Retail Replenishment

Retail Replenishment Benefits

Reduce inventory

Increase turns

Optimize safety stock

Decrease lost sales

Decrease lead times

Boost buyer productivity

Achieve Optimal Inventory and Service Levels with Retail Replenishment

Retail Replenishment is an important inventory management solution for today’s business climate. It ensures that you always have sufficient inventory to meet customer demand and prevent both stockouts and overstocking. Calculating how much stock to reorder, timing the purchases and determining product allocation across different locations should be a seamless process. Omnichannel retailers find it even more challenging as each channel often requires different inventory items.

Retailers need to deliver high service levels while minimizing their inventory investment. Today’s retail Replenishment software can help do exactly that. For companies that must manage a large number of SKUs, one of the most effective ways of making store replenishment more accurate, efficient, and cost-effective is by using a replenishment system specifically tailored to operations. Retail Replenishment inventory management software includes functionality that will help you execute strategies, reduce lost sales, minimize inventory levels and maximize profits. All while saving time.

Replenishment Features and Capabilities

Demand Forecasting

To determine how much product is required, you must understand the anticipated need. Replenishment helps you forecast future sales and shipments using historic sales and shipment values. Thanks to seasonal profiles and promotional tools, you can adjust retail forecasting in accordance with future activity.

Lead Time Forecasting

You also need to calculate the lead time. That is the number of days between when you place an order and when the product is received and made ready for sale so you can determine how far in advance orders need to be placed. Retail Replenishment finds patterns and trends based on historic lead times for items and vendors.

Order Cycle Analysis

Knowing how much time tends to pass between product receipts helps you determine how much to order so that you can preserve inventory levels between shipments. Retail Replenishment helps balance acquisition costs against carrying costs to calculate the most profitable order cycle possible.

Service Level Analysis

While it is important to have enough inventory in stock to satisfy demand at any given time, you will also want to avoid the expense of having too much inventory on hand. Retail Replenishment calculates safety stock requirements by item and location to preserve in-stocks. This also minimizes the inventory investment.

Replenishment

Determine how much product has to be ordered based on what is already in stock. Logic suggests placing purchase orders only for those sources where additional product is required to preserve service levels and inventory effectiveness. Retail Replenishment generates suggested order quantities for every item and location on a nightly basis.

Special Order Analysis

Sometimes orders need to be adjusted to compensate for deals, promotions and new store openings. Adjustments are made as needed, and it can even transfer overstocks between locations to satisfy needs without bringing additional inventory into the demand chain.

Order Validity

Replenishment will ensure that your orders satisfy vendors’ minimum, maximum and multiples rules for truckloads, case packs, layers and pallets.