Acquisition of UK assortment management specialist to help retailers and manufacturers reduce costs and waste in supply chain

Acquisition of UK assortment management specialist to help retailers and manufacturers reduce costs and waste in supply chain

Aldata Solution Oyj and Cosmic Solutions have signed a definitive agreement for Aldata to acquire all shares and assets of Cosmic, a specialist UK provider of category management software, for a value of approximately £3 million, in a bid to help retailers better respond to changes in customer demand, reduce waste, and increase shopper satisfaction.

The combination of Aldata, which provides retail space and supply chain management solutions that optimise the placement and replenishment of products in the store, and Cosmic, which provides innovative analytical software that calculates the optimum mix of products to meet shopper, supplier and retailer objectives, creates a new Integrated Category Management solution, according to the company. This new solution will allow manufacturers and retailers to have the right product, in the right place, at the right time, and in the right quantity on supermarket shelves, it said.

Adding to demand optimisation portfolio

"This announcement is important for the retail and CPG [consumer packaged goods] industry as it combines best-of-breed technology to help reduce waste and costs in the supply chain, increase customer satisfaction, and optimise product profitability at a time when competition for customers is at an all-time high and economic recovery is creating major changes in buying behaviour," said Allan Davies, chief marketing officer of Aldata. "It is now even more critical than ever to ensure products are available to meet customer demand."

Aldata and Cosmic have already cooperated on joint customer engagements and have carried out collaborative marketing, and training activities based on their combined capabilities. Some of Cosmic's current customers include Unilever, Diageo, Johnson & Johnson, GlaxoSmithKline, United Biscuits, Heinz, Kimberley Clarke, Carlsberg, and Constellation Wines, plus regional brands including Kerry Foods, Findus, John West, Britvic, and Aunt Bessies.

According to the Global Retail CIO Survey 2010, from Martec International, which surveyed 109 retail chief information officers (CIOs) representing over $500 billion (£344 billion) in revenues and 62,000 stores, optimising the product/place/promotion offer remains key. Retailers said they were upgrading or implementing new systems for automated replenishment (52%), assortment optimisation (58%), promotions optimisation (56%) and promotions management (54%).

Executing category management strategy

"The acquisition of Cosmic represents the second step in our Integrated Category Management strategy following the acquisition of Apollo Space Management in 2008," said Bertrand Sciard, president and chief executive of Aldata. "Combined with our best-of-breed retail space, replenishment and supply chain suites, it will provide our customers with unique capabilities to plan and deliver accurately across multiple store sizes, and formats."

On completion of the transaction, Cosmic staff will join Aldata in a discrete business unit headed by Cosmic managing director, David Wilkins. Aldata's global marketing, sales channels and support network will add depth and breadth to Cosmic's international distribution, while maintaining the high levels of flexibility and service which Cosmic customers are accustomed to receiving, the company said.

"We are very excited to be joining a business with the same focus, dedication, and values that Cosmic has held for 18 years. Our long and trusted relationships with CPG suppliers reflect Aldata's similar relations with global retailers," added Wilkins. "Together we can deliver new levels of effective category management optimised for both sets of customers.