Launch SKU Enhancements

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When a brand gets a new distribution, the ordering patterns and velocities are often different from steady state. Initially a distributor will order much more than usual as they are attempting to fill the shelves of stores and build up safety stock. In addition, velocity is affected since customers won’t initially pull as much product off the shelf as it may take some time to encourage trial and build awareness of the new product.

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Confido's Launch SKU Enhancements accounts for these patterns and behaviors through Pipefills and Ramp Periods, to enable more accurate forecasting near term and steady state.

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Pipefills

Initially a distributor will order much more than usual; Confido incorporates this as Pipefill, an order adjustment used to to fill the initial shelves.

Ramp Period

For velocity, Confido incorporates a ramp period to account for number of weeks that it will take to reach the target velocity on the shelf.

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Let's walk through it!

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After the information is inputted, Confido will display a table that details the impact that the new SKU launch has on the sales forecast, as well as the impact of the Pipefill on the Ship-to forecast.