practical use of the Theory of Constraints in distribution and retail to accelerate the flow of goods.
• How to improve the assortment and inventory management system in distribution?
• Package of changes in production and distribution: order launch system in production, color statistics, and priorities in production.
• Unique “war” cases: United.24, change in the staff motivation system
• Building procurement and managing buffers for products with long replenishment times to reduce inventory and increase reliability.
• Assortment and display management.

A new approach to assortment management and category management

• Forget ABC, XYZ – analyses. What to replace them with and why?
• Introduction of the concepts of “head,” “body,” and “tail” of the assortment, algorithms for their determination.
• How to work with fast-moving and slow-moving items.
• Improving the category management system.

A new approach to assortment management. Working with peak demand fluctuations (promotions, seasonality)

• Basic patterns of demand surges
• Assortment management during periods of peak surges or drops in demand (promotions, seasonality, rocket attacks, power outages, etc.)
• Management of new collections, management of goods during seasonal changes. Methods of accelerated replenishment
• Cases and examples.

Non-linear methods of increasing sales in retail and distribution, Konstantin Melnikov,

Founder of NTI Loyalty, former Marketing Director of the ATB-Market chain

• Changing the store format and its impact on traffic and increased demand
• What smart retail and distribution promotions can be used to generate demand?
• Systemic loyalty programs

Organizing operations according to a new logic

• Requirements for receiving, storing, picking, and shipping goods to the distribution center
• Priority system in warehouse operations
• Changes in the warehouse staff motivation system

Building a process of continuous improvement POOGI

• The essence and significance of the POOGI mechanism
• How to organize a process of continuous improvement in a chain of stores
• How to organize a process of continuous improvement in distribution
• Interaction with other functions in the company this mechanism

Synchronization and win-win in the supply chain: what retail and distribution can achieve together

• What is a mafia (value) proposition for customers
• Methodology for developing and selling value propositions
• Design and implementation of a pilot, measurement of results, scaling

Business logic and experience of BERTA GROUP, Oleksandr Berezhansky, Founder of BERTA Group, Ivan Danilenko, CEO of BERTA DISTRIBUTION

• The history of BERTA GROUP and the business logic of its development
• The transformation of a successful distribution player into a diversified holding company
• The role of own retail
• The role of own logistics