Most – if not all – modern-day customers have fully embraced omni-channel shopping and expect the ability to switch between channels seamlessly. What’s more, consumer demand for instant gratification has increased the need for stock to be available in the right place and at the right time, every time. Improving demand planning means that stores do not get overloaded with inventory during periods where they experience troughs in demand and/or customer traffic. Here’s how to ensure that you pick the perfect solution to meet your business’s unique needs.
Always Satisfy Consumer Demand
Retailers should invest in a best-of-breed platform that incorporates anticipated consumer demand to ensure inventory strategies are aligned with customer-centric data model or forecast. An allocation solution that is integrated with forecasting, data analytics and assortment plans provides ultimate flexibility in determining how to best position inventory based on demand.
Distribute the Appropriate Amount of Stock to the Correct Selling Channels or Locations in a Timely Manner
Modern allocation solutions use allocation rules to model performance criteria to determine the best placement of stock and quickly allocate inventory to locations where they have the best chance of selling to maximize selling potential.
Use Product Models to Determine the Best Placement of Stock
Understanding store-level selling patterns is a granular exercise. Letting the system do the work enables more accurate and timely allocations with higher in-stock performance and reduced markdowns on misplaced inventory. Modern allocation solutions utilize product models that help allocators account for selling patterns down to a store level. Product models index stores against each other to help determine which stores have the greatest affinity to sell the product or products that are being allocated.