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