This has been a busy year for Herlitz Inventory Management and the 2024 Fall conference season was no exception. We participated in three conferences alongside BFC Software, our new parent company:
- IFDA Solutions Conference in Kansas City
- UniPro Foodservice Fall Conference in Orlando
- Golbon 2024 Fall Conference in our home city of Boston
When meeting with foodservice buyers at these conferences, three common challenges emerged:
- Inaccuracies when capturing lost sales
- Managing supply chain disruptions
- FSMA 204 and tracking lots
Let’s explore how HIMPACT’s key features, such as SALSA, LTO, and Lot Analysis, specifically address each of these challenges.
1. SALSA: Service And Lost Sales Analysis
What is SALSA?
SALSA allows distributors to use order entry data from their ERP or digital marketing solutions to:
- Accurately capture lost sales
- Prevent double or triple counting of customer orders during periods of out-of-stock
- Reduce inaccurate forecasts, which in return reduces overstocks
Why is SALSA Essential for Buyers?
Grocers and foodservice companies operate under a ship-and-cancel environment, therefore, customers often place the same order repeatedly when an item is out of stock, continuing until item is shipped. This artificially inflates demand forecasts, leading to inaccurate projections. SALSA analyzes customer orders and scrubs off the redundant orders to manage customer demand more accurately, preventing overstated demand during outages.
Customer Feedback: As demand surged by 80-300% during the initial months of Covid, several customers expressed their appreciation, thanking us for how SALSA kept HIMPACT forecasts stable. One customer shared that it was a relief to focus solely on vendor delivery issues, without worrying about how HIMPACT was managing the massive supply chain disruptions.
2. Long Term Out Analysis & Pipeline Fill
What is Long Term Out (LTO)?
HIMPACT was built to manage supply chain disruptions from the outset. During the pandemic, most vendors were open about which items they could and could not ship. Fast forwarding several years post-pandemic, it’s a different story. Vendors are much more guarded with their long-term outs now.
Our LTO feature, which was built as a result of industry strains during the pandemic, identifies items with lost sales for the last 21 days and analyzes the customer’s order history. When the vendor is back in stock, HIMPACT generates a suggested pipeline fill number for the buyers. Thanks to these LTO features, customers can proactively source substitute items to keep their customers happy by supplying like items as opposed to nothing.
Why is LTO Essential for Buyers?
This aspect of buying has always been a black hole for buyers. Buyers are looking for a solution that highlights which items vendors have temporarily stopped shipping without giving notice. They question “How empty is the supply chain below me after x days of being out?” The buyer needs to buy enough to fill those shelves or refrigerated sections and have enough on hand to replenish. LTO eliminates that guesswork. For every HIMPACT order, LTO Analysis highlights all items that are currently in a long term out status, allowing buyers to proactively source substitutable items to retain valued customer service.
3. Lot Analysis
What is Lot Analysis?
The new FSMA (Food Safety Modernization Act) 204 Rule goes into effect on January 20, 2026. It was a big topic of conversation during the conferences. We had many discussions about how BFC’s Inbound Solutions will interface directly with HIMPACT so that each item’s “on hand” is broken down by pallet and expiration date. This capability is powered by a feature called Lot Analysis in HIMPACT.
After Lot Analysis runs, the buyer can see how many cases are sellable, and how many are predicted to spoil before they are picked using FIFO. The analysis reruns daily to ensure the results are accurate regardless of the order-picking method used.
Why is Lot Analysis Essential to Buyers?
HIMPACT’s spoilage capabilities are set apart from most ERP and WMS providers that provide a 4–6-week backward-looking rolling average to forecast. HIMPACT understands not only seasonality within the year but also seasonality by day of the week. Our forward-looking forecast by day is an entirely different level of precision beyond what other systems offer. Lot Analysis is game-changing for perishable buyers as it significantly reduces waste and gives buyers the earliest and most accurate warning before spoilage.
Customer Feedback: Through Lot Analysis, HIMPACT predicted their item would have incurred $20,000 of spoils in December at the current sales rate and stock position. It realized this in September via HIMPACT’s Lot Analysis. As the head of purchasing said, “Now I know what I’m promoting in November.”
Discover Stability With HIMPACT
The 2024 Fall conference season offered valuable insights into the challenges and priorities foodservice buyers are facing today. Through innovative features like SALSA, LTO Analysis, and Lot Analysis, HIMPACT continues to support distributors in overcoming these hurdles–whether it’s improving demand accuracy, managing supply chain disruptions, or staying ahead of the FSMA 204 deadline.
As the foodservice landscape evolves, solutions that provide accuracy, foresight, and adaptability will be critical to success. To learn more about how HIMPACT can address your unique challenges, schedule a meeting with our team today.
