Retail Allocation According to Demand
One of the worst possible scenarios in the retail industry is that a customer walks into a store to buy a specific product and finds it out of stock. The customer’s disappointment at the product not being available may be far less than that felt by the retailer - who has not only lost a sale, but potentially a customer as well.
Retail allocation solutions reduce the likelihood of this scenario occurring by factoring customer demand into their allocation calculations. With retail allocation software, accurate allocations are produced taking into account forecasts, real-time POS data and replenishment orders in progress to ensure an appropriate supply of product is distributed between stores and distribution centers.
Robust retail allocation solutions are essential for retailers to determine the best mix of product to dispatch to stores, as well as indicating when it would be best to adopt a “hold-back” strategy. Using this strategy, when real-time sales data is available, retailers will know what products are selling where, and can distribute “held back” inventory from distribution centers to stores in appropriate quantities.