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Omni-Channel Retailers Require Strategic Allocations

Today’s customers have embraced omni-channel shopping and move seamlessly between channels to get what they want, when they want it and at a price they are willing to pay. Couple this with today’s many fulfillment options and customers’ expectations for rapid delivery and you can quickly see how challenging it’s become for retailers to satisfy customer demand while minimizing inventory investment and maximizing margins.

The nature of today’s retail marketplace requires retailers to be nimble and flexible dictating that they take a close look at the processes and systems that move and manage their inventory in order to support new fulfilment strategies such as “ship from store” and “click and collect”. And while there are many factors to consider in supporting this “flexible consumer” environment, the placement and movement of inventory is one of the most important investment areas.

Allocation planning is the primary business process for distributing and positioning inventory, and the complexity created by moving to an omni-channel model is challenging many current allocation solutions. When evaluating a new advanced allocation solution here are some things retailers need to consider.

  • Capture sales attribution by sales channel. The attribution of sales is a key component in driving optimal stock distribution across the supply chain. The allocation system needs to consider not only where a sale was made, but where the demand was fulfilled from in order to suggest the optimal allocation of future stock.
  • Customer and location allocation strategies. Focusing on the customer has become an extremely important addition to the traditional product and location focused allocation strategies. Through non-hierarchical attribution, flexible allocation solutions are able to model trends and demand to maximize sales potential through accurate allocation of stock.
  • Anticipate demand. Retailers can no longer just push out inventory and monitor demand. Today’s market requires insight into near-future demand to drive store allocations. Consuming information about anticipated demand supports projecting orders to stores in the future and supports and accelerates managing goods through the supply chain in an optimal way.
  • Flexible supply chain configuration. Traditionally supply chains were very linear and fairly straightforward to setup. But today, they must be nimble with inventory able to move forward, backward and sideways to be properly positioned. Configuring modern supply chains requires support for complex rules within the allocation system.
  • Pre-allocate inventory and cross dock. Inventory needs to flow through the supply chain faster. Retailers can no longer wait for inventory to arrive at D.C.’s before decisions are made to disperse it to stores. They need the capability within their allocation system to pre-allocate inventory from P.O.’s in order to reduce lead time. Utilization of cross docking and pre-packs are additional techniques required to handle supply chain time compression.
  • Real-time, accurate inventory visibility from P.O. to D.C. to channels. Moving from channel-specific inventory to shared inventory across channels enables retailers to react to variability in where demand occurs. Effectively fulfilling on variable demand requires having complete visibility into inventory at every level of the supply chain.
  • Inventory sourcing and prioritization. Allocation solutions should support options to source inventory from multiple points within the supply chain in order to reduce lead times to satisfy customer demand across selling channels. Inventory can be sourced direct from suppliers, from in-bound P.O.’s, from D.C. stock and from store stock.
  • Integration to assortment plan. The integration of the allocation solution to an assortment plan is integral to producing an allocation result that represents the merchandise story in stores and ensures the correct color and sizing choices are available to the customer. The integration of these two solutions also ensures a seamless cut over between planning and execution of an assortment.

JustEnough’s new Strategic Allocation solution has been designed to help retailers plan for and succeed in this dynamic, highly competitive environment. Our solution addresses all of the above allocation and supply chain complexities with flexibility and ease. To learn more about how JustEnough can help your business gain the benefits of strategic allocation, contact us at info@justenough.com.

NEW CUSTOMERS

Read about the latest companies to join the JustEnough customer family.

THOUGHT LEADERSHIP

Check out JustEnough's latest thought leadership, which touches on some of today's most pressing retail planning challenges.

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COMING BACK FOR MORE

Read about JustEnough customers who have selected additional JustEnough solutions.

AWARD WINNING CUSTOMERS

Another JustEnough Customer has been recognized by Apparel Magazine as a Top Innovator.

IN THE NEWS

Read about JustEnough and our customers in industry leading publications like OnWindows Magazine.

New Customers

Kathmandu

Discount Dance Supply (DDS) is the largest specialty retailer of dancewear in North America. With 10 stores and an online business accounting for over 90% of revenue, this retailer has built a lucrative niche in fashion dance apparel.

With over 200 suppliers and over 100 new product introductions per week, DDS was seeking a new solution to better respond to rapid changes in demand and reduce out-of-stocks. DDS’s current technology was unable to effectively react to all of the variables associated with their over 30,000 SKUs.

DDS selected JustEnough Demand Forecasting, Inventory Planning, and Replenishment and Order Planning to forecast and plan inventory for the company’s stores and robust online business. The JustEnough solutions were chosen for their impressive features and intuitive user interface.

