The goal of inventory replenishment software is to keep inventory flowing downstream by maintaining efficient order and line-item fill rates. Doing this requires understanding what products and how much need to be flowed where based on what customers are purchasing. Many retailers and wholesalers struggle to find an inventory replenishment solution that ensures inventory is where it needs to be to satisfy customer demand while minimizing inventory investment and maximizing inventory turns.
Without this type of solution, the replenishment process can be quite daunting. Many challenges make this process complex, including store and DC disconnects, multiple channels, overstocks cannibalizing shelf space and other factors, such as promotions and varying consumer demand.
Too many times, organizations take a one-size-fits-all approach to replenishment; treating every store similarly based on the volume level and product mix received. A best-in-class inventory replenishment and order planning solution can dramatically improve the process by recommending the appropriate quantity of inventory at the store level. This in turn helps to make sure high service levels are maintained while reducing overall inventory investment.