Forecasting, Allocation
& Replenishment
The constantly widening range of product offering and growing network of sales lead to enormous volume of assortment mix, for which it is more and more difficult to estimate appropriate demand. Retailers tend to obtain inaccurate demand by not taking into account such important factors as changing product life-cycle, local customer needs and competition’s action.
The orders raised on such inadequately calculated demand may result in:
- out-of-stock, lost sales and customer walkouts
- over-stock and the high cost of its maintenance
Gains:
1 - 2%
Sales Increase
2 - 3%
Inventory Levels Reduction
30 - 40%
Stockouts Reduction
Benefits:
- More Effective Inventory Management:
- Reduction in warehouse inventory levels
- Reduction in store inventory levels
- Reduction in out-of-stock at the store level
- Increase in in-stock levels for turn/promoted products
at the store level
- Centralized Ordering Process:
- Reduction in employee cost (store orders)
- Reduction in employee cost (store orders)
- Increased Sales:
- Due to improved products on-shelf availability sales results have increased
