You will be familiar with it. Your merchandiser sends as much stock as possible to the stores, so that as little as possible stays behind in the distribution centre or warehouse. Unfortunately, this often means that you have to redistribute your stock later.
Smart Supply does not immediately send all stock from the distribution centre to the stores. After an initial allocation, the software uses an algorithm to determine the highest sales potential per SKU (Stock Keeping Unit) for each location. The stock will be distributed to the stores at which the demand for the product is the greatest.
Not one-on-one replenishment but a dynamic process. This means that you improve your product availability, increase your profit margin, reduce excess inventory and have fewer missed sales. But how does Smart Supply work? Find out below.
Stock optimisation software for the fashion industry
Do you work in the fashion industry? Do you have to redistribute stock between different stores? Then you are probably incurring unnecessary costs and should consider optimising your allocation and stock management process. Stock management is often the responsibility of a merchandise manager or store staff. But is it sensible to carry out this complex task yourself and could you save on redistribution costs?
Automation in the fashion industry
We regularly come across clothing stores and brands that are still carrying out this complex process manually. Using an extensive Excel spreadsheet, they register current stock levels and make forecasts for the forthcoming period. But in addition to the difficulty of predicting sales, there are all kinds of variables in the fashion industry. As well as store, article, colour and size, you also have to deal with complex size curves. Lingerie, for instance, has a cup and bandsize, while jeans have a waist size and a leg length. Do you have to contend with multiple stores and variables when replenishing stocks? Then it would be wise to fully optimise and/or automate this process.
Smart Supply: allocation and replenishment
Smart Supply stock optimisation software specialises in the allocation and replenishment of fashion items. Instead of you or your staff, it is the software's algorithm that decides how much stock your stores should have by article, colour and size (SKU). The system takes this complex decisions for you. Not only is it less prone to mistakes, but it also leaves your staff more time to provide customer service. Curious about how it works? Read more about Smart Supply.