By implementing JustEnough’s solutions, DDS expects to decrease stock outs while lowering overall inventory levels through a more efficient forecasting and purchasing process. Additionally, DDS expects the solutions to provide improved visibility into trends and more accurate forecasting for new products.

Billabong is a leading retailer of apparel, accessories, eyewear, wetsuits and hard goods under the Billabong, RVCA, Element, Von Zipper, Honolua Surf Company, Kustom, Palmers Surf, Xcel, Sector 9 and Tigerlilly brands. A true omni-channel retailer, Billabong offers products through specialized board sports retailers and through its own branded retail outlets and eCommerce site.

Billabong is a global company that is transitioning from planning regionally using manual, spreadsheet-based processes to using one demand planning system globally. JustEnough’s retail planning suite will be rolled out across the action sports company to consolidate, automate and streamline planning and replenishment processes across its wholesale, retail and ecommerce channels.

Billabong selected JustEnough as a best-in-class solution to augment their NetSuite ERP system based on its intuitive, easy-to-use user interface, ability to scale, OnSite and OnCloud deployment options and impressive customer community.

JustEnough will provide a robust and flexible solution enabling Billabong to:

  • Increase inventory turns and visibility
  • Improve customer service levels while minimizing inventory
  • Programmatically move inventory
  • Enhance planner productivity with exception-driven planning

Award Winning Customers

Kathmandu

Kathmandu was chosen as a 2015 Top Innovator by Apparel Magazine. A specialty retailer focused on delivering outdoor gear to travel and adventure enthusiasts, Kathmandu was honored for its adoption of JustEnough’s retail planning solutions that support Kathmandu’s current forecasting and planning operations, as well as those needed to manage an increasingly global business.

Apparel Magazine devoted its May 2015 issue to recognizing innovative apparel retailers, brands and manufacturers that are pushing the envelope and using innovation to drive their business operations. The honored companies all demonstrated “innovation in action”, whether these advances occurred through a software implementation, avant garde product launch or new business strategy.

Kathmandu was recognized for its use of JustEnough’s Assortment and Item Planning, Demand Forecasting, Inventory Planning and Replenishment solutions which helped it to recognize benefits including:

  • A significant reduction in overall stock holdings
  • Real-time insights that enable planners to make smarter, more informed purchase decisions
  • Better managed stock throughput and boundaries to deal with out-of-stock exceptions
  • Improved visibility of operating stock requirements that contribute to better planning practices around assortment range planning, option counts and product lifecycle

Read the Apparel Magazine Article

Thought Leadership

Thought Leadership

Don’t Risk Your Inventory on a Game of Chance

Imagine you’re playing Texas hold ‘em. At the beginning of a hand, the only things you know are what cards you’re holding, and how many other players are playing the hand. Each time community cards are dealt, your expectation of your odds is updated and you bet accordingly – betting more if you think you have a stronger hand and less if you think you are not likely to win.

But if you were to play poker the way many companies manage their inventory allocations, the betting pattern would be very different. You would blindly bet all of your chips after the first round of cards are dealt, before you have accessed your odds of winning the hand. It doesn’t take a seasoned gambler to understand that this is not exactly a recipe for maximizing winnings

Read the Full Story

JustEnough in the News

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News

OnWindows Magazine

JustEnough is featured in the Summer 2015 issue of OnWindows Magazine, Microsoft's premier publication.

Intelligent, effective promotions
Planning promotions has become extraordinarily complex over the last few years, thanks to the ever-evolving retail landscape. To succeed, retailers need a centralised system that will eliminate any guesswork

Read the Article

Don't-Miss Events

Events

BUYING & MERCHANDISING SUMMIT

Sept 22, 2015, The Cavendish Centre, London

Be a part of the only retail conference dedicated to Buying, Merchandising and Marketing. The retailer-led, one-day event will feature a dedicated programme, great speakers and the best opportunity to spend time with your peers in numerous networking breaks.

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NRF 105th ANNUAL CONVENTION & EXPO

Jan 17 - 20, 2016, New York City

NRF's Annual Convention & EXPO earned the nickname "Retail's BIG Show" years ago and because the name was so appropriate, it stuck. Today, Retail's BIG Show is NRF's flagship industry event held annually in New York City. The four-day event offers unparalleled education, collegial networking and an enormous EXPO Hall full of technologies and solutions. Plan now to attend and meet with JustEnough to learn about our solutions and new innovations.

The event is FREE for retailers and consultants.

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