Product Allocation Based on Demand
One of the worst things that can happen in the retail industry is that a customer comes into a store to buy a specific item and finds that product out of stock. The disappointment felt by the customer can be far worse for the retailer, who in addition to a lost sale, might have permanently lost a customer.
Product allocation solutions help to avoid this mishap by infusing customer demand into retailers’ allocation calculations. With product allocation software, accurate allocations are calculated incorporating forecasts, replenishment orders, as well as real-time POS data, to ensure an appropriate inventory of product is distributed across distribution centers and stores.
Accurate product allocation solutions are critical to help retailers determine the optimal mix of inventory to dispatch to stores, as well as knowing when adopt a “hold-back” strategy. When actual sales data is available, retailers will be aware of what products are selling where, and can then distribute “held back” product inventory from distribution centers to where it stands the best chance of being sold.